Tuesday, 14 March 2017

About logistics tariffs and discounts

Logistics tariffs are calculated by a basic order tariff and specific performance tariffs. The order tariff is based on each specific order for each shipment or another unit that will cover every basic task, performance and service. The performance tariffs are for more specific performances that will include all the costs related to the specific performance unit.

Using the tariffs above, an executed order would look like this:

Price = Basic Unit x Order Tariff + Specific Units x Performance Tariff

Handling orders tariff, including the packing of the order along with loading, sorting and unloading, will include all of the costs that are created by the order. The performance tariff will cover all the costs depending on the amount of items that need to be handled, sorted and transported. The storage orders will be charged based on a cost that includes an in and out storing tariff for the storage of the single load units. There’s also a store place tariff applied that will cover the cost of storing the load unit for some time.

A basic tariff, handling tariff and distance tariff is used for freight orders. The basic tariff covers transport provision, transhipment points and the roll-up. The handling tariff covers the sorting, load and unloading and the transportation of the unit over a set distance is covered by the distance tariff.

Discounts are only applied when there a re expected savings to be made or when higher usage is a result. Here are a couple of examples:

  1. Logistics quantity discounts are used to improve customer loyalty and drive more usage of the service. They are dependent on the amount of units that are ordered by the same customer over a long period of time.
  2. Logistics order discounts are given to encourage orders being placed for complete logistic units – such as full transport units or packages.

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