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Freight Rate Shop

Freight Rate Shop

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Freight Rate Shop

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  1. Freight Rate Shop

  2. Freight Rate Shop (FRS) • Lesson 1 • Overview & Benefits • File Maintenance • Lesson 2 • How to access FRS • How FRS works • Lesson 3 • More FRS features

  3. WIFM (What’s In It For Me?) • Let the system help you more accurately determine freight charges for shipments. • Better profits on your orders • Better costing of your tickets

  4. Freight Rate Shop (FRS) • Lesson 1 • Overview & Benefits • File Maintenance

  5. What is Freight Rate Shop? A system in Trilogie that determines freight charges for inbound and outbound shipments by analyzing address information, freight classes and weight.

  6. Freight Rate Shop - Overview • FEI spends approximately $130 million annually on freight. • Failure to bill & cost freight accurately means we overstate our gross profit and undercharge our customers. • Freight Rate Shop helps reduce the expense of LTL and Parcel (UPS) freight charges. • Identify the most cost-effective carrier to ship material. • Quote the customer more accurate freight charges. • See transit times for carriers. • Compare UPS and LTL rates for the same shipment

  7. Freight Rate Benefits • Calculate freight based on carrier specific contracts and the Czar Lite freight tariffs. • “Stand alone” access OR access from within a transaction to pull in specific info automatically • A freight rate request can be generated for an order (stock and direct), cash sale, bid, PO, debit memo, BOL, RFC, stock receipt, or by manually entering in “hypothetical” info • Calculate rates for dimensional or oversized shipments.

  8. Freight Rate Benefits (continued) • When available, see the service (transit) days for a shipment and any carrier notes that exist • Update inbound or outbound freight charges for a selected freight rate and carrier back to unprocessed stock orders, cash sales, bids, debit memos, interbranch transfers, and BOLs. • Indicators on Invoice Preview Report show when Freight Rate Shop used and whether a bump was applied

  9. Freight Rate Shop – File Maintenance • Two Types: • File Maintenance performed at HQ by Transportation Department. • File Maintenance performed at the branch.

  10. File Maintenance at HQ • Carrier Contracts File Maintenance • Enter specific rates for certain carriers • Tells system to deviate from Czar Lite rates • Ship Via File Maintenance • Ship Via codes • Surcharges • Which contracts to use • Discounts • Carrier Notes • Servicing Regions • Other

  11. Questions about HQ File Maintenance? Contact the Transportation Department at HQ.

  12. Freight Rate Shop – File Maintenance • Two Types: • File Maintenance performed at HQ by Transportation Department. • File Maintenance performed at the branch.

  13. What Branches Need to Do During SP- Code creation, enter an accurate weight and freight class in fields 10 & 11. Item weights can often be found in a vendor’s product catalog. If you don’t know the exact weight of the product, enter a realistic number (perhaps that of a similar item).

  14. You can type “H” in the Freight Class field to pick the freight class from a list that you think best applies to the product.

  15. If you are unsure of which freight class to use, there is a spreadsheet that breaks out the freight classes by linebuy. The spreadsheet is available on the Intranet: Logistics → Transportation → General Shipping Info → Freight Classes by Linebuy

  16. Freight Bump File Maintenance (menus 2, 1, 30) *** Normally done by Operations Managers

  17. Freight Bump File Maintenance Select which warehouse you want to set the freight bump for. (Do it for each of your warehouses individually.)

  18. Freight Bump File Maintenance See what the corporate best practices are for Freight Charge & Freight Cost Bumps (Inbound freight). Use the #/Ref BOP to: - Change the freight bumps (inbound, outbound, and cost) that can be added to the calculated Freight Rate Shop freight charges. - Indicate whether you want these bumps to be applied automatically to all transactions updated via FRS (Auto-Bump=Y) or if you want your associates to always have the option of whether to bump (Auto-Bump N)

  19. Lesson 2 • How to access FRS • How FRS works

  20. Accessing Freight Rate Shop Two Ways: -Jumpword or Menu Path -Directly from within a transaction

  21. Freight Rate Shop (Jumpword FRS; menus 16, 9) Use the Jumpword or menu path to determine what freight charges should be based on criteria you enter manually. (You want to use this option to enter hypothetical criteria or if you need a rate quote for an RFC)

  22. Or access Freight Rate Shop by typing the jumpword FRS at the bottom options prompt of: - BOD- Cash Sales- Debit Memo Entry & Inquiry- Bill of Lading Entry & Inquiry- Purchase Order Entry- Stock Receipts Entry, Inquiry, & Reconciliation

  23. Freight Rate Shop (main screen) Header – Enter your freight rate criteria (depending on how you accessed FRS some of this may already be filled in). Results – See the best three freight rates for the criteria entered

  24. Now lets take a look at how FRS works…

  25. Regardless of how you accesses FRS (jumpword or from a transaction), Origin zip code/state and Destination zip code/state default based on the transaction. Specify whether you want the rate results to be based on ordered, committed, or uncommitted material on the transaction.

  26. The freight classes and weights of the products on the order display in the Product Criteria section. Always use the F#/Frt Class Detail BOP for EACH freight class to see what products on the transaction fall into which freight class AND make sure weights are entered for each product.

  27. Make sure all of the products in the Freight Class Detail screen have a weight entered. If not, you’ll need to adjust the weight in FRS. (Inaccurate/missing weights are why it’s VITAL you review Freight Class Detail for EACH AND EVERY freight class that displays in FRS.)

  28. If you see inaccurate/missing weights in the Freight Class Detail screen, use the #/Ref BOP to adjust the weight for the freight class BEFORE rating the shipment.

  29. Once you use the #/Ref bottom option to access a specific freight class, enter an updated weight amount.

  30. After you have checked and adjusted the weights & shipment criteria as necessary, use the R/Rate BOP to find the best freight rates for the order.

  31. Specify whether you want your results to include LTL carriers, parcel carriers, or both. *** You can only use Parcel carriers when the combined weight of the products is less than 150 lbs.

  32. When rating for LTL carriers or Both, you are prompted to enter a pallet weight for the shipment. In general, a pallet weighs about 40 lbs. So adjust the pallet weight depending on how many pallets will be used for the shipment. The weight you enter is added to the lowest freight class on the order.

  33. 3 results (maybe less) display based on your criteria. Consider the freight charge and service days (how long the shipment will take to get to its destination) when deciding which freight carrier to use for the order. * Notice the weight of Freight Class 85 has changed from 206 to 246 to account for the pallet weight.

  34. If any Carrier Notes display for any of the carriers in your results, use the D#/Detail Notes bottom option to see the full text.

  35. Full text of Carrier Notes

  36. If you want to apply one of the freight charges listed to the transaction, use the U#/Update BOP. *** You can only update freight charges back to stock orders, cash sales, bids, interbranch transfers, debit memos, and BOLs. For all other transactions, you have to manually enter the freight charge based on the results you get in FRS.

  37. Specify whether you want the freight charge to be applied in the Outbound Shipping or Inbound Freight field in the sales order or only to the freight cost field invoice. *** If you select Inbound Freight, it also sets the Freight Cost on the invoice.

  38. Specify whether you want to update the carrier on the order. If you say N to this prompt, the freight charge is still carried over to the transaction but the Ship Via isn’t changed. You’ll normally say Yes. But you might say No when you are applying a freight charge to a CPU order.

  39. The system checks to see if the Inbound Freight or Outbound Shipping field is set to “N” to not charge freight. You can override that setting from Freight Rate Shop.

  40. Specify whether you also want to apply a bump to the freight charge. The bump applied is determined by the percentages entered in Freight Bump File Maintenance. *** You only get this prompt if the Auto-Bump field in Freight Bump File Maintenance is set to N. If it’s set to Y, the freight rate is bumped automatically.

  41. The selected freight rate and/or bump has been applied to the order.

  42. Completion Information page in SOE or Invoicing : The Ship Via field is populated with the selected carrier. In this example: The Inbound Shipping field is populated with the selected freight rate with the bump applied too. FRS* indicates that you used the Freight Rate Shop to rate the freight for the order AND you also selected to apply the bump. The FRS or FRS* indicator also displays on the Invoice Preview Report to show when you’ve used FRS and when you’ve bumped freight.

  43. *** For orders entered to the DC *** All DC orders that have an LTL type ship-via will be rated by the DC with the lowest cost carrier regardless of transit days… If service time, however, is more important to you than price for a DC order shipping direct to a customer - enter a Special Shipping Instruction of FRT on your order/PO. Then the DC will honor your specified carrier.

  44. Lesson 3 • More features of FRS

  45. Rates for Specific Carriers

  46. You can use the #/Ref bottom option to access field 7 (Ship Via) and get a freight quote for a specific carrier. * NOTE: It’s not best practice to do this except in extreme circumstances. Normally, you should let the system tell you which carrier is best

  47. Once you access the Ship-Via field, just enter the specific carrier you want a quote for, or type H to select from a list of carriers.

  48. Rate the shipment as normal.

  49. Your Freight Rate Results only show you a freight quote for the carrier you entered in the Ship-Via field.

  50. Rates for Directs