The system calculates the strategic freight in one of the following ways:
Multiplies the standard freight charge by the percentage defined as the freight markup for the ship via, if a markup percentage is set. See Setting Ship Vias to Use Strategic Freight for more information about setting a flat markup percentage for a shipping method.
If a freight markup percentage is not defined for the ship via, the system uses the value of a product and its load factor (weight, size, etc.) to determine the Freight Cube Modifier for a product. The system matches the product value to a minimum and maximum range to and uses the modifier assigned to that range. o determine the Freight Cube Factor, the system searches for a product's core status (based on your service tier level), and maps that to the visibility of the vendor (how visible a vendor's pricing is to distributors) assigned to the sell group.
For more information about how Eclipse calculates strategic freight using the modifiers and factors, see below.
The following conditions are true for the strategic freight calculation using the Freight Cube Modifiers and Freight Cube Factors:
The product core status is determined by your service level. If the core status for a product at the customer level is not defined, the system uses the core status at the customer category level. If the product does not have a core status assigned at the customer category level, the system uses the core status set at the product level. If the product does not have a core status assigned the system uses the default core status set for the product's sell group. If the product's sell group does not have a default core status set, the system uses a default core status of Non-Core D.
If the customer does not have a category assigned, the system uses the Core A value from the ship via's Freight Cube Factors table.
If there are no factors entered in the Freight Cube Factors table in the Ship Vias area of the in the strategic freight Maintenance screen, then the system does not calculate a strategic freight charge even if the ship via is flagged to use strategic freight.
If your Data Services Expiration Date has passed, the following conditions are true for the strategic freight calculation:
The system processes all products as Core A, regardless of the product's setting.
If a Vendor Visibility factor is not set for the product sell group, the system uses Very High.
An order for a total of $255.89 for a Tiny Contractor has two products on it with the following characteristics:
|
Product |
Extended Weight |
Sell Group |
Visibility Level |
Core Status |
|
4 V6X-S |
5.25 lbs |
TRPL-S |
Low |
Non-Core C |
|
5 ZW9 D |
12.75 lbs |
TPPL-A |
Very High |
Core A |
The standard system-calculated freight charge for the ship via on the order is $15.00.
For this example, the Freight Cube Modifiers and the Freight Cube Factors for the ship via are entered as follows. You enter the values in the Freight Cube Modifiers and Freight Cube Factors tables with the information that Strategic Pricing Associates provides to you.
To calculate strategic freight, the system first prorates the actual freight charge for the products on the order based on their weight using the following calculation:
(Extended Weight of Product / Total Extended Weight of All Products) * Actual Shipment Cost
In this example, the prorated portion of the weight for 4 V6X-S is (5.25 / 18.00) * 15.00 = 4.3755. The prorated portion of the weight for 5 ZW9 D is (12.75 / 18.00) * 15.00 = 10.625.
The strategic freight charge for each product on the order is determined using the following calculation:
Prorated Freight Cost * [(Freight Cube Factor * Freight Cost Cube Multiplier) + 1]
The modifiers and factors are determined as follows:
|
Product |
Freight Cube Modifier |
Freight Cube Factor |
|
4 V6X-S |
0.70 based on the order total of $255.89 falling between $200 and $500 |
0.20 based on a Non-Core C with Low Visibility |
|
5 ZW9 D |
0.70 based on the order total of $255.89 falling between $200 and $500 |
0.05 based on Core A with Very High Visibility |
In this example, the strategic freight for the two products on the order is as follows:
Product 4 V6X-S: $4.3755 * [(0.20 * 0.70)] + 1 = $4.9881
Product 5 ZW9D: $10.6245 * [0.05 * 0.70) +1 = $10.9964
Total strategic freight for the order is $4.9881 + $10.9964 = $15.98, representing a 6.53% increase in freight from the original freight charge.
See Also:
Strategic Freight Calculations - Platinum Pricing Service Tier