SMC Discounts

Note: Support for on-premise SMC3 RateWare applications have been deprecated as of 6.4.2 release and will be removed from a future release.

The SMC3 Discount page is used to pass various discounts to the SMC3 external rating engine. The SMC3 engine takes the discount data and calculates the discounts as part of its rating process. This eliminates the overhead of having Oracle Transportation Management calculate all the possible discounts prior to calling the SMC3 engine.

Movement Type

Oracle Transportation Management provides the ability to define discounts based on the movement type. Oracle Transportation Management then captures different sets of discounts for each of the movement type and sends the appropriate set of discounts for the movement type returned from CarrierConnect XL 3.0.

Carriers use the movement type flags to let customers know who is in control of their freight during transit. These flags are also used to drive discounted ratings in the carrier’s contracts. Carriers generally offer deeper discounts for DIRECT and PARTNER moves than INDIRECT.

Carrier Connect XL movement type designators are:

• DIRECT – originating carrier is in control of a shipment for the entire transit time
• INDIRECT – shipment is handed off to a different carrier in transit
• PARTNER – shipment is handed off to a partner carrier in transit
• CUSTOM – adds flexibility for a carrier to designate a special type of movement type that is different from DIRECT, INDIRECT, or PARTNER

Note: In case the discount for a particular movement type is not defined then Oracle Transportation Management will look for a discount which doesn't have any movement type associated with it. For example if the movement type returned by CarrierConnect XL is INDIRECT and there is no discount defined for INDIRECT movement type, then the default discount will be applied, i.e. the discount with a blank movement type.

Discount Fields

The values entered in the SMC3 Discount fields are percentages. For example, if the discount is 10% if the shipment is more than 40,000 pounds, then you would enter 10 in the M40M field.

The SMC3 Discount fields are:

• Min Discount: The minimum discount to apply.
• L5C Discount: The discount if the shipment is less than 500 pounds.
• M5C: The discount if the shipment is more than 500 pounds.
• M1M: The discount if the shipment is more than 1000 pounds.
• M2M: The discount if the shipment is more than 2000 pounds.
• M5M: The discount if the shipment is more than 5000 pounds.
• M10M: The discount if the shipment is more than 10,000 pounds.
• M20M: The discount if the shipment is more than 20,000 pounds.
• M30M: The discount if the shipment is more than 30,000 pounds.
• M40M: The discount if the shipment is more than 40,000 pounds.

Stop Alteration Break

In some rating scenarios you may need to prevent SMC3 from rating a shipment at a higher weight band. You can use RateWare Server and RatewareXL to stop alternation. This can be done by setting the discount amount for a particular weight band to 99.99 where you want SMC3 to stop deficit rating. Alternatively, you can also select a weight break from the Stop Alternation Break drop-down list. When the discount amount of 99.99 is sent to the RateWare Server, it tells SMC3 not to alternate to the next higher weight band if one is available.

For instance, if you do not want to apply discounts above the M20M weight band (over 20,000 lbs), and just want the shipment to be rated at M20M tariff without discounts, you need to set the M30M discount to 99.99 or select the M30M discount from the Stop Alternation Break drop-down list to prevent SMC3 from trying to calculate the discount at the higher level.

For RatewareXL and RatewareXL with Carrier Connect, if you select a value from the Stop Alternation Break drop-down list and set a discount amount for any of the weight bands to 99.99, the value selected from the drop-down list is considered.

Note: Do not select a value from the Stop Alternation Break drop-down list and set the discount amount for any of the weight bands to 99.99 simultaneously.

Note: This feature is dependent on a third-party tool. It will be unsupported if the third-party tool changes their implementation of this feature.