Contract and Rate Management

Setting up Allocations with a Commitment Lane Object Type

When you define a commitment lane object type of Shipment, it is similar to Commitment Counts in that Oracle Transportation Management calculates the percentage of shipments based on those that are in the defined lane and fall within the effective and expiration dates.

If you define a commitment allocation with a commitment lane object type of 'Order', the origin and destination of the order must be in the lane defined for it to be counted.

In this example, the lane must be A > D for this information to be incorporated into the counts.

flow from A to B to C to D

When defining commitment allocations based on Order, you need to designate a shipment as the primary shipment using the Primary check box on the itinerary leg.

The shipment marked as primary is the one that is counted, if the origin and destination of the order are in the lane defined.

Comparing Shipment and Order Commitment Lane Object Type:

This is an example to understand the difference between a commitment lane object type of Order versus Shipment.

An order has an origin of Chicago and a destination of Brussels with port of New York and Port of Antwerp in between.

You have commitment allocations defined with both an Order and Shipment Commitment Lane Object Type.

There can be different types of shipments built in Oracle Transportation Management to accommodate this order based on data defined, such as itineraries, rates, etc. In this example, three different shipments can be built.

Example 1

For this shipment, Chicago to Brussels, shipment 1 is marked Primary:

  • Lane Object Type = Order

    This will count towards Commitment Allocation when the lane is Chicago > Brussels
  • Lane Object Type = Shipment

    This will count towards Commitment Allocation when the lane is Chicago > Brussels

One shipment from Chicago to Brussels is the primary shipment

Example 2

Have a shipment Chicago to Port of New York to Port of Antwerp to Brussels

Shipment 2, Port of New York to Port of Antwerp,  is marked Primary.

  • Lane Object Type = Order.

    This will count towards Commitment Allocation when the lane is Chicago > Brussels
  • Lane Object Type = Shipment

    This will count towards Commitment Allocation when the lane is NYC > Antwerp

For Shipment 3 and Shipment 4:

  • Lane Object Type = Order

    Neither are primary shipments so neither will be accounted for in Allocations.
  • Lane Object Type = Shipment

    This will count towards Commitment Allocation only.

Shipping from Chicago to Brussels via multiple shipments. Shipment 3 from Chicago to Port of New York. Shipment 2, the primary shipment, from Port of New York to Port of Antwerp, and Shipment 4 from Port of Antwerp to Brussels.

Example 3

Shipment 5, Chicago to Port of Antwerp, is marked Primary.

  • Lane Object Type = Order

    This will count towards Commitment Allocation when the lane is Chicago > Brussels
  • Lane Object Type = Shipment

    This will count towards Commitment Allocation when the lane is Chicago > Antwerp

For Shipment 6, Port of Antwerp to Brussels:

  • Lane Object Type = Order

    It is not a primary shipment so it will be accounted for in Allocations.
  • Lane Object Type = Shipment

    This will count towards Commitment Allocation only.

Shipping from Chicago to Brussels via multiple shipments. Shipment 5, the primary shipment, from Chicago to Port of Antwerp, and Shipment 6 from Port of Antwerp to Brussels.

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