Contract and Rate Management

Rate Service

This page is accessed via Contract and Rate Management > Contract Management > Rate Service.

The Rate Manager allows you to manage rates for inbound and outbound goods for all transportation modes, including truckload and less-than-truckload, vessels, rail and air. A rate is considered a contract between the user and a service provider or a user and their clients. The Rate Manager stores information about effective and expiration dates, freight limitations, accessorials, and the rates themselves. Rates can be defined or limited by weight, volume, distance and commodity. In addition, a rate can model most industry practices such as deficit ratings, base and excess discounts, minimums and surcharges. The rate service determines how to calculate the time in transit based on the rate service type and taking into account other factors that may come into play (such as rest periods).

Note: Alternatively, you can enter rates automatically via integration.

One or more rate records can be associated with a single rate offering. While the offering provides general contractual details, the record defines a cost for service between one location and another. A record relies on an associated rate offering for much of its information but can override some of the data in the offering, if necessary.

After you define a rate offering or record, you can use the data when qualifying an order. Once pickup and destination locations are provided, an itinerary is chosen and the order is released, the shipment is matched with one or more qualifying rates. Rates qualify when:

  • Rate constraints for weight, length and other units are met for the order and the itinerary.
  • Time constraints for the order are met.
  • Optional constraints, such as those requiring special equipment or services, are met.
  • Geographical requirements are met.

Rate service determines the time required to transport goods from one point to another. Rate service depends on the service type you select.

Creating a rate service using the Rate Manager consists of two steps:

  • Rate Service Header defines basic information such as the Service ID, rate service type, and other basic information for the rate service. The type of service you select determines the attribute fields you see in Rate Service Details.
  • Rate Service Details depending upon the Rate Service Type you select, Oracle Transportation Management presents options and fields to establish the exact parameters of this rate service based on type.

After the rate service is created, you can modify the data in any section without having to go through the entire step sequence.

The following optimization properties may be useful:

Rate Service Header

The Header section contains general information about the service.

  1. Rate Service ID uniquely identifies this rate service. After a rate service is created, you can assign it to any rate offering.
  2. Rate Service Name describes this rate service and is for informational and searching purposes only.
  3. Driving Penalty is the per hour cost for driving time. It is not for shipment cost purposes. It is only used in the rate service scheduling routing to reduce the overall driving cost in conjunction with waiting penalty.
  4. Domain Name specifies the domain in which the rate service is used.
  5. Rate Service Type: The type determines the attribute options presented on the Rate Service Details tab. The Rate Service Type that you select depends on the method of transportation you plan to use and how you want to determine distance and service time.
  6. Calendar: Enter a Calendar ID to associate specific activities, as well as the days and times that they are available, to this rate service. For example, you can define the days and hours that a facility accepts trucks for unloading. This is used during shipment planning to determine if a rate service is a viable candidate.

    Note: In rate service, the calendar is only used with DAYDURATION, DISTANCEDURATION, and time based accessorials.

    In your calendar, use the PICKUP and DROPOFF activities. The PICKUP time is the latest pickup time and the RECEIVE time is the guaranteed delivery time. For example, an overnight service may have a pickup time of 5:00PM and a drop off time of 10:30AM.

    If the activity is PICKUP, then the system assigns the time from the END time on the calendar PICKUP activity.

    If the activity is DROPOFF, then they system assigns the time from the START time on the calendar DROPOFF activity.

    The start time of the shipment (Activity PICKUP) should be the end of the Calendar activity window and the end time of the shipment (Activity DROPOFF) should be start of the Calendar activity window.

    If the arrival time at your first stop is earlier than the pickup window's start time, then a wait time is automatically created that is equal to the time between the arrival time and the pickup window's start time. The departure time at the stop is reset to the pickup window's start time. This wait time can be removed by setting the parameter MINIMIZE WAIT TIME IN RATE SERVICE CALCULATION.

  7. Waiting Penalty is the per hour cost for waiting time. It is not for shipment cost purposes. It is only used in the rate service scheduling routing to reduce the overall driving cost in conjunction with driving penalty. This does not apply to Air Schedule, Ground Schedule or Voyage Schedule.
  8. Ignore Delivery Location Calendar: When selected, the drive routing ignores the delivery location calendar. This only applies to Day Duration and Distance Duration.
  9. External Voyage Engine Type: Select the external voyage engine type from which you want to fetch the voyage schedules.
  10. External System ID: Indicates the URL for connecting to the external voyage service.

    Note: Steps 9 and 10 are mandatory when you select EXTERNALVOYAGESCHEDULE from the Rate Service Type dropdown. 

    If you select the External Voyage Engine Type as P44, you must create an external system to connect to the Ocean insights P44. To create an external system, refer to Creating External System.

    External Voyage Schedule is used to select a voyage from an external voyage API and populate the voyage schedule.

  11. Time Window Tolerance: Enter a numeric value for the number of hours you want to add to the pickup and delivery times for shipments. The value you enter adds to the allowable late times established for pickup and delivery at shipment locations. For example, if you enter a 1, all pickup and delivery times have an additional hour. If you are required to be at a location between 2 and 3 p.m., and you arrive between 2 and 4 p.m., your arrival is on time.

  12. Max Wait Time Per Stop is the maximum time allowed to wait to pickup or drop off goods. For example, if the Max Wait Time per Stop is set to 15 minutes, a drop-off location opens for business at 7 a.m. and a driver arrives at a stop at 6:30 a.m., the driver is not allowed to wait that extra 15 minutes and must return. When the glog.appointment.WaitTimeOption property is set to TRUE, this wait time is added to the estimated arrival time when building a shipment.
  13. Use Max Longhaul Wait Time to configure a wait time associated with the first delivery stop after a long haul. There can be a large amount of time between the last pickup and the first delivery stop so use this field to accommodate a wait time for the long haul move. This field applies to the first delivery location only.
    If the Max Longhaul Wait Time is not set, then the Max Wait Time Per Stop is used for the first delivery stop (as well as every other stop).
  14. Use Rush Hour: When selected, rush hour is added to drive time, if defined. This only applies to Lookup, Simulation and External.

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