Transportation rate model is becoming an automation for many TMS (Transportation Management System). However, rate model is not commonly adopted in Asia countries. One reason is the different transportation rating methods in each Asia countries. This leads to many customisation.
Common Transport Rate Model
These are some of the most common rate models you can design for your TMS.
- City to City
- Zip to Zip
- Distance
- Volumetric, weight or volume
- Duration e.g daily, monthly
- Equipment e.g. truck, chassis
Why Rating Model
Rating model goes beyond system design. Sadly, many rates by sales team are done in isolation with consideration to TMS. Using rating model have many advantages like cost reduction from operational efficiency, automated computation and financial settlement. This model are proven is eCommerce and eLogistics companies who are pure play digital.
Many traditional logistics providers remains entrenched in paper rates while their digital counterparts enter the logistics with rates digitalisation. The digital transformation of rate model remains a constant challenges for many. A major reason is due to user resistance to digitalise and mindset to change. Do realise that rates is no longer an IT or sales task but a collaborative efforts.
Danny Kwok 