Question & Answer
Question
Out-of-Route Distance Rating Method
Answer
Out-of-Route Distance Rating Method
Use the Out-of-Route Distance rating method to definea standard accessorial for out-of-route charges for the interim stopsin a multi-stop route. Sterling TMS applies theaccessorials to multi-stop shipments.
Used For
Planned standard accessorials.
Unit of Measurement
Miles or kilometers.
Examples
The following example shows how Sterling TMS calculatesthe out-of-route distance:
- Create a contract lane from Minneapolis to Philadelphia:
Select LaneDistance as the rating method. The direct route from Minneapolisto Philadelphia is 1200 miles.
- Define a standard accessorial:
- Select Out-of-Route Distance as the ratingmethod.
- Enter $2.00 per mile as the rate.
- Create this multi-stop shipment:
- Minneapolis to Chicago
- Chicago to Cleveland
- Cleveland to Philadelphia
- Sterling TMS determinesthat the actual distance of the multi-stop route is 1270 miles.
- Sterling TMS subtractsthe direct route from Minneapolis to Philadelphia (1200 miles) fromthe total distance (1270 miles). The out-of-route-distance is 70 miles.
- Sterling TMS multipliesthe distance (70 miles) by the rate ($2.00 per mile) to calculatethe accessorial charge ($140).
The following example shows how you can specify the PercentDistance Included in Linehaul field in an out-of-routedistance accessorial:
- You want the first 20 percent of the out-of-route distance tobe free. Enter 120 in the PercentDistance Included in Linehaul field.
- The total out-of-route distance on a multi-stop shipment is 100miles.
- Sterling TMS calculatesthat the Percent Distance Included in Linehaul is20 miles (20 percent of 100 miles).
- Sterling TMS appliesthe accessorial charge to the remaining 80 miles.
The following example shows how to define a standard accessorialto calculate out-of-route distance for a multi-stop delivery. Thisexample also illustrates the impact of the Percent DistanceIncluded in Linehaul field.
In thisexample the shipment has the following attributes:
- You do not want the carrier to charge for the first 10 percentof the out-of-route miles.
- The distance for a single stop-delivery from Point A to PointD is 500 miles.
- You add stops at Point B and Point C that cause the truck to travel150 extra miles.
Sterling TMS usesthe following process to calculate the charge:
- You define a standard accessorial:
- Select Out-of-Route Distance as the RatingMethod.
- Select Miles as the Unit ofMeasure.
- Enter 110 as the Percent DistanceIncluded in Linehaul.
- You assign the accessorial to a contract that contains a lanefrom Point A to Point D. You enter $2.00 per mile as the price ofthe accessorial.
- A user in Execution creates a multi-stop shipment that goes fromPoint A to Point B then to Point C then to Point D.
- Sterling TMS usesthe contract from Step 2 to calculate the shipment charges.
- Sterling TMS determinesthe distance:
- The direct distance from Point A to Point D is 500 miles.
- The total distance from Point A to B to C to D is 650 miles.
- The out-of-route distance is 150 miles (650 - 500).
- Sterling TMS determineshow to charge for the out-of-route miles:
- The Percent Distance Included in Linehaul fieldis set to 110 so there is no charge for thefirst 10 percent of the out-of-route miles.
- The total out-of-route distance is 150 miles so there is nocharge for 15 miles (10 percent of 150).
- Sterling TMS subtractsthe 15 miles from the total. The system applies the charge to 135miles (150 - 15).
- Sterling TMS appliesthe $2.00 per mile charge to the 135 miles. The total accessorialcharge is $270.
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Document Information
Modified date:
08 December 2018
UID
ibm10752207