Contract and Tariff Management
Road Transport Contracts and Tariffs: Pricing and Process Management
Road transport is a crucial part of the logistics sector, with two main transportation methods: Contracted Transport and Quotation-Based Transport. Each model involves different business processes, and pricing methods vary accordingly. Transapp Contract Management enables the effective management of both models, providing logistics companies with accurate and efficient pricing tools for transportation agreements with their customers and agents.
Quotation-Based Transport: Pricing Without a Specific Contract
Quotation-based transport is a model in which transportation is carried out by submitting a quote for a specific shipment, without requiring a formal contract. Pricing in this method is determined based on various criteria such as the type of cargo, weight, destination country, and other transportation conditions.
Quotation-Based Transport Process:
- Determining Cargo Specifications: Factors such as cargo type, weight, volume, and transportation distance are evaluated.
- Creating a Price Quote: A price quote is generated based on the cargo specifications. This price is usually determined through mutual agreement between the transportation company and the customer.
- Quote Acceptance: The customer accepts the quote, and the transportation process begins.
- Executing the Transport: Once the quote is accepted, the transportation process starts and is carried out to completion.
In this system, a new quote is created for each shipment, eliminating the need for a formal contract. However, once the quote is accepted, the transportation process begins.
Contracted Transport: Long-Term and Recurring Transportation Needs
Contracted transport involves agreements with customers and agents who require continuous transportation services. These agreements ensure that transportation services are provided at regular intervals and for a predetermined pricing structure over a specified period. Contracts are customized based on factors such as transportation frequency, cargo specifications, and transport routes.
Contracted Transport Process:
- Defining the Contract/Tariff: Contracted transport is generally based on a tariff that outlines the pricing structure for transportation services. This tariff includes factors such as transportation distance, cargo type, transport frequency, destination country, and route.
- Pricing: The contract management process allows transport companies to calculate prices based on the contract and tariff terms. Prices vary depending on the agreement details.
- Defining Contract Conditions: The conditions outlined in the contract apply to every stage of the transportation process. These conditions cover transportation costs, payment terms, and timelines.
- Regular Transportation: Contracted transport typically requires a long-term and continuous transportation process. Agreements are established with customers or agents to ensure that transportation operations are carried out on a regular basis.
Contracted transport is a more predictable and cost-effective solution for meeting transportation needs over a specific period. This model also helps transport companies build long-term relationships and improve customer satisfaction.
Transapp Contract Management: Pricing and Process Management
Transapp Contract Management offers a user-friendly and flexible solution for managing both contracted transport and quotation-based transport operations. This module provides logistics companies with the following advantages:
1. Flexible Pricing Tools:
Transapp provides pricing tools that allow transport companies to determine prices based on transportation contracts and tariffs for each operation. Prices can be easily calculated based on factors such as cargo type, weight, destination country, transportation distance, and other parameters. This enables logistics companies to quickly determine accurate pricing for each shipment.
2. Contract and Tariff Management:
Transapp facilitates the easy creation and monitoring of transportation contracts and tariffs. Contracts are customized according to the criteria set by transport companies and structured with suitable terms for each customer or agent. These contracts ensure that pricing and payment terms are accurately managed for periodic transportation services.
3. Automated Calculations and Reporting:
With Transapp, transportation calculations based on contracts and tariffs are automated, eliminating the risk of manual errors. Additionally, every stage of the transportation process can be digitally tracked, reported, and updated when necessary.
4. Customer and Agent Interaction:
Transapp simplifies communication between logistics companies, customers, and agents. Contract details, payment terms, and transport routes can be transparently tracked and shared with stakeholders. This ensures that all parties remain informed throughout the transportation process.
5. Flexible Contract Terms:
Transapp allows transport contracts to be updated according to changing conditions, providing flexibility in transportation operations and increasing operational efficiency. This ensures that transport contracts remain valid and up-to-date at all times.
Conclusion
In road transport, both contracted transport and quotation-based transport serve as fundamental elements of logistics processes. Proper pricing and process management are crucial for both methods. Transapp Contract Management enables logistics companies to manage these processes most efficiently. With flexible pricing, automated calculations, and detailed reporting, you can optimize your transportation operations for both contracted and quotation-based transport.