When a shipment file is costed, "what-if" simulation can be made to any revenue discount. In addition to the wide range of simulation options available to model shipment cost.
There are two methods available:
1. Revenue
Detail, the best method, requires building the shipment file
with Tariff Revenue, discount, fuel surcharge, accessorial revenue, etc.;
populating the Rate Data window on the shipment entry screen.
If extracting historic shipments, this is done using the extract option
"Tariff Revenue Breakdown," or, if re-rating with Pricing/CIS, the
"No Revenue for Re-Rating" option.
After
processing the file with one discount scenario (or the historic discount in the
file), simply change the discount and enter an absolute minimum charge in the
Rate Data window on the shipment file Template, in the edit mode.
The Template will pass the new amounts through the entire file.
Structured or regional discounts and regional absolute minimum charges
can be reflected using the "magic wand" replace data button to pass
changes through the file, limited to certain ZIP Code or weight ranges.
Then, re-cost
the file to obtain a new profitability based on the new discount scenario.
If you use agents charging rates based on revenue, some costs may change
as well. The results will reflect a
new net revenue with proper accounting for absolute minimum charge, fuel
surcharge, accessorial revenues and allowances.
2. Net Revenue is an alternate method which can be used when the
shipment file contains only the original net revenue, without the rate data
detail. After the shipment file is
costed, on the Grand Total screen, select Modify Discount under Options, which
opens a window prompting for:
Current Discount - The discount on which the file's net revenue was
based.
New Discount - The new discount to be simulated.
When the window is completed, the Grand Total report is adjusted to add back the current discount and then take off the new discount. Care should be taken when using this option: It does not account for the shift to an absolute minimum charge, the presence of accessorial revenues, or any of the other revenue items which may affect the results, and is thus intended only as a "quick" try of other alternatives.
Updated February 2005