Analyzing Strategic Freight Usage

As you work to continually evaluate your freight costs, use the Freight Recovery analysis to evaluate your company's freight charges and the gap between what you are charging and what you are shipping for no charge.

Analyze the freight recovery rate performance using the following views. Each view contains sales information from the date range you selected when you built the analysis file.

Depending on the view you select, Closedspecific columns display with information for that view. For example, if you select the Overall view, the data in each column is for all transactions at a branch for the dates you selected when you build the analysis file. If you change the view to Customer, the data in each column is for all transactions for each customer, and the view contains a customer ID and customer name. Use the different views to refine what you see to better analyze the benefits you are receiving from using strategic freight on your orders.

Column

Description

Branch

The shipping branch of the order transactions.

Customer

The customer to which the freight was charged. This column displays in the Customer view.

Ship Via

The shipping method, such as Our Truck or UPS, that was used to ship the orders. This column displays in the Ship Via view.

Actual Freight

The total extended freight of all line items sold on orders at the branch during the period for which the analysis file is built.

Recommended Freight

The total extended freight charge if the strategic freight had been used on each line item sold.

Gap$

The difference in dollars between the freight that was actually charged and the extended strategic freight if the strategic freight had been used.

Recommended Freight - Actual Freight

The gap amount can be a negative amount if you have achieved more than the recommended freight.

Gap%

The difference as a percentage between the freight that was actually charged and the extended freight if the strategic freight had been used. For example, if 90% displays in this field, you have achieved 90% of the amount in the Recommended Freight column.

(Actual Freight / Recommended Freight) * 100

The gap percentage can be more than 100% if you have achieved more than the recommended freight.

To analyze strategic freight:

  1. Build the analysis file, if necessary.

  2. From the Maintenance > Price Maintenance > Strategic Pricing > Strategic Pricing Analysis menu, select Strategic Pricing Analysis to display the Strategic Pricing Analysis window.

  3. In the left pane, select Freight and Closedselect the information you want to see using the following fields and click Update.

    Field

    Description

    Branch

    Enter the ship branch, branches, or territories for which to search or orders.

    Select View

    Select the view that you want to use to analyze freight. The view determines which data within the analysis displays. For a description of each view and what it displays, see the explanations above.

    To change the view at any time, select a new view in this field and click Update to re-populate the table.

The transaction information that meets your criteria displays. The parameters included in the analysis file display at the bottom of the window.

  1. To save, print, e-mail, or view the information as a report, select File and the corresponding option.

See Also:

Strategic Pricing Analysis Tools Overview