Being a part of the logistics and transportation industry, it is mandatory to sign tariff agreements against transport orders. These contracts help safeguard the mutual interests involved in the transportation request from your customers. Businesses can automate tariff agreement generation and customize them for their clientele with the help of a transport management system provided by PL Solutions, a premier ERP consultancy firm.
Similar to the proforma invoices generated in the case of physical goods, a tariff agreement plays the role of confirming the pricing considerations and scope of service to avoid any dispute between the shipper and the client in the future case of adverse situations like a breakdown. It also helps establish the responsibilities in case of such conditions. This makes it extremely necessary to sign tariff agreements.
The tariff agreement covers two of the most important transportation factors: the estimated time period within which delivery of the goods will be completed and the route followed by the truck. Both of these aspects are complementary to each other and allow the customers to understand their priority in case of payloads other than full truckload (FTL.)
They also contain all responsibilities on the part of the shipper in case of parcel / full damage to the consignment and late delivery. Shipping insurance policies are also a part of this consideration.
Many goods require the shipper to maintain favorable storage conditions inside the truck, right in the case of edible items and medical supplies. The tariff agreement also takes into account the value addition provided by the logistics partner and adds the cost incurred to the building amount as specified by the shipper.
The biggest benefit of using a transport management system to enable automated tariff agreement generation for your customers is that they can create tariff estimates without your help. Generally, every logistic company provides their customers with a special quote for a given time period. The TMS solution will use the static conditions to generate billing amounts based on the customer’s variables.
The inventory transit details synchronized with the warehouse management system inventory control module to give a crystal clear vision of inventory in the pipeline. This results in great convenience for your customers as they can make better business decisions.
All shipping tariff data is stored on your central database to help maintain record keeping and use it for reference purposes. These records can prove to be useful for cross-checking during financial audits and serve as proof in case of any discrepancies.
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