In­crease your rev­enue with Di­men­sional Weight Pric­ing

Di­men­sional weight pric­ing en­sures that large and bulky items are in­voiced ac­cord­ing to the space they take up rather than ac­tual weight. In or­der to max­imise rev­enue, a car­rier should com­pare ac­tual weight with di­men­sional weight and use the greater of t

Cargo Talk - - Contents -

IF YOU DON’T CON­SIDER DI­MEN­SIONAL WEIGHT WHEN PRIC­ING, AND IF YOU DON’T CHECK THE MEA­SURE­MENTS OF YOUR CON­SIGN­MENTS AU­TO­MAT­I­CALLY, YOU ARE MISS­ING OUT ON REV­ENUE THAT IS RIGHT­FULLY YOURS

Cus­tomer de­clared mea­sure­ments should be checked to en­sure that in­voices re­flect the ac­tual size of each ship­ment. Rev­enue Re­cov­ery is a term used to de­scribe the pro­tec­tion of rev­enue through au­to­matic di­men­sion­ing.

What is di­men­sional weight and how is it used?

Di­men­sional weight pric­ing was first in­tro­duced by in­ter­na­tional air car­ri­ers in or­der to make ef­fi­cient use of cargo space. It has be­come stan­dard in the trans­port in­dus­try and to­day is used by all ma­jor car­ri­ers.

The ob­jec­tive of such a pric­ing struc­ture is to en­sure that items are in­voiced based on the space they oc­cupy, not just their weight. The di­men­sional weight of an ob­ject is cal­cu­lated by de­ter­min­ing its cu­bic size and di­vid­ing this num­ber by a di­men­sional fac­tor.

The In­ter­na­tional Air Trans­port As­so­ci­a­tion (IATA) es­tab­lished a stan­dard di­men­sional fac­tor, how­ever com­pa­nies reg­u­larly choose their own fac­tor based on the av­er­age den­sity of their ship­ments.

Di­men­sional weight ex­ceeds ac­tual weight in a large num­ber of ship­ments.

If you have a high num­ber of low den­sity items that you price, based on ac­tual weight, there is a huge po­ten­tial for rev­enue re­cov­ery.

Max­imis­ing Rev­enue Po­ten­tial

Your ex­act po­ten­tial for rev­enue re­cov­ery de­pends on the goods you ship and your pric­ing struc­ture. While one com­pany may re­cover 1 ex­tra per par­cel, an­other com­pany can re­cover over 5 per par­cel. If you send a lot of high vol­ume, bulky prod­ucts that are low in weight, the po­ten­tial to re­cover rev­enue is much higher than if your av­er­age ship­ment con­sists of high den­sity ob­jects.

Get­ting Paid Prop­erly

Not only will you de­ter­mine the bill­able weight by weigh­ing and di­men­sion­ing ship­ments au­to­mat­i­cally, you will also dis­cover any dis­crep­ancy in mea­sure­ments pro­vided by your cus­tomer. Ship­pers of­ten don't have the time or ca­pa­bil­ity to pro­vide ac­cu­rate data and un­der-re­port­ing of num­bers is com­mon.

If the cus­tomer who de­liv­ered the ex­am­ple pack­age above mis-cal­cu­lated the length, width and height by 1 mm, the bill­able weight would in­crease by an­other 14 per cent af­ter dis­cov­er­ing the er­ror with an au­to­matic sys­tem. Ex­tra rev­enue gained through this ex­tra qual­ity check is money that would oth­er­wise have been lost.

Why is Au­to­matic Mea­sur­ing Nec­es­sary?

Even if you do mea­sure the di­men­sions of your freight, but you do it man­u­ally, you wonÊt re­cover all po­ten­tial rev­enue. Man­ual mea­sur­ing is prone to er­ror.

The logic of an au­to­matic sys­tem is based on the space an ob­ject oc­cu­pies and how you can stack it. When an ob­ject is not per­fectly rec­tan­gu­lar, the sys­tem cal­cu­lates the small­est rec­tan­gu­lar box that can en­close the ob­ject. If the di­men­sional weight of that the­o­ret­i­cal box is greater than the ac­tual weight, it will be used as bill­able weight. Data pro­vided by a Weights and Mea­sures ap­proved sys­tem is al­ways re­pro­ducible.

Pro­tect your Rev­enue and your Brand

No busi­ness can af­ford to just give their ser­vices away. If you donÊt con­sider di­men­sional weight when pric­ing, and if you donÊt check the mea­sure­ments of your con­sign­ments au­to­mat­i­cally, you are miss­ing out on rev­enue that is right­fully yours. In­vest­ment in an au­to­matic di­men­sion­ing and weigh­ing so­lu­tion and a switch to di­men­sional weight pric­ing is fool­proof.

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