CartonCloud can automate the calculation of agreed charges to your customers by utilising the Customer Charges features. Customer charges can be created for a group of Customers who share the same charges, can be duplicated and amended for Customers who share the same charge structures but have different charge values or can be setup uniquely for a single Customer if required.
Customer Charges are made up of 5 main elements;
- General Charges that relate to a Consignment, Sales Order, Purchase Order, Storage Period and Invoice
- Adhoc Charges that relate to Purchase Orders, Sales Orders, Consignments and Run Sheets
- Storage Charges
- Handling Charges for both Inbound and Outbound handling
- Rate Cards for determine Consignment based Charges
The below articles provide details of each of these areas and explain the fields and options for each.
The question is what sort of charges does Carton Cloud calculate and how are they calculated? So I'll start by explaining it from a transport perspective because there's difference and warehousing in this. With transport, you've typically got your standard delivery rate. Now this is normally based on the, what we call a rate zone, which is kind of like delivery runs, I spoke about before, how you've gotten different areas. You also have different areas for charging.
So in Sydney for example, at Roving, pretty much the entire city itself, until it started becoming rural areas, was considered the Sydney Metro Rate Zone. So what that meant was that any job going to any place within Sydney would always be priced out at the same rate. Now when the jobs come through to be calculated, in terms of price, you will have rules set up like, for this customer we charge $4 per carton. And it will go in there and it will go, "Okay, I'm charging for this customer. I'm going to this area."
The calculation logic will then figure out which rate card to use and how to price that job. That's sort of the standard way of charging. In addition, you also have other methods you can use, such as how many hours it took. How far you drove. And on top of that you can also have additional charges on the top of it like a good one would just be working on recently is waiting time.
So you might have a standard delivery charge of, I don't know $15 to go to this place. But if you're waiting for more than 15 minutes, you might want it to start charging $10 every 15 minutes. So you'd do that through what we call ad hoc charges. Now the reason we call it ad hoc charges is because they're completely configurable. People can call them whatever they want. They can add them. They can remove them. They can have an ad hoc charge called, "I don't like this guy." And they could put $100 against it and when the driver gets there we could say, "Yep, one, I don't like this guy and charge it." And that guy's going to get a hundred dollar bill because that guy doesn't like them.
I've actually seen dickhead charge in someone's account under ad hoc charges before. Like this is the sort of shit people do. So that's a way that you can apply additional pricing over and above the standard pricing. Then you've got this other thing called fuel levy. Fuel levy is kind of a weird concept if you've never been in transport before. But what it is most transport companies, the rates that they give you are based on the fuel price being at a level.
So I might tell you it's gonna cost you $10 to get this box from here to here if the fuel price is $1.20 per liter, right? When the fuel price goes above $1.20 per liter, let's say it goes to $1.25, I'm going to charge you that price plus another 2%. And if it goes to $1.30 a liter. I'm going to charge you that price plus 10%. So fuel levy is implemented by transport companies to cover their costs with the changes of fuel price.
Now we have had a case where a client of ours in Sydney actually has a negative fuel levy. So they quoted their customers based on a price of $1.20 per liter. The price then went below that and so they now discount what they charged them with this fuel levy. It's crazy but that's what they've done.
So fuel levy, basically what you do to calculate fuel levy is you add all the other charges together and then the way that you can figure it is you might say, "Okay, I've got a fuel levy of 5%." And then it will go through and go, "Okay cool," and it will add another charge to that order for 5% of the other total. And that's considered fuel levy.
Now, that's transport charging. On the warehousing side you've got charges for, again you've got ad hoc charges but this time they would normally be done on things like ... So let's say you receiving an order off a truck, you might have an ad hoc charge for wrapping a pallet. If you're unloading a container, and you're taking lots of boxes and putting them on pallets and the wrapping them, you've got to cover the cost of that pallet wrap that you've used. So you would have an ad hoc charge for pallet wrap.
You might also have an ad hoc charge for relabeling boxes as they come in because they might have come in with Chinese labels on them or something and you want them to all have English labels. So the client would have said to you, "Relabel all these." And you would say, "I'll charge you a dollar per box." And then you put in, okay, I've relabeled 50 boxes, and it prices that.
You've got those sorts of prices. You might have prices in there for unloading a container itself. You might have different rates for unloading a container based on whether the stock inside the container is on pallets. Because if you think about a container when it comes through from somewhere like China, you can have the pallets just all sitting on the floor inside the container. I'm sorry, you can have the boxes all just sitting on the floor inside the container and then you've got to physically lift them as a person and move them over and put them on a pallet and then stack them all up, or you might have them on pallets inside that container.
So of course, the amount of work that's required to unload the container varies enormously depending on how the stuff's been stacked. So you would use ad hoc charges there. In addition, you have what we call item-based charging. Now this is, for stock that is just coming in, this is what we call "put away" fees. So I'll then charge you for handling this pallet into my warehouse and putting it in this location because that's taking one of my guys to drive a forklift to do that.
So you'll have rates and things like that loaded to say, if we put away a pallet we charge $3.50. If we put away a single box we charge $1.20. These sorts of things. Those same rules apply on outgoing too. So most people when you're packing an order to send out they might have a per order charge of $5. They might then have a per box charge of $0.40 for actually picking the box off the shelf and them putting it in the order. The might also have charges for wrapping pallets if it's a large order.
Again they might have charges for relabeling on the way out if that's something that they're doing. So those are all the kinds of charges that you can get from the purchase orders themselves or to so. And the very last one, which is part of warehousing is storage charging. So when you've got a warehouse and you've got lots of different client's goods in there and you are storing them all, you have to charge them for that storage space because obviously space isn't free. You're paying rent for this huge warehouse and you need to cover that charge.
So there's different ways of charging storage. You can charge storage based on how many of your pallet spaces have been taking up. You can charge it based on the total quantity of of all their products added together and then you might just say, I'm going to charge you a dollar a box. You don't even care where they are in the warehouse anymore. You just charge them based on that.
So we've got a lot of different options around how you charge storage. How often you charge storage. Most people do it on a weekly basis. So every single week, it'll be like we might charge you $3.50 per pallet, per week. And then the system will go through and figure out how many pallet spaces were in use during that week and it will make a charge based on that.