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  • Kewill - FedEx consolidation discount

    Hi all,

    In OTM6.0-Kewill integration, FedEx rates are returned from kewill during bulk planning and parcel shipment is created in OTM. These rates are based on shipment details only.

    FedEx also gives some consolidation discount based on total volumes executed on a given day. This is decided based on total volumes sent to same ship-to location on a given day.

    Since OTM rate shipment on real-time basis, can this FedEx consolidation discount be handled inside OTM? If so, how?

    Regards
    Nipun
    Nipun Lakhotia
    Manager, EY

  • #2
    Re: Kewill - FedEx consolidation discount

    Hi Nipun

    How did you handle this scenario?

    Did you get the context as in 100 weight scenario with kewill? Does kewill support 100 weight rating to OTM?

    I verified an order with wt more than 200 lb, but I dont see any discount getting applied. Need some help here.

    regards
    Vipin

    Comment


    • #3
      Re: Kewill - FedEx consolidation discount

      Confirm with FedEx/Kewill whenthe 100wt bundling occurs. In the past this was done at the end of the day during Kewill/FedEx "closing". IIRC this was done to include ALL shipments to a certain location. e.g. 1 box at 50lbs was sent to 123 Any St. Dallas Tx and then 10 more boxes were sent through out the day to the same location at 5-150 lbs a piece. (All add up to meet the negotiated minimum weight.) FDX would then consolidate these shipments and the results would only be seen on the bill. The effort required to go back into OTM and update this information would, obviously, be extensive. Also, just FYI, the rates provided during RATING could be different than those being produced during shipping, due to similar scenarios, such as on the fly 100cwt bundling. Slippery slope.
      Just to make matters more convoluted, the rates provided by the FedEx Server, regardless of the 3rd Party Shipping System, (Kewill, etc) are considered courtesy rates and FedEx ABSOLUTLEY does re-rate all packages and applies their own rates to the findings. For example, assume a scale is off or the dimensions are wrong during the shipping process and the resulting rate is $25. Once the parcels are tendered into the FedEx Parcel Stream, FedEx re-weighs and dimensions the parcels and THEN applies the negotiated rate to the bill. Included in the bill are any accessorial rates not applied at the shipping system. e.g. Oversized, Additional Handling, etc. To place the proverbial chery on top, during the actual delivery of the parcel, if the devliery point is deemed as a Residence, an additional "Residential" fee may be applied.
      Just my 2ยข but if you're trying to match the Carrier's bill exactly, you're going to have one heck of a time. Thus the "courtesy rate" name. Great for "rate shopping" but no so much during rate vs bill reconciliation.
      Good luck!
      Darren
      The day I quit learning is the day my soul will die.

      Comment


      • #4
        Re: Kewill - FedEx consolidation discount

        Darren,

        Thanks for your response. I am same discovery path as you suggested to find out how to match OTM invoice with the fedex invoice. I understand that Fedex is doing hundred wt discount on same customer address and is also applying the weight as well uniformly.

        Two problems:
        1. OTM sends the request to Fedex through out of the day
        2. At the end of the day, we dont get any msg back.

        Thus we are relying only on the consolidated invoice to achieve this. How did you overcome this challenge. Please enlighten.

        Comment


        • #5
          Re: Kewill - FedEx consolidation discount

          CB,
          What's the purpose of your effort? To show the exact invoice amount in OTM that FedEx is billing? Or, are you trying to use the freight pay module in OTM?
          The day I quit learning is the day my soul will die.

          Comment


          • #6
            Re: Kewill - FedEx consolidation discount

            Originally posted by Darren M View Post
            CB,
            What's the purpose of your effort? To show the exact invoice amount in OTM that FedEx is billing? Or, are you trying to use the freight pay module in OTM?
            Purpose is to first let OTM show the same rating as what Fedex is billing to us via kewill. I know its gonna be hard to do as kewill is responding per box basis - whereas our requirement is to get the consolidated hundred wt rate for entire day's shipments .

            Second part of requirement is to receive the consolidated invoice and pay via OTM freight pay module.

            Comment

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