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Transportation costs appear too high/low
PROBLEM: The costs as they appear in the scoreboard do not match what you are expecting.
DISCUSSION: First, the reference data costs are market estimates and are intended to be adjusted up or down to match your business.
SOLUTION: We should walk through all the things that might impact transportation costs:
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Demand at the customer (left click on a customer and open inspector on the right)
- Is your total demand correct and the units in weight?
- Do you have a local "Average order size" at each customer--this will impact LTL and parcel costs as it sets the weight break.
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On the lane
- Do you have the right mode and is the lane pointed in the right direction?
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In the product configuration panel (Scenario Selector>>Configuration>>Products)
- Do you have the right units per shipment/container/truck -- this is essentially the weight for each mode
- For LTL lanes, have you set the freight classification?
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In the transportation configuration panel (Scenario Selector>>Configuration>>Transportation)
- Check the discount factor -- you can use this to scale costs up or down and match your costs to the market averages (NOTE: Don't be worried if you are above or below market, this is normal)
- Check the minimum shipment quantity
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