Invoices: Freight Invoice Enhancements

Summary

On November 1 2021, we will be rolling out a new methodology in how we bill your freight. This will go into effect for the October 2021 invoice period.

This improved process will provide greater transparency of freight cost actuals and a reduced number of monthly freight adjustments due to cost variances and carrier billing latency.

The detailed invoice can be found within eFactory → Services → Invoices

Key Enhancements

  1. Greater visibility into the freight charges.

    1. Current: we provide a single value of the freight charge per package / order.

    2. New: we will also provide the breakdown by Transportation Charge, Residential Fees, Delivery Area surcharge and 7 other relevant categories of charges.

  2. Easier access to the freight charges detail.

    1. Current: we provide a summary of freight charges in a spreadsheet with our monthly invoice.

    2. New: the freight charges detail will be available in eFactory as an application to be used as and when needed. Customers can query and download information like other eFactory applications. 

  3. Improved accuracy of the freight charges.

    1. Current: we provide, in most cases, estimated freight charge for a package / order as we ship the order. Since this is only an estimated charge, it does not accurately reflect the real charge invoiced for the order. At month end, having received a carrier invoice for most of the orders, and having determined the difference between the estimated and the actual charges, a freight adjustment is calculated, as needed. Then the details for the estimated charges and the Adjustment charges are provided separately to the customer on the invoice. This makes it difficult for customers to determine the real freight charge for an order.

    2. NEW: Now the invoiced freight charges will be based solely on the carrier reported charges which will drastically reduce adjustment on subsequent invoices so it will provide more accurate and clear charge for a package / order. There may still be reasons for adjustments but these instances will be greatly reduced.

FAQs

  1. Are my invoices going up or down? Neither, you will be paying the same, contracted amount but with better visibility into what you are paying for.

  2. Will I see all cost elements associated with a shipment? We will categorize cost elements into 10 different categories. Unfortunately, we cannot show every detail of a particular shipment because some carrier invoices contain up to 240 categories of cost elements. We’ve determined the most important cost elements to carve out individually but had to group many secondary elements into larger buckets.

  3. Where can I see the new freight invoice details? eFactory → Services → Invoices

eFactory: Freight Charge Details

  1. Navigate to the Freight Charge Details

Go to: Services > Administration Tasks > Invoices (left hand navigation) > Freight Charges

The Freight Charges section can only be viewed by eFactory users who have appropriate access. The access is controlled by the designated account administrator(s) at your company. Reference the eFactory user access article.

2. Freight Charge Detail Categories

Within the Freight Charge section, you can get a detailed breakdown of the various fees that make up your invoice price. The following categories are now included in the freight charge details.

Categories

Description

Invoice price

Sum of all freight fees for each order that you are being billed for.

Transportation charge

The base carrier fee for shipment.

Fuel charge

Carrier fuel charges are dynamically calculated to account for the fluctuations in fuel costs.

Delivery area surcharge

Small parcel carrier fees for deliveries to higher cost-to-serve zip codes.

Residential fee

Residential shipping fees help cover the cost of the additional labor required when a carrier picks up or delivers a freight shipment to a non-commercial area.

Signature required fee

Fee if your package requires the carrier to collect a signature from the recipient.

Peak surcharge

Peak Season Surcharges (PSS) refer to temporary surcharges that major shipping carriers will apply to their base rate to cover increased operational costs during periods of high demand.

Government charges

Government fees collected for importing or exporting of goods.

Adjustment charges

Balance of fees charged from a past carrier invoice for the same shipment.

Residential adjustment charges

Balance of fees charged from a past carrier invoice for the same shipment.

Other charges

All major carriers have >100 different types of charges and outside of the most common fees listed above, the remaining are grouped here.

Comments

Open field managed by the DCL Transportation team.

3. Additional Order Details

You can expand the Freight Charge view to see additional order details. Select All Columns (see below)

Below is a list of additional order details.

  • Reference #: Includes Order # OR Return #

  • Tracking #: Carrier service tracking #