Article structure:
What is Share of Business?
Why do we need Share of Business?
How to use Share of Business in Pando?
Indent distribution count: How is it calculated?What is Share of business?
Share of Business(SOB) is a functionality that enables Pando to distribute indents for a given lane among different Transporters based on proportions that have been configured to be assigned. For any lane, transporters can offer bids that vary across price and availability. This translates into a need for a process that identifies and assigns indents to the right transporters to ensure that all their contracts are fulfilled while ensuring overall cost benefits for the Shipper. With SOB, this can be automated—both manually and through Optima.
Why do we need Share of Business?
Share of Business(SOB) works based on the fact that a shipper sets preferences for Transporters based on the cost, availability, and dependability.
Let us assume that for a lane between a Source and Destination, say London and Manchester, there are five transporters. Each of these transporters offers a bid. These bids are categorized as L1 to L10 with L1 being the least bid and L10 being the highest. For any given lane, every transporter offers bids that can be assigned with values ‘L(n)’ with L1 being the lowest bid and L10 being the tenth lowest and so on.
However, the ability of all of these transporters is finite, and at any given time their capacity to to service all the indents that have been created is limited. This usually boils down to the fact that a transporter while offering the lowest bid may not be able to service all the indents assigned owing to one of various factors such as wrong vehicle type, small fleet, or even capacity saturation. This means the L1 bidder is not always available. And that means a few indents will have to be allocated to L2, L3, L4 bidders and so on.
For the shipper, it is important that they spread their business across different transporter networks in order to build redundancies and avail best prices. Share of business(SoB) helps implement this by allocating proportions to different transporters, and then, enforce proportions by managing the assignment count of indents to each transporter.
How to use Share of Business in Pando?
Share of Business can be set up in one of the following configurations:
A) Via Manage:
For accounts that have configured the Share of Business functionality via the Manage module, you can enforce SOB on your indents through the Data Manager. Here’s how:
Go to > DATA MANAGER and select CONTRACT TSD MATRIX from the drop down. This is the page where you can upload your contracts and enforce the Share of Business.
Click the dropdown and download the Sample format file.
Fill in the necessary fields— Source, Destination, Transporter Ref Id, Vehicle-type, & Ratio and upload it back to Pando by clicking Bulk Upload and selecting the updated file.
Once the upload is completed, you will be presented with the Success notification that indicates the completion of the operation and the number of records that have been created and the ones that have been rejected.
To identify the files that have failed and to understand the reason behind their failure, click . This downloads the rejection list. The rejection list file contains the reason for rejection of a record. Fix the reason behind the import failure and upload the file back to Pando to finish uploading all material into Pando.
Once your upload is successful, you can find the SOB on the Contract TSD Matrix page.
Indent distribution count: How is it calculated?
The proportional assignment of Indents to each transporter is determined on the basis of two factors— Past Assignments and Preference Ratio. Based on this ratio, every time a new indent is created, the Contract TSD Matrix ascertains which transporter the Indents needs to be assigned to.
Once the assignment is recorded in the system, it is added to the Indent Distribution Count. Based on this, the next Indent will be assigned in such a manner that the ratio is maintained.
For example, if there are 2 transporters X & Y and a ratio of 6:4, this means 60% of all indents will go to Transporter X while 40% of all indents will go to Transporter Y. However, the indents are distributed in real-time and will adhere to the ratio set in place. Let’s say there were 10 indents that were created. In that case, this is how the indent distribution count would appear.