Why it’s Time to Modernize Your Freight Allocation Management Process

With never-before-seen supply chain congestion and skyrocketing demand, space on ocean carriers is at an all-time premium. For freight forwarders, this means that keeping up with your allocation commitments and tracking progress towards achieving incentives is also more crucial than ever. The good news? New technology makes the traditionally tedious process a lot faster, simpler, more accurate, and smarter.

Discover the new Freight Allocation and Incentive Management extension for Magaya Rate Management, helping shippers meet their ocean carrier allocation commitments with better data visibility and control.

What are freight allocations and incentives?

Allocation and incentive management is a cornerstone of the carrier’s load planning process. Owning an asset takes careful planning to ensure the financial viability of that asset while balancing the needs of those shippers with whom they partner and the ever-changing challenges the market presents. To ensure commitments are met by both parties, a carrier may offer a Volume Incentive Program (VIP) to reward the shipper for their support. These VIPs are carrier-specific and typically for high volume shippers.

 

The Problem With Spreadsheets

Mastering your freight allocations and related incentives requires juggling and constantly monitoring a lot of data points from different places. While Excel certainly has its strengths, it also requires a lot of manual intervention, updating, and copy-pasting data from other sources. Not only is that a huge time-waster, but it leaves you vulnerable to error, plus it puts data in silos, leaving your key stakeholders out of the loop.

 

Data-Based Decisions With the Freight Allocation and Incentive Management Extension

Meeting carrier commitments and achieving Volume Incentive Program discounts takes careful planning. That’s why Magaya developed the Freight Allocation and Incentive Management extension for Magaya Rate Management, providing shippers with a more efficient way to meet their ocean carrier allocation commitments.

The Freight Allocation and Incentive Management extension for Magaya Rate Management gives shippers added visibility and control with a consolidated view of all allocation commitments in the Rate Management screen. With built-in dashboards and allocation data where users need it most, the extension provides better visibility and greater convenience to drive informed booking decisions based on allocation commitment performance.

Features include:

• Trade Definition: Per desired origin-destination roll-up strategy (port-port, country-country, etc.)
• Allocation Data Input: Upload your data via Excel at various time increments (yearly, monthly, weekly)
• Booking Data Consumption: Upload via Excel
• Rate Search Results: Provide visibility to commitment fulfillment progress
• Allocation Dashboard: Show commitment fulfillment progress with several filter options to view data in different ways (Carrier, Trade, Agreement, etc.)