Augusto Beato Says Shift to Dimension-Based Pricing Requires New Software

Augusto Beato of Portland SEO believes the LTL industry will greatly benefit from a new solution called the Dimensionalizer due to a shift in complex commodity class pricing to dimension-based pricing.

"This is good for LTL carriers as products in the same class can have very different weights, dimensions, and handling characteristics. Dimensional pricing makes the computation more accurate," said Beato about the solution by Target Freight Management (TFM).

Beato added that other than the dimensions of the handling unit, LTL operators also have to consider the usable space the unit takes up. Pallets that do not stack, or very wide pallets, can take up more usable space than their dimensions suggest, notes Beato, who is the CEO of Portland SEO.

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TFM President and CEO Mike Wagner pointed out that the shift from ‘straight class pricing’ to variable ‘density-based pricing’ have urged freight carriers to change the model they use for rate quotes. Consequently, this has led to some unforeseen charges for shippers.

As an example, Wagner pointed out that a shipment that has historically been considered to be Class 100 could move up to Class 300 or 400 based on its weight and dimensions – often tripling or quadrupling the price. But the shipper often doesn’t know about the change in class and cost until the freight is delivered and the bill is received, when it’s already too late to mitigate the negative financial impact.

“The Dimensionalizer allows shippers to quickly measure and catalog shipments with complete accuracy,” explains Wagner.

The system will weigh, measure and dim the shipment in under 10 seconds. TFM’s patented software uses APIs to seamlessly communicate this information to the Transportation Management System and the customer’s ERP.

After the shipper’s data has been collected and any frequently-used shipment sizes and weight are identified, TFM will use a user's profile to get quicker price quoting and to renegotiate agreement and volume-based discounts on the shipper’s behalf. The Dimensionalizer also photographs the freight from all angles and attaches those images in its system and to the bill of lading, which is invaluable support if one has any damages claims.