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<ManualTopic ID="/baanerp/fm/onlinemanual/fm" xml:lang="en" TopicType="Overview">
   <Header>
      <Title>Freight</Title>
      <Keyword type="header" order="d1e486561">
         <Level1>Freight</Level1>
         <Level2>introduction</Level2>
      </Keyword>
   </Header>
   <AimSection ID="aim_freight">
      <Paragraph>The purpose of <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> is to plan and/or to subcontract the transportation of
		inbound and outbound goods, which helps you select the most cost-effective way
		to get goods in and out of the site at the correct times.</Paragraph>
   </AimSection>
   <GeneralSection>
      <SectionTitle>Functionality</SectionTitle>
      <List>
         <ListIntro>For this purpose, <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> offers the following
		  functionality:</ListIntro>
         <ListItemHead>Freight order control</ListItemHead>
         <ListItem>A freight order is, essentially, a commission to transport a
		  particular number of goods. To plan the transportation of goods, and to
		  subcontract the transportation of goods with or without transport planning, <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> must know
		  which goods to transport. This information is provided by freight orders.
		  Therefore, subcontracting and transport planning are based on freight orders. <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> creates
		  freight orders from originating orders or users create freight orders manually
		  in <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef>. An
		  originating order is an order from which a freight order is created, such as a
		  purchase order or a sales order.</ListItem>
         <ListItemHead>Transport planning</ListItemHead>
         <ListItem>In <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef>, transport planning is called load building. Load building
		  is the process of creating load plans for a group of freight orders. A load
		  plan is, essentially, a transport plan. A load plan provides you with
		  information such as: <List>
               <ListItem>Details about the goods to be transported</ListItem>
               <ListItem>Loading and unloading addresses, dates, and
				times</ListItem>
               <ListItem>The carrier that is to carry out transportation</ListItem>
               <ListItem>Transport costs</ListItem>
            </List>
         </ListItem>
         <ListItemHead>Subcontracting</ListItemHead>
         <ListItem>Subcontracting is the process of offering freight orders to an
		  external carrier for transportation. You can create load plans for the freight
		  orders and offer the planned loads to a carrier, or you can offer groups of
		  freight orders called clusters for which no load building is performed. Freight
		  order clustering is one of the main processes within the subcontracting
		  functionality.</ListItem>
         <ListItemHead>Carrier selection</ListItemHead>
         <ListItem>While performing transport planning and/or freight order
		  clustering, ERP Enterprise also looks
		  for the most cost-effective and efficient carrier services. Carriers are
		  selected by means of various criteria, such as prices, terms of delivery, the
		  available types of transport of the carriers (can the carrier provide the
		  appropriate type of transportation to transport the goods listed on the freight
		  orders?), routes, and so on.</ListItem>
         <ListItemHead>Transport costing</ListItemHead>
         <ListItem>During transport planning and/or freight order subcontracting,
		  the freight costs are also calculated. Freight costs are the costs of
		  transportation of particular consignments of goods that an organization must
		  pay to the carrier that actually carries out the transportation. Freight cost
		  calculation is based on factors such as the quantities of the goods, the rates
		  of the selected carriers, the type of transportation required, and so
		  on.</ListItem>
         <ListItemHead>Transport rating</ListItemHead>
         <ListItem>Freight rates are maintained in <Link href="/baanerp/fm/glossary/glossary#000038" role="glossary">freight rate books</Link> in <GUIRef href="/baanerp/tc" role="package">Common</GUIRef>. To determine
		  the transportation costs of, for example, a freight order line, <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> retrieves
		  the freight rate from <Link href="/baanerp/fm/glossary/glossary#000038" role="glossary">freight rate books</Link> defined
		  in the <GUIRef href="/baanerp/td/pcg" role="module">Pricing</GUIRef> module of <GUIRef href="/baanerp/tc" role="package">Common</GUIRef>. To
		  find the correct freight rate book, ERP Enterprise uses freight rate matrices. A freight rate
		  matrix is a group of attributes and values that serve as selection criteria for
		  a rate book. If the matrix attributes match the properties of a freight order
		  line, the rate book associated with the freight matrix is used to calculate the
		  transport costs for the freight order line.</ListItem>
         <ListItemHead>Invoicing</ListItemHead>
         <ListItem>
            <Paragraph>Most organizations have agreements with their customers and
			 suppliers on how much they can charge for transportation: the full amount they
			 had to pay to the carrier that carried out the transportation, some special
			 rate, or no charge at all. In <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef>, the amount for <Link href="/baanerp/fm/glossary/glossary#000054" role="glossary">freight costs</Link> invoiced to
			 the business partner is determined by the invoicing method defined for the
			 business partner. For further information, see <Link href="/baanerp/fm/onlinemanual/000030" role="manual">Invoicing methods</Link>.</Paragraph>
         </ListItem>
      </List>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Positioning of Freight Management</SectionTitle>
      <Paragraph>
         <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> is primarily intended for various types of companies that
		subcontract transportation to selected carriers, but <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> also
		supports companies that run their own fleet. Although this package does not
		focus on fleet management matters, such as fuel control, or the maintenance and
		costs of self-owned fleets, you can define such fleets and plan transportation
		for individual means of transport. <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> also supports centralized planning
		and subcontracting for organizations that work in a multi-site
		environment.</Paragraph>
   </GeneralSection>
   <GeneralSection>
      <SectionTitle>Business environment</SectionTitle>
      <Paragraph>Typically, <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef> is used by an organization's traffic or logistics
		department, which is the department that deals with transportation for inbound
		and outbound goods.</Paragraph>
      <GeneralSection>
         <SectionTitle>Shipping office</SectionTitle>
         <Paragraph>In <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef>, the traffic or logistics department is referred to as
		  shipping office. The shipping office's activities include transportation
		  planning and hiring carriers for inbound and/or outbound transportation.</Paragraph>
         <Paragraph>Some companies do not hire external carriers, but instead
		  leave all their transportation to their own forwarding service. Companies that
		  hire external carriers may or may not plan the transportation for these
		  carriers.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Planning groups</SectionTitle>
         <Paragraph>In the shipping office, individual planners are, usually,
		  responsible for transportation of specific types of goods or areas that require
		  specific handling.</Paragraph>
         <Paragraph>In large organizations, the shipping office is often
		  subdivided into several groups. These groups, rather than individual planners,
		  deal with particular types of goods or areas that require specific handling.
		  For example, one group can deal with overseas transport and another with
		  domestic transport by road. In <GUIRef href="/baanerp/fm" role="package">Freight</GUIRef>, these groups are referred to as
		  planning groups.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Multiple shipping offices</SectionTitle>
         <Paragraph>Very large organizations can have more than one shipping
		  office. In these cases, each shipping office is usually responsible for the
		  transportation of goods for particular groups of warehouses.</Paragraph>
      </GeneralSection>
      <GeneralSection>
         <SectionTitle>Multi-site environment</SectionTitle>
         <Paragraph>Various organizations, and not only the larger ones, work in a
		  multi-site environment. This means, that transport is carried out or initiated
		  in various sites. Such organizations require centralized planning and/or
		  subcontracting for at least part of their transportation, which implies that
		  the shipping office of one site performs planning and/or subcontracting on
		  behalf of one or more other sites within the organization.</Paragraph>
      </GeneralSection>
   </GeneralSection>
   <RelatedTopics>
      <SectionTitle>Related topics</SectionTitle>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/fmfmd" role="manual">Freight Management Master Data</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/fmfoc" role="manual">Freight Order Control</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/fmlbd" role="manual">Load Building</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/000054" role="manual">Subcontracting</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/fmfrc" role="manual">Freight Rating and Costing</Link>
      </RelTopic>
      <RelTopic>
         <Link href="/baanerp/fm/onlinemanual/fmfri" role="manual">Freight Invoicing</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>