Gainshare for Cost Management
A 3PL stores the rate contracts for its clients in the Contract Manager.
If the 3PL negotiates a lower rate contract for a client, the lower rate contract is also stored in the Contract Manager and becomes the active rate for the client.
The client's original contract rate become's the benchmark rate. Corsair subtracts the 3PL's lower negotiated rate from the benchmark rate and calculates the difference as savings.
The savings amounts are stored in Corsair so the 3PL can show the client the amount of money they've saved the client over a specific period of time.
Implement gainsharing
A 3PL can pursue and reach a gainsharing agreement with a client where the 3PL receives a percentage of the money they're saving their client - basically splitting the savings.
Here's how the 3PL sets it up:
Optional: Create a shipment charge plan template for the gainshare. When the shipment charge plan template is created, it should be given a relevant name such as Cost Management 50% Gainshare, according to the gainshare percentage.
A single shipment charge plan template can be re-used across multiple Service Agreements.
In the client's service agreement, add a shipment charge group for the gainshare. When adding the shipment charge group, the template created in step 1 can be selected as the charge template.
After the financial audit is resolved and the rates are finalized, Corsair generates the Carrier Invoice.
Note
The carrier invoice includes the gainshare charge.