System and Method for Optimizing the Loading of Shipping Containers
A system and method for optimizing the loading of a shipping container, optimizing freight costs, communicating ordering and shipping constraints to a customer, and continuously updating shipping costs while an order is being built by a customer.
1 . A method for building a container order for a shipping container, where in response to the selection of a ship-to location, of a shipping container, and of a quantity of an item by a customer, the method comprises:
a. identifying a constraint for at least one of the ship-to location and of the item, and communicating the constraint to the customer;
b. calculating the capacity utilization for the shipping container for the quantity of the selected item; and
c. calculating and displaying a cost of the item selected for shipping in the shipping container.
2 . The method of claim 1 , wherein calculating and displaying the cost of the item selected for shipping in the container includes:
a. calculating and displaying an item landed cost per item while the order is being built; and
b. calculating and displaying a net landed cost per container order while the order is being built.
3 . The method of claim 1 , wherein the method further comprises creating a purchase order incorporating the selected ship-to location, the selected shipping container, the selected quantity of the item, the cost of the item.
4 . The method of claim 1 , wherein the constraint for the ship-to location includes identifying existing incomplete container orders for the same ship-to location and offering the customer the option of joining at least one of the existing incomplete container orders.
5 . The method of claim 1 , wherein the constraint for the ship-to location includes identifying the container order as available for sharing.
6 . The method of claim 1 , wherein the constraint for the item includes identifying that the selected quantity of the item is less than a minimum order requirement for the item and forcing the quantity for the container order to the minimum order requirement for the item.
7 . The method of claim 1 , wherein calculating the space utilization includes calculating and displaying an amount of occupied space in the container and an amount of remaining, unfilled space in the container.
8 . The method of claim 2 , wherein calculating the item landed cost per item includes summing item cost and freight cost.
9 . The method of claim 8 , wherein calculating item landed cost per item further includes summing item markup cost and duty.
10 . The method of claim 9 , wherein calculating item landed cost per item further includes determining whether a consolidation fee is applicable to the container order, and if so, calculating the consolidation fee, determining whether a pallet fee is applicable to the container order, and if so, calculating the pallet fee, and determining whether a cross docking fee is applicable to the container order, and if so, calculating the cross docking fee and summing a consolidation fee, the pallet fee, and the cross docking fee.
11 . The method of claim 8 , wherein the item cost is calculated by applying a predetermined variable cost formula to the base item cost of the item.
12 . The method of claim 8 , wherein the freight cost is calculated by determining whether the quantity of items constitutes less than a container load and applying freight rates based on a container with less than a container load.
13 . The method of claim 8 , wherein the freight cost is calculated by determining whether the quantity of items constitutes a full container load and applying freight rates based on a container with a full container load.
14 . The method of claim 9 , wherein the markup cost is calculated based on data from a markup table.
15 . The method of claim 9 , wherein the duty is calculated as a percentage of the item cost.
16 . The method of claim 10 , wherein the consolidation fee is calculated based on data from a consolidation fee table.
17 . The method of claim 10 , wherein the pallet fee is calculated based on data from a pallet fee table.
18 . The method of claim 10 , wherein the cross docking fee is calculated based on data from a cross docking fee table and allocating the cross docking fee to each item based on the item's contribution to weight or volume of a partial cross docking shipment.
19 . The method of claim 2 , wherein calculating the net landed cost per container order includes multiplying in the quantity of items by the item landed cost per item.