Margin Strategy
Control over a carrier and lane strategy is essential for encouraging adoption and facilitating more digital bookings.
Parade will roll-out more types of margin strategies over time to help our customers make more dynamic decisions automatically.
This relies heavily on the broker's risk profile for a START and MAX price for pricing the load. It is up to our customer's to decide the appropriate risk profiles to commit to for operating their business and incentivizing carriers.
Notes on implementation:
Margin Strategy rules can be bulk uploaded via CSV. Contact support@parade.ia for further details.
Pricing Strategies that use Customer Name or Customer ID matching are case-sensitive. As such, capitalization should also be taken under consideration when configuring these integrations.
e.g: if your strategy is configured with Customer Name "example", and the Load has a Customer Name attributed to it as "EXAMPLE", the Load won't match to the Pricing Strategy when imported into Parade, and as such won't have it's price populated by your Margin Strategy.
Start Buy Strategy
This is the default option for book now. This simply takes the "Start Buy" price of a load and offers that all-in rate for carriers enabled for book now with a matching smart rule.
Fixed Margin Strategy
This rule applies a fixed margin strategy for the carriers and loads that match with it. The rate can be computed off of user-selected fields.
Computation of rate
Parade rounds down to the nearest dollar when computing the offer rate.
(100% - FIXED_MARGIN%) * SELECTED_BASE_RATE
—> `Rounded DOWN to the nearest dollar`
The selected basis can be one of the following:
Start buy (starting purchase price)
Max buy (top spend)
Customer rate (customer's purchase price)
Prioritization of rules by class
There are two classes of rules:
Global rules - rules that apply to any carrier
Carrier-specific rules - rules that apply to a single carrier
Carrier-specific rules ALWAYS take precedent over global rules.
Example Scenario:
Broker creates a global BN Smart Rule for a start-buy strategy on a VAN lane for all carriers
Broker creates a carrier-specific BN Smart Rule with a 5% fixed-margin strategy on a VAN lane (i.e. for Carrier A)
A new load (Load X) matches both BN Smart Rules
Parade resolution: Carrier A is offered a price with a 5% fixed-margin (using the carrier-specific rule)
Prioritization of rates within a rate class
Prioritization of rates occurs within the same rate class. There can be multiple rules within a rate class that will yield different offers for the carrier.
Parade will always take the higher price to offer to the carrier as a reward.
Rationale: The rules are treated as pro-active incentives to enable and reward carriers.
Example Scenario:
Broker creates a BN Smart Rule for a fixed-margin of 5% on a VAN lane for the carrier
Broker creates a BN Smart Rule for a fixed-margin of 10% on a VAN lane for the same carrier
A new load matches both BN Smart Rules
Parade's resolution: Parade will take the higher all-in rate for the carrier. (e.g. $500 vs $550, the system will choose $550)
Expiration of offers
When a BN SmartRule is deleted, the associated offers out to carriers will be expired within a minute so that carriers cannot book with the smart rule.
Creation of offers
When a BN SmartRule is created, all outstanding matches with the carrier are re-evaluated for an updated offer.
Have additional questions?
Email: support@parade.ai