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Charging for Space Worth its Weight in Gold size of an object. not just their weight. The international Air Transport Association (IATA) established a standard dimensional factor, however companies regularly Length x width x height Dimensional factor Domestic: 6000 cm International: 5000 cm 3 / Kg (194 in/lb) 3 / Kg (166 in/lb) Some Definitions heavy but regular in shape and easy to stack light but bulky and difficult to stack invoicing. same to ship? www.mt.com/ind-catalog-tl Transport & Logistics Transport & Logistics Increase Productivity with High Performance Weighing & Measuring Dimensioning, Weighing & Scanning Buyer s Guide White Paper White Paper Increase your Revenue With Dimensional Weight Pricing Automatic Pallet Dimensioning An Investment that will Make You Money Dimensional weight pricing ensures that large, bulky items are invoiced according to the space they take up rather than actual weight. In order to maximise revenue, a carrier should compare actual weight with dimensional weight and use the greater of the two as billable weight. In addition, customer declared measurements should be checked to ensure that invoices reflect the actual size of each shipment. Revenue Recovery is a term used to describe the protection of revenue through automatic dimensioning. Read on to discover more about how to maximize your revenue through dimensional weight pricing and automatic measuring. The slow-down in the world s economy has had a large effect on the import and export market. This in turn has resulted in adverse impacts on the express business. 2009 saw the lowest level of transported freight since 2002. In such times companies either sink or they take action in order to stay on top. A natural first thought is where can we cut back? However, in a downturn the way to beat the competition may lie not in cutting back, but in making key investments. What is dimensional weight and how is it used? Dimensional weight pricing was first introduced by international air carriers in order to make efficient use of cargo space. It has become standard in the transport industry and today is used by all major carriers. The objective of such a pricing structure is to A truck will either reach its limitation in volume or its limitation in weight and when it does it can hold no more. Dimensional (or Volumetric) Weight Pricing compares actual weight with dimensional weight and uses whichever is greater as billable weight. This pricing structure allows the freight transporter to get the most out of the space available. Investment in an automatic weighing and dimensioning solution allows transport companies to efficiently manage transport costs and capitalize on their most valuable asset space. The system will accurately measure any item, determine the billable weight and update an invoicing system within seconds. ensure that items are invoiced based on the space they occupy, The dimensional weight of an object is calculated by determining its cubic size and dividing this number by a dimensional factor. LFT i i choose their own factor based on the average density of their shipments. Dimensional weight is compared to actual weight and the greater of the two is used as billable weight. Carriers lose the most money on big, bulky freight and so there is huge revenue potential for companies that either charge by weight alone or have a set price for pallets. A pallet loaded with gold bars will have a higher actual weight than dimensional weight and should therefore be charged for based on actual weight. A pallet loaded with something lightweight and bulky will be charged for based on dimensional weight. Although one pallet weighs significantly more, the lighter pallet takes up more space in a truck and is difficult to stack. The only way to fully maximize revenue potential on the space you provide is through automatically weighing and dimensioning your pallets and invoicing according to the volumetric Dimensional weight formula: Typical dimensional factor: Should these parcels cost the Actual weight How much an object actually weighs in kgs or lbs Dimensional (volumetric) Weight Cubic size of an object divided by a dimensional factor Billable (chargeable) Weight Whichever is greater, actual weight or dimensional weight. Is used for www.mt.com/logistics-library-tl METTLER TOLEDO Group Industrial Division www.mt.com/contacts www.mt.com/ind-tl 09/2017 METTLER TOLEDO. 30327641 MarCom Industrial