Picking and Packing Charges by Product Tiers

Contents

Introduction

Key Capabilities

Advantages

How to Use

Define Tier Levels

Assigning Tiers to Products

Configure Picking & Packing Charges by Tier

Summary

Release Note

Release Date: January 14, 2025

Introduction

We are introducing a significant enhancement to the Warehouse Management System (WMS) that enables businesses to define picking and packing charges based on product classification through tier levels. This feature provides greater flexibility and accuracy in cost allocation by accounting for the unique handling requirements of different products, even within the same category.

By leveraging this feature, businesses can implement tailored billing structures using By Quantity or By Quantity Incremental methods, providing the ability to define different slabs for the same tier (Refer How to Use section for more details).

Key Capabilities

1. Tier Level Definition During Warehouse Setup
   • Users can define multiple tier levels when setting up a warehouse.
   • Bulk creation of tier levels is supported through upload functionality.
2. Assigning Tier Levels During Product Creation
   • Users can optionally assign tier levels to products during product creation.
   • Tier assignment ensures proper classification of products based on handling requirements.
3. Bulk product tier mapping is supported through an upload template
   • Defining Picking and Packing Charges by Tier Level
   • Users can configure B2C and B2B orders picking and packing charges based on tier levels.
   • Charges can be defined as flat charges or incremental charges by quantity for each tier.

Advantages

1. Customizable Handling: Users can tailor picking and packing charges to align with the unique needs of different products that might belong to the same category, providing flexibility in managing diverse inventory, reducing the risk of over or undercharging.
2. Accurate Cost Allocation: This feature enables precise cost distribution by aligning picking and packing charges with the specific handling requirements of different products. Businesses can avoid undercharging for labor-intensive items or overcharging for simpler products, ensuring fair and transparent pricing.
3. Operational Efficiency: Simplifies the process of assigning charges by allowing tier-level classification and bulk uploads, reducing manual effort and potential errors.

How to Use

Define Tier Levels

Step 1: Navigate to the Inventory module from the primary navigation panel.

Step 2: In the secondary navigation panel, click on the Tier Management submodule.

Step 3: Click the Create Tier button located in the top right corner. This action will open the tier form in the right panel.

Step 4: Fill in all the required details in the form, such as company name, Tier name, code and description.

 Step 5: Once the form is completed, click on the Add New Tier button. The new tier entry will be saved and will appear in the list under the Tier Management submodule.

Important Notes:

1. Once a tier has been created, it can be edited later if necessary.
2. The Company Name for which the tier was originally created cannot be modified after the tier has been saved.

 Assigning Tiers to Products

Step 1: Navigate to the Inventory module from the primary navigation panel.

Step 2: In the secondary navigation panel, click on the Product submodule.

Step 3: Create a new product or update an existing product.

• While filling in the product details, locate the Tier field.
• Select the appropriate tier from the drop-down menu to assign it to the product.

Step 4: Once the tier is assigned, click on the Create/Update Product button to save the changes.

 

Configure Picking & Packing Charges by Tier:

Step 1: Navigate to the Billing module for a particular customer for whom the tiers have been defined.

Step 2: Click on B2C/B2B Order Charges.

Step 3: Navigate to B2C/B2B Picking and Packing Charges from the options.

Step 4: Click on the By Tier option.

Step 5: From the drop-down menu, select the desired tier to configure charges for.

Step 6: Define the type of charges:

• By Quantity: Specify a range of quantities and their associated charges. For example, if you set $5 for quantities 1–5 and $3 for quantities 6–10, then an order with 6 units will have a picking/packing charge of $3.
• By Quantity Incremental: Define incremental charges. For example, if you set $5 for quantities 1–5 and $3 for quantities 6–10, then an order with 6 units will have a picking/packing charge of $5 for the first 5 units and $3 for the 6th unit.

Step 7: Add the charges and click on Save to finalize the configuration.

Summary

This feature addresses the varying effort required for picking and packing different products. By allowing different tier levels to be assigned to each product, warehouses can define picking and packing charges that accurately reflect the handling requirements. This ensures fair and precise cost allocation, improving operational efficiency and aligning charges with the actual workload. This tier-based approach empowers warehouses to manage diverse inventory more effectively, ensuring that pricing structures are both equitable and scalable.