Payment per ton now available on the Platform. GAME CHANGER FOR THE AGRICULTURE INDUSTRY
A new functionality that can be very useful for many companies is now available on our Platform. It enables settlements per ton of the transported cargo, which will be helpful for many suppliers and carriers, especially those transporting loose materials.
The new functionality is the result of discussions with many shippers and transport companies as well as careful observation of the market needs.
CargoON listens to specialists from specific industries who have individual needs. Together with them, we seek the best solutions that will deliver the expected business value. Payment per ton will simplify daily processes and reduce the workload associated with managing the supply chain, both in terms of individual collaboration with carriers and on the spot market..
The global agriculture supply chain management market was valued at $0.78 billion in 2021 and is expected to reach $2.1 billion by 2031, growing at a CAGR of 9.9% from 2022 to 2031.*
🟢 Agriculture supply chain
The agricultural sector is one of the largest industries in in the world. Market leaders in the agro and food sectors transport key raw materials and semi-finished products essential to the global economy on a daily basis. Most of them are bulk materials, such as grain, fertilizers, or feed, and are settled based on the weight in tonnes recorded at the point of unloading or loading. Payment per ton is also a widely used type of settlement in other industries, such as chemical, construction, or metalworking. According to market research conducted by CargoON with industry experts and logistics managers, the majority of companies settle based on weight, rather than a flat rate per haulage.
Payment per ton transactions account for 60 to even 90% of all transactions for bulk materials. Such information comes from individually conducted interviews with our partners from the agricultural, food and construction industries.
🟢 How does it work?
Settlement per ton is available for freight with a specified loading and unloading location, without intermediate loading or unloading operations. It is possible for freight with a maximum of one defined load, transportable on vehicles intended for the transportation of bulk materials:
- tipper
- walkingfloor
- silos
Choosing a ton as the settlement unit enables to determine the unit rate per ton and specify the settlement basis, which depending on the order conditions will be the weight at loading or unloading.
The platform supports both the offeror and negotiating carriers in the process of introducing the ton rate. It also allows for the auxiliary conversion of the ton rate to an approximate full course rate – based on the declared load weight or payload. All steps of order execution are visible on the Platform: starting with obtaining transport offers, through transaction acceptance, issuing and agreeing on order conditions, to the actual transport and settlement, finally offering the order summarized by the exact value based on reported weights.
- Robert Kutera
- Product Manager at CargoON
- –We realized that this is a change that the market has been waiting for, and what’s important – no competitive platform provides such a comprehensive solution supporting this type of settlement. It was a big challenge for our teams. 14 development teams worked on implementing payment per ton. This functionality may seem small but it is actually a game changer in the industry.
🟢 How to enable this option?
Check how easy it is in our instructions!
🟢We are changing for you!
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*source:
https://www.alliedmarketresearch.com/agriculture-supply-chain-management-market-A1457
