Fuel prices fluctuate on a regular basis. A factor which has a direct impact on your business. How do you make sure that the changing costs don’t affect your already tight margins? Or that your prices are up-to-date and you can manage surcharges? This is where the Advanced Fuel Clause Surcharge functionality comes into play. In a previous blog, we have already talked about how to process increasing fuel costs in your software. This functionality is a powerful tool designed to enhance precision in handling fluctuating fuel costs.

Advanced Fuel Clause in 3PL Dynamics

The purpose of the Advanced Fuel Clause Surcharge functionality is to provide a flexible mechanism for managing the impact of changing fuel prices on logistical costs. By defining a base price and implementing configurable rules, you can adapt to the dynamic nature of fuel costs. This ensures accurate and responsive adjustments.

Scenario 1 – Fuel price change method – Match

For the scenario above, the actual fuel prices as shown as part of the “Actual fuel price” list have been used as a base for the calculation. To trigger the calculation of the “new” fuel surcharges, the user selects the date from which the fuel surcharge needs to be calculated. The result can be found in the image below.

NOTE

In the above example a calculation method of “Last” has been used. In case of the usage of “First” the “Price per date” value on 7-10-2023 would have been 1,02EUR and on 14-10-2023 would have been 1,15. For the other options the price per date on 7-10-2023 would have been 1,28571EUR [Average], 1,02EUR [Minimum], 1,84EUR [Maximum].

Scenario 2 – Fuel price change method – Any

In the second example a calculation method of “Any” is used. In this case the percentage will increase immediately upon any change in the fuel price.

Scenario 3 – Fuel price change method – Main fuel clause reference

The actual fuel prices and the main fuel clause surcharges are the same as highlighted as part of scenario 1. The result in case a main fuel clause reference have been specified can be found below.

Scenario 4 – Fixed percentage

In case no further calculations and validations are required and hence if the required fuel clause percentage is a fixed quantity the calculation method “fixed” can be used. Updating the calculation method to “fixed” will enable the fixed percentage field. Triggering the calculation of the fuel clause percentage will, in this case, apply the fixed percentage that has been specified. Any other fields that are part of the setup tab will be ignored.