Introduction - What is Route Payment Basis?
With Mover TMS, you’ve already optimized your last-mile deliveries. You can plan routes, track deliveries in real-time, and automate much of your workflow, making it easier to stay organized and in control.
However, driver and contractor payments can still be a time-consuming task. Tracking payment agreements manually in external spreadsheets can disrupt your streamlined process.
That’s where Route Payment Basis comes in. This feature lets you manage payment modes directly within the TMS. You can define flexible payment options specific to each route, adjust them in real-time, and share these details seamlessly with contractors and drivers.
Benefits of Using Route Payment Basis
Integrated Tracking of Payment Modes
Flexible Options: Choose between Planned, Actual, or Custom Values to ensure that driver and contractor payments accurately reflect each route.
Real-Time Adjustments: Adjust payment basis preferences during a route, if needed.
ERP Integration: Integrate with your ERP to trigger automated settlements based on selected payment bases, keeping your pricing logic consistent.
Enhanced Transparency
Contractors can see the payment basis chosen for them, with details in the "Organization That Contracted You" section, ensuring clarity on payment terms.
Event-Driven Updates: The TMS automatically notifies all relevant parties when payment terms are updated, keeping everyone informed and aligned.
How to Use Route Payment Basis
Set Up Payment Basis
To set up the payment basis for a route, follow these steps:
Navigate to the Routes page in the TMS.
Select the route for which you want to set the payment basis.
Click on "Set Payment Basis for Current Contractor" in the side panel.
You’ll see two sections here:
Organization That Contracted You: This displays the payment basis set by the organization that assigned the route to you. Contractors with "View" permissions can see this basis here. This section will always be empty for route owners since no organization will assign routes to them.
Organization That You Contracted: Here, you can set the payment basis for any subcontractors or drivers, allowing control over payments to your direct contractors or drivers.
Choosing the Payment Basis
Once you’re in the "Set Payment Basis" menu, you’ll have three options to choose from:
Planned Distance and Duration: For routes with predictable conditions where planned values are sufficient.
Actual Distance and Duration: Ideal for routes with variable conditions, allowing payment based on actual distance and duration recorded during execution.
Custom Distance and Duration: For handling special cases or discrepancies. Enter specific distance and duration values manually, and provide a reason (e.g., "Traffic") for transparency.
If you select Custom Values, enter the relevant distance and duration, and add a note explaining the reason. Save the changes to ensure clarity and transparency across all parties involved.
Save Changes
After setting or updating the payment basis, saving your changes will notify the paying organization. This ensures everyone is aware of the chosen basis and its justification.
Viewing and Managing Payment Basis
Permissions determine who can view or modify the payment basis for a route:
View Access: Contractors or partners with view permissions can see the payment basis under "Organization That Contracted You." This provides transparency on payment terms without granting editing rights.
Edit Access: Users with edit permissions can switch between planned, actual, or custom values as necessary.
Only organization Owners have default edit permissions but can assign specific permissions to other roles.
Example Workflow for Contractor Visibility
Contractors working under your organization can see the payment basis you set for them in the "Organization That Contracted You" section. For instance, if a custom payment basis is set, contractors will find details on the agreed distance, duration, and the reason provided.
This setup allows contractors to set payment terms for their own subcontractors or drivers (in the "Organization That You Contracted" section) independently, ensuring they can manage their downstream payments as necessary.
Hierarchical Payment Structure in Route Payment Basis
The Route Payment Basis feature supports a clear, structured hierarchy across the fulfillment chain. Here’s how it works:
You (Organization 1) assign a route to Logistics Company (Organization 2).
Logistics Company can view but not modify the payment basis set by You.
Logistics Company can assign the route to a Local Delivery Service (Organization 3), setting their payment basis with them.
Local Delivery Service can then set payment terms with their drivers.
This hierarchy ensures that each organization can see relevant payment details without altering upstream agreements, maintaining transparency and control.
Summary
The "Route Payment Basis" feature in Mover's TMS streamlines contractor and driver payments by managing them directly within the system, eliminating the need for external spreadsheets. It offers flexible payment options—planned, actual, or custom values—that can be adjusted in real-time based on route specifics. Contractors can view payment details in their designated sections, ensuring transparency while maintaining control over downstream payments. This hierarchical structure enables efficient, clear payment workflows across all levels of the fulfillment chain.
FAQ
Where can contractors see their payment basis?
Contractors can see their payment basis under the "Organization That Contracted You" section in the TMS, providing clarity on payment terms without editing access.
Can contractors set payment terms for their subcontractors or drivers?
Yes. Contractors can define payment terms with their subcontractors or drivers in the "Organization That You Contracted" section. This setup enables them to manage their own downstream payments while respecting the terms set by their contractor.