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Order price split

Describes how order price is split for financial insights

Note! Better Truckin' order price split model does NOT impact order invoice values. The model is only used for financial insights.

Background

To analyse mission or trade order profitability it can be useful to look at how much profit the orders in the mission or trade order have versus the mission or trade order cost. The example below show how order profit is split for missions, but same logic is also valid for trade orders.

Because orders can be planned into several missions, it is necessary to first estimate how much of the orders profit can be attributed to each mission.

Consider the following scenario where an order is carried out in two missions:

To see if Mission 1 and 2 are profitable, we need to split up the order profit between the two missions so we can compare it with their costs. Better Truckin' does this automatically and this article describes the methods used for different order types and scenarios.

Transport Orders

Better Truckin' order types:

  • Package

  • Bulk

  • Container

Price data for transport orders are split up using distance for each transport leg. In our earlier example, the first transport leg covers twice the distance of the second one. Due to this, the system will attribute more of the orders profit to the first leg (and by extension mission).

Work Orders

Price data for work orders are split up using the number of stops instead of distance. See the example below.

Mixed Order Types (Transport & Work)

When orders are grouped together and given a single price, the group price is split up using the same logic as previously explained.

However, there is a special case when both transport- and work orders are grouped together that needs to be considered. See example below.

Here you can see that the group price is first split using the number of transport legs. Then, each order is split up using the logic from earlier.

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