1. The document discusses dimensional weight pricing, a strategy where shipping companies charge customers based on the volume of packages rather than just weight alone. 2. It argues that dimensional weight pricing ensures companies are properly compensated for space taken up in vehicles and that customers receive fair invoices. 3. Automatic measuring equipment is recommended to provide accurate dimensional data, maximize revenue potential, and build customer trust through transparency.

1. Dimensional Weight Pricing Building Profitability in Courier Logistics Operations New Delhi, 07/04/2010

2. A Brief Introduction Managing Director of Mettler-Toledo Cargoscan AS Global responsibility of Transport and Logistics solutions for Mettler-Toledo Based in Oslo, Norway

3. Agenda Increase Revenue with Dimensional Weight Pricing Transparency with Automatic Measuring Building Customer Trust About Cargoscan™ from METTLER TOLEDO

4. Dim Weight Pricing Concept Volume based pricing strategy Ensures large, bulky items are invoiced according to the space they occupy Transport companies get paid properly for the service they provide Customers receive a fair invoice Should these parcels cost the same to ship?

5. Background of Dim Weight Pricing Dimensional Weight Rates introduced by European express companies in 1988 Based on the International Air Transport Association (IATA) standards Many smaller companies still don’t use dimensional weight pricing Various European Parcel Carriers / Postal Organisations FedEx 1990 1995 2000 2005 DHL TNT UPS DPWN Various European Parcel Carriers / Postal Organisations FedEx 1990 1995 2000 2005 DHL TNT UPS DPWN

6. Why Charge by Volume? Although the un-popped kernels weigh more, the popped popcorn takes up more space in a vehicle By charging for the dimensional weight of the popped popcorn, you get paid for the space it takes up in your truck Space is a Scarce Asset – Charge for it! POPPED POPCORN 5 KG 60 x 60 x 60 cm Dimensional Weight = 36 KG 30 x 30 x 30 cm Dimensional weight = 4.5 KG POPCORN KERNELS 5 KG

7. Why Charge by Volume? Vehicles often fill up before they reach their weight limitation Include the Actual Size in the Price

8. How to Calculate Dim Weight Determine an object’s cubic size (L x W x H) Divide by a dimensional factor Compare actual weight with dimensional weight Use the greater of the two as billable weight L x W x H ÷dim factor = dim weight Invoicing Should Reflect Actual Transport Costs

9. Dim Weight vs. Actual Weight The low density of this package means the carrier will earn 40% more if they charge based on dim weight H = 8cm W = 60 cm L= 90cm 5 Kg Dimensions 90 x 60 x 8 cm = 43 200cm³ Dimensional factor 6000 cm³/ kg Dim Weight 7.2 Kg Actual Weight 5 Kg Billable Weight 7.2 Kg

10. Maximize Revenue Potential If you ship a lot of low density objects and charge solely by actual weight there is huge potential to… Increase your Revenue

11. Agenda Increase Revenue with Dimensional Weight Pricing Transparency with Automatic Measuring Building Customer Trust About Cargoscan™ from METTLER TOLEDO

12. Automatic Measuring Some carriers invoice according to dimensions but only measure goods manually Automatic Measuring is needed to ensure Accurate Data for Correct Invoicing Dimensional Weight Pricing Automatic Measuring Maximized Revenue Potential A Two Pronged Approach

13. Transparency with Automatic Measuring Measuring parcels and pallets automatically gives you full control over your operation All data is stored and easily retrieved Statistics are easily generated Paperwork is reduced

14. Transparency with Automatic Measuring Verified Measurements Correct, Explainable Invoices Repeatable Results Sorting & Tracking Optimal Use of Resources Ensure Customer Trust

15. Weights & Measures Approvals Ensures the Reliability of your Systems Gives Customer Peace of Mind Mandatory in Many Countries Becoming More and More Important MID Meet Regulatory Compliance

16. Image Capture Cameras can be interfaced with your dimensioner to take a picture of each parcel or pallet Protects you against damage claims and during Audits Can act as proof that each package has been measured automatically with a W&M Approved System Avoid Customer Disputes

17. The Problem with Manual Measuring Risk of recording inaccurate data and generating wrong invoices Customer Insecurity Can’t ensure repeatable results Time consuming Human error Money is lost through unnecessary labour, human error and damage to customer trust Manual Measuring is NOT Cost Efficient

18. Dimensional Weight Pricing Increase Revenue with Dimensional Weight Pricing Transparency through Automatic Measuring Building Customer Trust About Cargoscan™ from METTLER TOLEDO

19. Customer Confidence Dimensional Weight Pricing is about Fair Invoicing Not just for You but for Your Customer

20. Customer Confidence Your Customers Can be Sure… Your Measurements are Accurate Invoices Based on These are Correct They are being Treated Fairly They can Trust your Brand

21. Reassuring Your Customers Communicate your plans clearly Explain the benefits of Dimensional Weight Pricing Some customers will receive invoices that are lower than expected Dimensional Weight Pricing is fair for everyone Nobody can argue against fair pricing

22. Encourage Denser Packing Dimensional Weight Pricing encourages your customers to use less packing materials and to pack more densely Your customers will save money on extra shipments and packaging You will have more room in your trucks and make better use of space You will both help to reduce emissions and excess waste Dense Packing is Environmentally Economic

23. Dimensional Weight Pricing Increase Revenue with Dimensional Weight Pricing Transparency through Automatic Measuring Building Customer Trust About Cargoscan™ from METTLER TOLEDO

24. Cargoscan™ Dimensioning Solutions Dimensions, Weight and Identification Cutting-edge Laser Range Finder Technology Weights and Measures Approved Solutions Configurable Application Software Easy integration with Existing Conveyors & Software ” A modern cargo terminal has become a complex machine, fast and efficient. We rely on Cargoscan™ technology to make the perfect terminal.” Johan Lindberg, Schenker

25. Different Solutions for Different Operations Letters Small Packages Packages Packages CSN810 TableTop™ CSN840 Pallet™ TLX MultiCapture™ CSN210 MassFlow™ CSN910 FlexFlow™ CS5400 BarCoded YardStick™ Static In-motion Pallets Pallets(Under development)

26. METTLER TOLEDO Experts in the Transport and Logistics Industry. Leading supplier of dimensioning, weighing and identification equipment. Worldwide presence 25 years of expertise Broad customer base Full understanding of industry needs

27. Global Service We are where you are! “ It’s when you need help fast that you know what kind of company you are dealing with.” Thomas, S ö dermann, Schenker, Sweden

28. Leading Supplier Preferred Supplied of Deutsche Post DHL ” Mettler-Toledo is one of the most reliable suppliers, in which you can trust. Working with them guarantees quality for the final customer.” VanDerLande (System Integrator) Some of Many…

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