Establishing a Buyer Allowance

Vendors can establish a buyer allowance, which acts as a maximum price limit for collect shipments. The buyer allowance provides logistics teams at the receiving location with a maximum price limit for selecting carriers. The logistics team selects a carrier, shipping mode, or both a carrier and shipping mode where the cost is less than the established Buyer Allowance. Picking based on the lowest cost usually results in the selection of a carrier or mode that may not be the fastest option. If the buyer at the receiving organization wants the shipment to arrive sooner, additional allowance can be provided to the logistics team on top of the existing vendor allowance. The additional allowance allows logistics teams to choose a faster, yet more expensive, option.