Zonal Tariff
Zonal Tariff refers to the ERP-configured rate logic that applies different charges based on the shipment’s origin and destination zones. This pricing method is commonly used in domestic and regional logistics to standardize freight charges across service areas, making cost calculations predictable and scalable. Zonal tariffs simplify rate card management, reduce quoting errors, and enable automated pricing tied directly to delivery distances or complexity levels.
How Zonal Tariff Works in Logistics?
In an ERP system, shipping zones are mapped and paired (e.g., Zone A to Zone D), each combination linked to a predefined charge or pricing rule. When a shipment is created, the ERP identifies the relevant zone pair and retrieves the applicable tariff from the customer or carrier rate card. This rate is applied automatically to the shipment or invoice, factoring in additional surcharges like fuel or handling if configured. Zonal tariffs support faster quoting, consistent billing, and SLA-aligned costing.
Zone-Based Configuration in ERP Systems
Zone Definition & Boundaries
ERP defines zones using geographical clusters, like postal codes or regions, to set pricing boundaries for origin and destination logic.
Operational Application
When shipments are booked, the ERP identifies zone pairs and applies tariffs without manual rate lookup, ensuring speed and consistency.
Pricing & Tax Assignment
Zonal tariffs are linked to base freight charges and may include zone-based taxes or accessorial fees calculated during job creation.
Carrier & Partner Mapping
Different carriers may have unique tariffs for the same zone pair. ERP selects the appropriate rate card based on partner linkage.
Performance Insights by Zone
ERP generates cost-per-zone reports to help logistics managers assess profitability, route performance, and pricing efficiency across regions.
Conclusion
Zonal Tariff logic in ERP logistics automates and standardizes how shipping charges are applied across different service areas. By linking pricing to zone pairs, it reduces manual intervention, accelerates quote generation, and strengthens rate transparency, ensuring accurate and location-aware billing for every shipment.