About Buy / Cost Contracts

Overview

A Buy Contract (or Cost Contract) represents an agreement between ProTrans and a customer regarding the amount of money charged for a given service. ProTrans secures Buy Contracts (or Cost Contracts) with suppliers such as carriers, document processing groups, etc. to perform services on a customer's behalf. The difference between a Sell Contract (or Charge Contract) and a Buy Contract (or Cost Contract) represents income for ProTrans.

The Jaguar Contract Management System acts as an electronic repository for all of these agreements. Jaguar and Optimiz work together to automate the process of looking up, copying, calculating, and verifying cost / buy rate data.

How Jaguar and Optimiz Integrate

When a load is created either by a user or automated process, Optimiz passes certain data to the Jaguar Contract Management system to determine if there is a matching contract. If there is a matching contract, the rate data is passed back to Optimiz. These data are then applied to the load.

Who is Responsible for Entering in Buy / Cost Contracts?

There are two groups responsible for entering and maintaining Buy / Cost Contracts in the Jaguar Contract Management System:

• Procurement group - Enters in Buy / Cost Contracts when new carriers are acquired.
• Accounts Payable group - Notifies procurement if a statement reflects a different rate than what is stored in the Contract Management System.

What Happens if there are No Buy / Cost Contracts?

If there are no matching Buy / Cost Contracts when Optimiz finishes searching, the user adding the load will be required to obtain the data from another source and manually provide the data.