How can I keep my margins whole when average cost estimates don’t work anymore? A FOB pricing strategy won’t work in times of volatility. Because FOB price is based on annual averages and the volatility of fuel costs from month to month is out of control, this can really hurt manufacturers’ margins. To make up for this, manufacturers sometimes remove FOB and invoice at the price that makes sense at the time. This is only possible with a view to costs in real-time.

For example, manufacturer contract price negotiations with distributors may include removing FOB and looking at month-to-month costs for transportation. In another scenario, the manufacturer may give the distributor the option to pick up the product instead of shipping it. 

Now, when you negotiate a contract, you need a clear view to all cost components to control the dead net.

Trying to wrangle a B2B solution into B2C tech won’t work anymore.