A requirements specification (Lastenheft) for freight Terms management software defines all functional and technical requirements for the central management of freight rates, surcharges and tariff agreements. In contrast to error-prone Excel administration, a professional solution provides version security, audit capability and automated freight cost calculation. The core requirements include automated rate table import, end-to-end validity checking with versioning, multi-currency support with defined exchange rate sources, and rule-based mapping of complex surcharge logic.
Why Excel reaches its limits
Mid-sized logistics organizations often maintain freight rates in Excel files. As the carrier portfolio grows, typical problems arise: version conflicts between editors, missing audit trails, manual entry errors, and no automated freight cost calculation. A dedicated Terms management software – usually part of a Transport Management System (TMS) – solves these issues through a central data foundation, rule-based logic, and API integration into ERP and WMS systems.
Functional scope of the requirements specification
A complete requirements document should cover at least the following functional blocks:
- Master data management: Carriers, forwarders, transport modes (truck, air, sea, parcel), contractual partners and locations
- Tariff management: Weight, volume and zone tariffs, scaled prices, minimum-weight surcharges
- Surcharge logic: Dynamic and static surcharges with formulas and indices
- Validity control: Time-based versioning with predecessor and successor contracts
- Freight cost calculation: Pre-calculation and freight audit of carrier invoices
- Reporting: Lane analyses, carrier comparisons, cost-center evaluations
- Interfaces: ERP (SAP, Microsoft Dynamics), WMS, TMS, carrier portals
Requirement 1: Automated Terms table import
Carriers deliver tariffs in heterogeneous formats – Excel, CSV, PDF or EDI messages (e.g. EDIFACT IFTSTA, IFCSUM). The system must meet the following requirements:
- Mapping templates: Reusable templates per carrier to assign columns to internal data fields
- Import validation: Plausibility checks for completeness, value ranges and duplicate maintenance
- Error logging: Protocol of rejected records including reason
- Delta detection: Automatic comparison against the previous version with change marking
- API integration: Direct access to carrier portals via REST or SFTP
Requirement 2: Validity checking and versioning
Freight rates have defined terms and frequently overlap. The system must unambiguously determine the valid rate at any point in time. Mandatory requirements:
- Timestamp-based validity (valid from / valid to) at tariff and surcharge level
- Complete historization for audit and tax inspections
- Warning for gaps or overlaps between contract versions
- Approval workflow before activating new rates
- Retroactive recalculation of historical shipments using the rate valid on shipping date
Requirement 3: Multi-currency support
International logistics requires consistent currency logic. The specification must define:
- Storage of rates in any ISO-4217 currency (EUR, USD, CHF, GBP, etc.)
- Daily exchange rates from a defined source (e.g. ECB reference rate, in-house corporate rate)
- Reference-date conversion – based on shipping, booking or invoice date
- Separation between local currency and invoicing currency per legal entity
- Rounding rules according to local tax legislation
Requirement 4: Complex surcharge logic
Surcharges are the most common cause of deviations between calculated and actual freight costs. A professional software must map all common surcharge types using rules:
- Fuel surcharge (BAF / floater): Index-based, updated monthly or weekly
- Toll surcharge: Country- and weight-dependent
- Security surcharge: ISPS / SCS-compliant for air freight
- Seasonal surcharges: Peak Season Surcharge in Q4
- Accessorial charges: Waiting time, lift-gate delivery, notification, evening delivery
- Combined surcharges: Multi-stage calculation (percentage on base plus fixed amount)
Excel vs. Terms management software comparison
| Criterion | Excel-based management | term management software |
|---|---|---|
| Version security | Manual, error-prone | Automated versioning with audit trail |
| Multi-user operation | Limited, locking conflicts | Role-based access, parallel editing |
| Freight cost calculation | Manual or via macro | Rule-based in real time |
| Interfaces to ERP/WMS | Not available | API, IDoc, OData, CSV export |
| Audit capability | Not audit-proof | Complete history, GoBD-compliant |
| Scalability | Breaks at ~50 carriers | Thousands of tariffs handled performantly |
Three steps to a successful implementation
- Conduct an as-is analysis: Capture all current Excel files, carrier contracts and calculation logic. Define data owners per carrier and lane.
- Structure the requirements document: Separate mandatory requirements (must-have) from optional functions (nice-to-have). Prioritize by business risk and frequency of change.
- Evaluate vendors: Compare specialized TMS modules (e.g. Transporeon, Alpega, Shipsta) with ERP-integrated solutions (SAP TM) and verify integration with your existing WMS.
FAQ — Frequently Asked Questions on Terms Management
What is the difference between Terms management software and a TMS?
Terms management is a sub-area of a Transport Management System (TMS). While a TMS also covers route planning, tracking and order processing, pure terms management focuses on the administration of tariffs, surcharges and freight audits.
Which interfaces are mandatory for ERP integration?
For SAP S/4HANA, OData services and IDocs (DELVRY, INVOIC) are standard. For Microsoft Dynamics 365, REST APIs are established. A bidirectional connection to the WMS ensures the real-time transfer of shipment data and actual weights.
When does it pay to switch from Excel to dedicated software?
Experience from logistics projects shows that the switch is worthwhile from approximately 20–30 active carriers or an annual freight volume of around EUR 1 million. The decisive factor is less absolute size than the frequency of tariff changes and the number of editors involved.
How is GoBD compliance ensured?
The software must offer immutable storage of all term versions, timestamp logging and a complete audit trail. Rate changes must only be possible via an approval workflow with traceable user attribution.
How are complex surcharges such as fuel or toll surcharges modeled?
Through rule-based formulas with stored indices. The BAF, for example, is linked to a monthly diesel price index, the toll surcharge to country, axle count and weight. The software must automatically pick up these indices and apply them to all affected shipments.
A professional terms management software is the foundation for transparent and audit-proof freight cost processes. With a structured requirements specification that precisely describes import automation, validity checking, multi-currency logic and differentiated surcharge calculation, you create the basis for a successful selection and implementation process.