Questions and Answers

Equipment Hire Days

Why is the equipment hire days for my invoice closing balance not the same for the opening equipment hire days for the next invoice?

Answer:

The equipment hire days closing balance is the sum of the equipment hire days balance brought forward plus or minus movements during the month.

The equipment hire days opening balance is a calculation of the opening balance number of pallets times the number of days for the month or week.

If you find this confusing, don’t worry, it is.

 

 

 

 

 

Flow Through Ratio (FTR)

What is FTR?

Answer:

The Flow Through Ratio (FTR)  is simply the ratio between equipment on and off.  If you look at your CHEP or Loscam account over a period of time then you can look at the difference between what has come on to your account and off it.  As an example if you have 1,000 pallets on to your account and 500 pallets off then the FTR is 0.5.  If you had 1,00 on and 1,000 off then the FTR would be 1.0.

The ratio might not be that enlightening if you are building stock as a 3PL warehouse might do leading up to Christmas.  The ratio would be less than 1.0 and doesn’t really tell you much.

If you are a carrier who only picks up and delivers then the ratio can be a good measure.  If the carrier’s ratio is consistently less than 1.0 then it would indicate that there are not enough pallets coming off the account.

The following is an example of a FTR report from the PalletWatch system.