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upcharge

Definition

upcharge

An upcharge is an additional fee that is added to a bill after a contract has already been negotiated.

Upcharges, which are also known as accessorial charges, are levied to cover the cost of unforeseen circumstances. On a freight bill, for example, the recipient may be upcharged for rising fuel costs, truck driver wait times or additional labor requests, such as asking the driver to move pallets into a warehouse.

Upcharges may also be levied for failing to meet a contract's requirements. For example, a retailer may upcharge a manufacturer for failing to use the correct type of pallet or for delivering a short order.

Upcharges are also known as accessorial charges.

Related glossary terms: Demand signal repository (DSR) , SCEM (supply chain event management), process manufacturing, work in progress (WIP), advanced shipping notice (ASN), demand-driven manufacturing (DDM), demand flow scheduling system, supply chain planning (SCP), smart label, bar code (or barcode)

Contributor(s): Brenda Cole

This was last updated in August 2012

Posted by: Margaret Rouse

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