Contract Negotiation Support
Carriers like FedEx, DHL, UPS, and the USPS implement annual General Rate Increases, change service parameters, add additional service fees, and raise accessorial charges throughout the year. Each of these changes increases their revenue and profit and negatively impacts your bottom line. Even with a carrier pricing agreement in place, your shipping charges go up, and you are negatively affected.
Large organizations have a dedicated logistics team that constantly monitors these carrier changes, analyzes their impact on the business, and implements mitigation tactics such as renegotiating the terms of their carrier pricing agreements immediately.
Most small and medium-sized businesses lack the staff or time to address these changes, which negatively impacts them due to the increased costs.
And when you do attempt to address these changes, the carrier sales reps are trained to protect their bottom line. These carrier sales representatives are paid commissions when shippers’ rates increase. Their best interest is for their employer, not your business.
Carrier contracts and pricing agreements are purposely misleading and confusing. We can help you ensure you identify where to look to get the best pricing agreement and carrier contract.
Carrier Pricing Agreement Modeling
Carrier pricing agreements and discounts are complex with hidden triggers like gross revenue ties, minimum charges, dimensional weight factors, and services with less-than-optimal discounts or missing discounts that impact shippers. Allow our analytic tools and expertise to ensure you identify exactly how each carrier agreement impacts your shipping cost and analyze the differences so you can confidently and quickly select the carrier that best meets your cost and value needs.
- Model Current Carrier Existing Pricing Agreement
- Model Current Carrier New Offered Pricing Agreement
- Model Offer of Alternative Carrier: New Offered Pricing Agreement
- Run comparative analytics to identify pricing differences, overall cost savings impact, and recommendations for agreement with the best value
Carrier Cost Analysis & Benchmarking
Compare carrier pricing agreement discounts, minimum charge, dimensional weight, fuel surcharge, address corrections, and other accessorial and fee impacts on your shipping costs.
a. Benchmark your shipping costs against industry average shipping costs for similarly sized businesses and shippers
b. Identify areas of opportunity for pricing improvement
Negotiating Support Process
