SMALL PARCEL NEGOTIATION SERVICES

In the U.S. small parcel industry, a small number of carriers use sophisticated pricing engines to determine your parcel rates. It’s very difficult to get them off their standard rates without an equal level of sophistication on your end. Trans-Solutions Consulting can bring this level of sophistication to your small parcel negotiation process, and reduce your parcel freight costs by 10% to 35%.

Simply comparing rate discounts is inadequate in assessing parcel rates since small parcel charges involve many cost components. A carrier can say “We won’t increase your base rates,” but they may take a bigger increase in an accessorial charge such as hazmat shipping, residential delivery or fuel. These charges must be included to accurately assess the carrier’s proposal. But few shippers have sophisticated tools to capture all relevant charges.

Trans-Solutions tools let you analyze your rates like parcel carriers

Trans-Solutions has built our own proprietary tool, the Xact Negotiator, to determine specifically how a carrier’s proposal affects you financially. The tool functions much like the model used by carriers to determine your rates, making elements of the carrier’s charges visible to the finest detail. By taking these cost elements out of the “black box” and moving them onto the negotiating table, we can negotiate your rates from a position of knowledge and strength.

Other small parcel negotiation features:

• Experience. We have reviewed more than 500 UPS and FedEx contracts. Working and negotiating with these carriers has provided us with insight into what freight they want and how to sell it to them.
• Rate database. Our database on parcel rates is extensive. This allows us to compare your rates with similar freight. In most negotiations, the shipper sees their rates only, giving the carrier, who has visibility to everyone’s rates, a decided advantage.
• Speed. Once we have gathered the baseline data from your freight profile, our Xact Negotiator tool allows us to efficiently analyze the impact of different carrier proposals on your costs. All the components of your ultimate cost have been built into the tool allowing a multi-layered analysis. It would be impractical to build such a sophisticated tool for a one-time analysis. But this tool can be used across multiple customers to allow rapid analysis.

Need to reduce your parcel rates?

Our parcel negotiation services can help reduce your parcel costs by 10% to 35%. Contact us to discuss how we can put our experience to work for you.