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 parcel rate negotiation process, and reduce your parcel shipping costs by 10% to 35%.
Simply comparing rate discounts is inadequate in assessing parcel rates since the rates involve many cost components. A carrier can say “We won’t increase your parcel shipping base rates,” but they may take a bigger increase in an accessorial charge such as hazmat shipping, residential delivery or fuel, or they may increase rates on a shipper number. These parcel rate charges must be included, along with any rate discount, 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 your carrier uses to determine your parcel shipping rates. We make 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 parcel rates from a position of knowledge and strength.
Other small parcel negotiation strengths
- Experience. We have reviewed more than 500 parcel 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 comparison. Our knowledge of other shippers’ 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 parcel shipping costs. It would be impractical to build such a sophisticated tool for a one-time analysis. But this tool can be used across multiple customers and locations to allow rapid analysis.
The chart below indicates real savings attained in small parcel for a variety of Trans-solutions clients.
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