Parcel Negotiation: Saving Money and Smart Results Author: Jordan Zapotechne
May 09, 2019

Parcel Negotiation: Saving Money is Smart

So, today, I'm talking about parcel contract negotiation. More specific is the role that analytics play in that process. And of how it can be helpful to help you get the best possible contract with UPS and FedEx and other carriers.

There's an importance of analytics. The process of negotiating your contract is understanding where you are now. You must understand where you can be, and where you should be. With the process of negotiating a contract, you can make very specific requests. And there are certain things and areas of your contract that are going to impact your spending. This will pretty much reduce your cost more so with parcel negotiation than other areas of your contract.

The Advantages of Analytics

Analytics are important because there are a lot of advantages. Very fast, you can understand the discounts for the different service levels. And weight breaks within those service levels. This is as well as the net incentive you have off of your total transportation spending.

This includes the discounts you might have on a transportation service. This includes the incentives that you have off of the surcharges applied. We want to get you the lowest cost on residential surcharges or DAS fees. We also want to help you understand what kind of parcel negotiation impacts those discounts. It's things like your least absolute cost for a shipment.

Analytics dives into that, and it gives you a lot of insight into knowing where you are now. It also helps you understand some basic benchmarking of where you can be. It also helps you figure where you should aim your efforts with the carrier.

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