Freight and Small Parcel Shipping Contract Negotiation & Analysis
The most effective way to reduce freight shipping costs is to negotiate your current small parcel and freight contracts in an effort to achieve lower rates from FedEx, UPS, and other carriers. It is common knowledge that the carriers sell freight shipping contracts that maximize carrier profit. UPS contracts and FedEx contracts include numerous variables that determine the final small parcel freight shipping costs of a package. A small change in an accessorial charge, carrier tariff schedule, service incentive, deferred incentive, minimum net charge, or carrier surcharge can substantially reduce shipping costs associated with freight contracts. The carrier and shipment contract pricing experts at Lojistic use highly developed analytic software and industry knowledge to analyze current FedEx contracts and UPS contracts in order to identify opportunities to lower shipping costs for you. Lojistic's freight contract negotiation team will help your company modify current freight contracts, resulting in reduced freight costs.
Lojistic employs the carrier pricing expertise of former UPS, FedEx, and freight carrier employees with innovative small parcel and freight shipping rate analytic technology to maximize freight cost savings. Due to our extensive knowledge and understanding of the industry's complex pricing environment (both domestic shipping rates and international shipping rates), we are able to effectively analyze carrier proposals, which helps result in reduced shipping costs for our clients. Simply put, we know how to reduce shipping costs.
What Lojistic Will Do To Reduce Shipping Costs:
Our carrier pricing experts will perform an analysis of current shipping contracts to determine small parcel and freight cost reduction opportunities. Lojistic's carrier pricing analytics, freight pricing knowledge, carrier negotiation expertise, and shipping industry experience enable our team to precisely identify areas of opportunity to improve your existing freight and small parcel contracts for the lowest FedEx and UPS negotiated rates. We will develop a customized strategy to optimize your shipment contract incentives and structure. Lojistic will manage the UPS contract and FedEx contract negotiation process on your company's behalf. On average, our customers experience a 12% small parcel freight cost reduction after our carrier pricing and negotiation team executes the following steps to lower shipping costs:
- Gather customer shipping data and develop a shipping profile
- Expert analysis of current freight and small parcel shipping contracts to find opportunities for lower shipping costs
- Develop a carrier negotiation strategy for freight contracts and set freight contract goals
- Submit a customized formal Request for Quotation (RFQ) to the shipping carriers
- Freight rate negotiation with freight and small parcel carriers for better freight rates
- Analyze and compare proposals from UPS, FedEx, and other shipping carriers
- Continued freight contract negotiation with carriers
- Implementation of new freight and/or small parcel shipping contracts at lower shipping rates
- Monitor carrier performance and freight contract compliance with new shipment contracts