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Contract optimization and the status quo.

We speak often of our contract optimization services, but we stop short of providing details on the mechanics thereof. It’s both a trade secret and a “who you know” strategy that enables us to generate very substantial savings from our rate analysis and negotiation services, otherwise known as contract optimization.

We’ll have to speak generally in public, saving the intricacies of the process for a more private setting. We have developed cost modeling technologies to identify targeted and highly relevant savings opportunities. Our team includes retired high level carrier professionals who know what UPS, FedEx, and DHL can and cannot do, and we structure our negotiation tactics around that intelligence. As a result, clients see an average savings of 20%. Hard to believe, but very real.

Contract optimization is neither quick nor simple and is as much art as science. It behooves the carrier to keep the status quo, assuming they can keep the customer coming back for more. So carriers drag their feet to maximize their short-term gains while shuffling busily as if they’re bending over backwards for the shipper.

There’s certainly an element of posturing that encourages carriers to dig deeper as they negotiate with their (and our) customers. If you’re one who would prefer not to rock the boat, be assured that in the end, about 80% of FedEx and UPS customers remain with their incumbent provider. We have no interest in disrupting a system that works for you, but we do want to extract every reasonable concession to help your business grow. It takes months, but contract optimization, like good wine, takes time (Did I really just say that?)

If you ship over $1M/year with your primary carrier, or with a mix of carriers, please call us for a confidential, no-risk consult to evaluate what our contract optimization services might contribute to your bottom line. Worst case is we validate your current contract. Best case is we establish a new baseline for your carrier contract that reaps rewards for many years to come. Either way, it’s a no risk conversation, and any compensation to us is, as always, just a fraction of the money that we save you.

Once the new contract is in place, the rate compliance element of our parcel audit assures that the contract remains in place and the hard-won concessions are honored. Give us a call.

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