manage contracts

Carrier contract negotiations: manage contracts with ease

We are almost reaching the end of the year, but new challenges await us. Parcel and freight shipments are facing disruptions domestically and globally. These disruptions are many such as inflation or unrest among union workers. The Union workers include drivers, temporary workers, and package handlers. Hence, shipping costs are rising for delivering high-quality goods on time.

According to the latest reports, freight prices are increasing in the second half of 2022. So, shippers have to negotiate contracts with shipping carriers to save money. This article will focus on new changes expected in existing carrier contracts and negotiation parameters.

Why are carrier contract negotiations so important now?

For the past two years, there’s been a disruption in the U.S. supply chain. High shipping rates and port congestion are causing disruptions in the U.S. supply chain. In addition, shippers need confirmation that there is no change in their carrier contracts. They have to periodically review the carrier contracts for any changes made concerning rates. Further, shipping volumes affecting the shipping expenses need periodic review. As a result, shippers should have new changes in their carrier contracts and negotiate better.

Carrier contract management

Managing contracts with different shipping carriers are complex. Tracking each carrier’s performance against a company’s goals requires greater clarity. Also, aligning the invoices with the agreed terms of the carrier contract is necessary. It is to ensure that companies are not paying more to shipping carriers. Hence, managing carrier contracts requires integrating technology into shipping operations. It allows shippers to make strategic decisions and detect future problems. Further, handling claims and resolution management give shippers a competitive edge.

Parcel contract negotiations

Small parcel contracts have terms that are difficult to understand for an average person. Experts in this field, like Audintel, can negotiate for businesses and save money. The options that are available for shippers during parcel contract negotiations include

  • Better options from the same carrier

During contract negotiations, shippers can opt for better, alternative services from the same carrier. It allows companies to save money and pay only for the services needed. For instance, FedEx Smart Post is cheaper than FedEx Ground shipping. FedEx Smart Post does not include residential surcharges. So, opting for the FedEx Smart Post service saves money for shippers.

  • New amendments in agreement

Parcel contracts can have amendments based on the weight of packages. In addition, the shipping zones for parcel delivery also make a difference. If companies feel that they deliver lightweight, small parcels to customers, they can make the required changes to their contracts. Alternatively, if most package deliveries do not go to remote locations, necessary amendments in the agreement are possible.

  • Renegotiate with carriers

When contracts expire or need renewal, shippers can renegotiate with carriers on parameters such as

  • Discounts

Shippers can receive discounts from parcel carriers based on different tiers and shipping volumes.

  • Minimum spend

The lowest billed price of a parcel is possible during negotiations with shipping carriers.

  • Surcharges

Parcel carriers can levy surcharges on fuel, address correction, Saturday delivery, and more. By reassessing shipping data, shippers can evade surcharges during renegotiations.

  • Refunds

Parcel carriers offer refunds to companies for late and failed deliveries. In addition, parcel carriers have to refund money if they have overcharged for any service. The refund clause has to be a part of amendments in parcel contracts.

Optimizing your parcel negotiations

Parcel shipping is becoming expensive with the rise in shipping rates. In such a scenario, carrier contract negotiations are necessary. Each carrier contract’s details have to be fine-checked for any drawbacks. While negotiating, companies need to know their data, shipping volumes, and preferred carrier fees. In addition, shippers need to know the services offered by various carriers and their best rates. If these negotiation strategies feel overwhelming, there are audit services like Audintel to assist you. We optimize your parcel negotiations and provide efficient solutions to our customers. Let Audintel help you in negotiating improvements in your contract agreements.

Conclusion

The dynamics in today’s shipping industry are evolving. Shippers face new challenges such as shipping rates, monitoring and tracking packages, and communicating with the customers for any delays. In short, shippers need help getting the best deals from their shipping carriers. With Audintel, shippers can rest easy about their carrier contract negotiations. Our experts are here to help shippers during each step of the negotiations. For further assistance on contract negotiations and more, contact us on +1 (619) 354 8539 or visit our Audintel website.

Shipping analytics

Shipping analytics provide valuable insights into your business

Seamless, contactless, anytime-anywhere commerce is on the rise. Businesses want to compete with the best in this post-pandemic era. Consumers are loyal to brands with frictionless checkouts. So, shippers need to have faster delivery systems, thus giving excellent customer satisfaction.

With this in mind, analysis of shipping data is necessary for businesses. The assessment of shipping costs with shipping reports was a part of our earlier blogs. However, this blog will cover the importance of shipping analytics and reporting.

Shipping analytics and reporting-why is it essential?

Shipping data is analysed based on the demand for shipping products, shipping costs, unshipped orders, and on-time performance by carriers, fulfillment centres, etc. Hence, understanding a company’s Key Performance Indicators (KPIs) is critical in controlling costs. Shipping analysis of information increases savings with intelligent reporting across all regions. It helps in improving shipping performance and service.

Shipping analysis augmented by shipping reports

Analysis of shipping data gives companies a 360- degree view of their shipping profiles. Shippers stay updated on any shipping errors that occur during shipments. They get instant information about the on-time delivery of goods and any last-mile shipping costs. Shipping analysis involves a review of past shipping history data and its evaluation. Further, shippers can look for financial opportunities with the shipping analysis. So, companies receive all the above information through shipping reports.

What is a shipping report?

A shipping report gives an overview of a business’ shipping profile. It includes parameters such as the order number, order date, customer name and address, shipping items, quantity, etc. Shippers get regular updates about service changes made by shipping carriers like changes in tariff rates, discounts, and levy of surcharges. Analysts prepare various shipping reports that are simple to understand for businesses.

Kinds of shipping reports

There are various types of shipping reports that improve customer satisfaction. These reports are customized to make it easy for shippers to understand their shipping expenditures. Some of these shipping reports are

Shipping services report

This report provides shipping details about the shipping carriers and their services. Shipping services such as 1-day, 2-day, and overnight delivery by different carriers are evaluated and shared with the customer.

Shipping information report

Shipping information of parcel and freight shipping of each company is analysed based on the recent shipping activity. This report consists of the order number, order date, customer’s name and address, quantity shipped, weight description, delivery date, etc.

Freight shipment report

This report monitors and tracks freight shipment globally in real-time. It allows experts to analyse the shipping routes, locations, volumes, network of freight carriers, and more. In addition, shippers can make data-based, vital decisions on their freight shipments.

Logistics and supply chain reporting

Shipping analysis also includes logistics and supply chain reporting. The report monitors and optimizes KPIs and supply chain metrics. Further, supply chain metrics define and quantify supply chain performance. Examples of supply chain metrics include:

  • Freight invoice accuracy

Freight invoices issued by the shipping carriers contain a description of the freight, port origin, shipper’s name, shipment weight, etc.  However, most freight invoices do not match the final, original quotation. It leads to duplicate payments, errors in discounts, incorrect delivery addresses, and overpayments. Thus, checking the accuracy of freight invoices is vital for businesses to save money.

  • Delivery time

Mentioning the precise delivery time improves the supply chain performance of goods. In addition, companies offer special delivery services to decrease delivery time. It improves customer satisfaction and attracts more orders from such companies.

  • Pick and Pack Cycle time

The time to pick an item from the shelf and pack it helps in learning the efficiency of the supply chain. Hence, tracking any delays and rectifying them will help bring down any inefficiencies in the system.

Container shipping analysis

According to some reports, the global shipping container market will grow by 12% from 2020 to 2028. Hence, analysis of shipping containers on intuitive shipping software platforms benefits companies. The analysis reports provide a comprehensive overview of revenue forecast, company ranking, volumes shipped, growth opportunities, and more. In addition, the analysis offers companies competitive strategies to stay ahead. Further, it provides the means to sustain in fast-evolving markets.

Advantages of using shipping analytics and reporting

Audintel is your audit partner in the shipping industry. We analyse shipping billing errors and instantly notify our clients. It allows our clients to take the appropriate action where possible. We assess the delivery performance of the various shipping carriers daily. Audintel has customised many shipping reports that provide our clients with information at their fingertips. Our intuitive dashboards help our clients have visibility to their shipments. In addition, we customise our shipping reports according to our client’s preferences.

Final thoughts

Shippers require transparency about their shipping profile to save money and reduce costs. For this reason, shipping analysis is essential for uncovering shipping errors. Further, the analysed data is represented in shipping reports so shippers can make informed decisions. Audintel is the best auditing partner for your shipping needs. Our intuitive dashboards and easy-to-use shipping reports help shippers make profits in their businesses. We are there for you. Contact us for further information on +1 (619) 354 8539 or visit our Audintel website.