Surcharges in Contract negotiations

Surcharges: an integral part of carrier contract negotiations

Are surcharges having a direct impact on your shipping costs? Is your company’s bottom line affected by additional fees? Then, it’s time to negotiate shipping surcharges as a part of the carrier contract negotiations. This blog will focus on the different kinds of shipping surcharges and their need to be a part of the carrier contract negotiations. Further, we will discuss the importance of third-party auditors in understanding shipping characteristics.

Surcharges

Surcharges are the additional fees applied by shipping carriers to each package. They appear on the shipping invoices along with the base shipping fee. Parcel carriers announce shipping rates and surcharges increase annually. If a business ships several packages, these surcharges will affect its profits. Moreover, as e-commerce is booming, businesses need to understand the surcharges in detail.

Surcharges are of different categories and depend on a company’s shipping characteristics. For example, a Ground package may cost 10 dollars, but an additional handling charge will cost 80 dollars extra. Shippers can opt for some services as extra charges. But, some surcharges are imposed by the shipping carriers, like fuel surcharges, due to volatile market fluctuations.

Shipping surcharges are many and may confuse many shippers. However, with the help of shipping analytics, common shipping surcharges can be predicted accurately. Shippers can use the predicting tools to manage shipments and reduce costs.

Here are some common surcharges imposed by parcel carriers

  • Demand surcharges

Demand or Peak surcharges will apply to packages shipped during the peak season. In addition, the service levels, shipping zones, and package weights are a part of the shipping invoice. Shippers can negotiate for these surcharges so they do not pay extra during the peak holiday season.

  • Additional handling surcharge

Shipping carriers such as UPS, FedEx, and USPS have additional handling charges as a part of the surcharges. They force the shipping surcharge on shippers depending on the parcel weight, dimensions, and packaging. While FedEx imposes shipping rates based on shipping zones, UPS does it based on the parcel weights. High-volume shippers can avoid this surcharge by negotiating in advance with fee reductions.

  • Address correction surcharge

This fee is applied when parcel carriers have to update the customer address for package delivery. Further, extra efforts and resources are required to amend the address and re-route the package. Shippers can avoid this surcharge by using different parcel carriers like USPS. Or, they can bargain for a surcharge discount during carrier contract negotiations.

  • Fuel surcharges

This surcharge is a variable fee that changes weekly depending on the market fuel prices. Fuel surcharges vary from carrier to carrier. Companies can negotiate for a fixed or variable fuel surcharge. In addition, shippers can choose the shipping carriers that offer discounts on fuel surcharges.

  • Residential surcharges

This fee is for Package delivery to a home or private residence. Shipping carriers charge additional fees as there are few package deliveries to residential areas. If there are several residential deliveries for some businesses, they can negotiate for a surcharge discount.

  • Delivery Area Surcharge

This surcharge is applied to packages when the package delivery is for remote locations or distant ZIP codes. Shippers have to evaluate their strategies for the delivery of packages. Negotiating with parcel carriers on discounts for this surcharge is possible with the relevant shipping data in real time.

  • Saturday or Sunday Delivery surcharge

Weekend deliveries are costly for shippers and are passed onto the customer frequently as part of the shipping costs. It may lead to customer dissatisfaction and loss of business. Shippers can opt for USPS, which does not charge for weekend shipments, and gain benefits.

The above are a few of the common surcharges. Different shipping carriers have several names for shipping surcharges. So, to understand the shipping surcharges, businesses have to ask for discounts at the negotiating table. Shippers keep their shipping data handy when asking for a surcharge discount from the parcel carriers. For reliable assistance in negotiating shipping surcharges, opt for services from Audintel.

Carrier contract negotiations made easy with Audintel.

It’s common knowledge that surcharges increase annually for all parcel carriers like FedEx and UPS. Some parcel carriers allow discounts for some shipping zones and services. But do businesses know which parcel carriers provide the best surcharge discount for their shipping characteristics? Experts like Audintel guide shippers to negotiate for the best surcharge discounts with shipping carriers. We get statistics for clients like shipping zones, Dimensional weights, and more to help them in carrier contract negotiations. Audintel keeps track of the surcharges of the parcel carriers and aids shippers in negotiating for a lower rate.

To sum it up

Shipping surcharges are part of additional fees imposed on some shipments by parcel carriers. Businesses shipping packages require to pay additional fees to shipping carriers. However, with data-driven information, shippers can negotiate surcharge discounts at the negotiating table. Audintel empowers its clients with innovative solutions to reduce shipping surcharges and boost profits. To know more about shipping surcharges and ways to minimize shipping costs, contact us at +1 (619) 354 8539 or visit our Audintel website.

Carrier contract negotiation

Do you know everything about carrier contract negotiations?

It’s that time of the year again for evaluating your expenses, especially for parcel and freight shipments. As a sign of good practice, companies should review their contracts with shipping carriers annually. It not only helps in understanding the shipping costs but also in saving money efficiently.

We have discussed carrier contract negotiations in our earlier blogs. Here, we will share experts’ advice on the prudent way to negotiate carrier contracts.

Companies with high shipping volumes can reduce costs with an efficient carrier contract management system. Experienced professionals believe that a well-informed shipper can diligently negotiate on the negotiation table and reduce shipping costs. So, let’s understand the importance of carrier contract negotiations. In addition, gain the know-how to prepare for the negotiation process from experts.

Importance of carrier contract negotiations

Businesses face rising shipping prices and increase their profits while fulfilling customer expectations. So, it becomes essential for shippers to negotiate better carrier contracts and save money. Due to labor shortages, shipping carriers such as UPS and FedEx are increasing their shipping rates. Companies end up paying more to these shipping carriers if their carrier contract negotiations do not cover some services. With an optimized carrier contract, companies can drastically reduce their shipping costs.

Contract negotiation process

It is necessary to understand the complexities of the contract negotiation process for the best deals. Ideally, the contract negotiation process involves understanding the shipper’s shipping volume in different categories. Businesses need to identify their shipping volumes in terms of service with zones keeping their historical data in mind. It helps to identify the service that can fetch more discounts from the shipping carrier. Moreover, additional evaluation of weight slabs helps shippers receive discounts, particularly in specific slabs having high shipping volumes. Further, a proper Dim Weight shipping volume assessment helps reduce the Dim Weight.

Negotiating Parcel Contracts

Negotiating carrier contracts can also involve identifying shipments to specific destinations. For instance, shippers can get discounts, particularly for Western States or Eastern States in the contiguous states within the country, or Import/Export to specific countries. In addition, negotiating parcel contracts brings discounts on fees. The parcel carriers offer discounts on high-volume surcharges can significantly reduce shipping rates.

Experts having vast experience in carrier contract negotiations believe that shippers should know which services attract the maximum discount. During carrier contract negotiations, shippers can target the services that will give them the most rebate. In addition, shippers should clarify the minimums applied to each service. For instance, if the shipper has a high possibility of shipping rates at the minimum, then negotiations should be on the minimum reduction amount on the minimums. Further, shippers should negotiate for a higher dim factor for specific services.

Use of Multiple Carriers

According to experienced carrier contract negotiators, shippers should consider alternative parcel carriers. A shipper using a shipping carrier for a prolonged period may miss out on crucial shipping discounts on specific services. A multi-carrier strategy identifies the current carrier costs for alternative carriers. Companies can compare the current shipping costs of the old parcel carrier with that of the new shipping carriers to help them decide the best shipping carrier for their business.

A better understanding of surcharges

Value-added charges or surcharges may not appear in the initial contract with shipping carriers. But, an accurate assessment of the value-added fees at regular intervals helps companies save money. Shipping surcharges and charges of the parcel carriers change frequently. Some of the fees that see frequent changes are

  • General Rate Increase (GRI)
  • Courier and documentation fees
  • Pallet fees

Carrier contract management can keep track of the surcharges so that shippers don’t pay extra. In addition, carrier contract management supports negotiation strategies with parcel carriers. Parcel contract negotiations require expert management to get a complete understanding of different nuances during the contract negotiation. Companies that do not have an in-house contract negotiation team can always partner with third-party experts.

Get expert opinion from Audintel on carrier contract negotiations

Shipping companies have to understand their shipping profile before entering into contract negotiations. Audintel helps shippers evaluate their historical data to know the areas that can reduce shipping costs. Shippers should pay attention to any changes in the shipping carriers’ fees. Our team provides updates about any changes in the shipping carriers’ fees and surcharges so that the shippers don’t pay more. In addition, Audintel also supports its clients in renegotiating contracts as and when needed. We help shippers to review their carrier contracts periodically to avoid payment of unseen charges in the future.

To sum it up

Parcel shipping is becoming expensive every year. A good carrier contract helps shippers overcome hidden fees and surcharges. Effective carrier contract negotiations at the right time help companies get the best out of their shipping carrier contracts. Audintel’s experts in carrier contracts negotiations help shippers save money. For further information, contact us at +1 (619) 354 8539 or visit our Audintel website.

Shipping reports

Shipping reports: Optimize shipping performances with data

This holiday season, economic uncertainty and rising inflation will hit many industries. Also, these industries will face customers who want more goods and services at a lesser price. Further, shipping companies deal with high shipping costs and holiday surcharges. In addition, companies will have to attract customers with great shipping experiences.

Transportation spend solutions like shipping reports make shipping simple and easy. Earlier, we had discussed shipping reports help in reducing shipping costs. This blog explores shipping reports, managing shipping costs, and shipping metrics.

Shipping reports: its essentiality

Companies require comprehensive solutions to reduce unnecessary surcharges. Automated parcel auditing help companies in saving money to a great extent. There is less reliance on manual, time-consuming manual auditing processes. Shipping reports provide companies with complete visibility of parcel shipping history, tracking data, shipping rates, and more variables. In addition, shipping reports use intelligent automation to identify billing mistakes and overcharges and efficiently track shipments. Shipping reports by Audintel give detailed, in-depth information on carrier performance, service levels, accessorial charges, etc.

Shipping cost management with shipping reports

It is becoming increasingly difficult for shippers to understand shipping rates and complex surcharges. Shipping reports provide details of the shipping processes to maximize operational efficiency. Companies that incorporate real-time analytics can provide quality service to their customers. Shippers have greater visibility in parcel spend management with the help of real-time shipping data and analytics. Further, leveraging the right technology helps in better shipping cost management.

Shipping metrics in shipping reports

Not just shipping cost management, shipping reports play a vital role in tracking the on-time delivery of packages. Shipping metrics like on-time delivery performance by shipping carriers offer clarity to shippers. It helps them recover refunds from shipping carriers like UPS and FedEx and reduce shipping costs. Further, parcel auditing involves using business intelligence solutions to reduce shipping costs. Some of the shipping metrics that are a part of shipping reports include

  • Accessorial charge summary-summarizes accessorial charges by invoice number
  • Address correction details-detailed information about the addresses that are corrected
  • Weight adjustment details-original weight and billed weight of package adjustments are listed.
  • DIM weight verification-details the dimensional weight variations of packages
  • Lost or damaged packages details-lists the lost or damaged packages
  • Invoice summary-summarizes invoices within a time frame or date range
  • Insurance detail-shows the insurance packages, values, and charges for each package
  • Delivery status-list the delivery status of a package and confirm whether residential or commercial delivery, zone, weight, etc.

The above metrics give a glance at what to expect in shipping reports. The shipping data in shipping reports covers the various aspects of shipping a package. Companies can minimize shipping costs with quick resolution of carrier errors and additional surcharges.

Key Performance Indicators (KPIs) to track shipping performance

There are various key performance indicators (KPIs) that help in monitoring each business area. Companies benefit by spotting financial problems early, making timely adjustments, and undertaking quick decisions with KPIs. The KPIs relate to Order management metrics such as the number of shipments, shipping time, and accurate order pick-up. In addition, Transportation management metrics help improve shipping operations with freight payment accuracy, on-time delivery, and transportation costs. Using transportation management metrics, companies can automate shipping processes. They can improve inventory management and identify unnecessary charges leading to extra costs. In addition, KPI dashboards help in tracking shipping performance.

A way to lower shipping costs

Shipping reports help to analyze historical data and share results in real time. They give clarity on service errors by parcel carriers and service refunds. And so shippers can negotiate discounts with shipping carriers and lower their shipping costs. In addition, shippers use real-time data to track each shipment and reduce shipping costs. Companies can increase the delivery speed of their packages with the correct data. A parcel auditing solution provider, Audintel helps companies follow the best shipping practices and save shipping expenses.

Customized shipping reports by Audintel

Parcel auditing services of Audintel audit every overcharge and invoice error. Our services provide transparency to transportation spending management. The shipping reports provided by Audintel give in-depth information on the shipping details of shipments. Our clients can save hundreds or thousands of dollars on their parcel spend.Audintel helps companies understand their transportation spend management more efficiently. Our shipping reports track the last-mile delivery status of a package, thus giving clients peace of mind. We provide real-time dashboards and customized shipping reports that help our clients reduce shipping costs. With lower shipping costs, shippers receive a great on-time delivery experience to customers.

Conclusion

Shipping during the holiday season is crucial for all companies. Customer satisfaction and optimum operational efficiency are essential during this period. Companies optimize their shipping operations with lower shipping costs. Audintel helps companies reduce shipping costs with their data analytics tools. Our customized shipping reports allow companies to gauge their shipping expenses and save money. So, for an increase in operational efficiency and quick turnaround time, contact our services at +1 (619) 354 8539 or visit our Audintel website.

Carrier contracts

Carrier contracts: negotiate effectively for better savings

Is tracking individual contracts with multiple carriers proving to be tedious? Are you aware of the latest shipping rates that may affect your business? A carrier contract management system can give answers to these questions. Further, accessorial charges are a part of carrier contract negotiations.

Here, we will explore carrier contracts and their significance in reducing shipping costs for companies.

Carrier contracts and their significance on businesses

Shippers work with carrier companies to move goods between locations under agreed contracts. The carrier contracts work for specific customers and not the public. They are ideal for high-volume shipping operations. Further, carrier contracts give greater visibility regarding the timeline for invoice payments, shipping rate confirmation, and more. Businesses improve their bottom line regardless of dynamic markets with carrier contracts.

Examples of contract carriers are DHL, FedEx, UPS, Penske Logistics, and other large shipping carriers. These contract carriers offer specialized services to companies or organizations based on contracts. They offer customized services for a company’s specific needs. For instance, for the transport of refrigerated goods, they provide refrigerated trucks. Having a contract with the shipping carriers helps shippers reduce shipping costs and improve the visibility of the shipments.

Manage carrier contracts and increase operational efficiency

Businesses need to identify shipping data in their efforts to manage carrier contracts. Shippers can analyze their shipping data by service, weight, zone, and accessorial charges and assess contract deviations. In addition, carrier contracts are subject to changes, and updating carrier contract agreements is essential. A centralized monitoring system allows for better carrier contract management. A quick reference to multiple contracts improves the entire operational efficiency of the shipping company. Further, carrier contract negotiations are a part of good contract management.

Why do businesses require negotiations on carrier contracts?

The negotiations on the rates, services, and accessorials with the carriers are carrier contract negotiations. We have discussed carrier contract negotiations in detail in our previous blogs.

However, given the current global scenario, it is time to revisit contract negotiations with the shipping carriers.

Did you know new carrier rates affect carrier contracts?

In the latest news, FedEx has announced FedEx Express and Ground list rates and surcharges from Jan 2, 2023. You can check here for list rates. You can check here for the FedEx surcharges and fees.

These surcharges will affect the shipping rates. Added fuel costs and labor shortages are having an impact on the freight shipping rates. Further, ground transport is affected by trucking delays, labor disputes, and rising oil prices. As a result, intelligent negotiations with shipping carriers are the need of the hour. Multi-year contracts with carriers help in reducing annual rate increases. Get assistance from Audintel for negotiating with shipping carriers and saving shipping expenses.

Why is it essential to have accessorial charges as a part of carrier contracts?

Accessorial charges are fees levied by shipping carriers for any additional service provided during the transit of goods. Accessorials can impact a company’s bottom line and affect the quality of service. The most common accessorial charges for freight are

  • Detention: a fee charged by a carrier for additional time spent getting loaded or offloaded at a shipper or receiver
  • Demurrage: daily rate charge for cargo left at the terminal beyond the allotted free time
  • Storage: charges for holding containers at the intermodal terminal beyond the free time allotted
  • Per diem: a fee that a carrier charges against another shipping carrier or customer for using its trailers, containers
  • Residential delivery: surcharges for delivery of parcels in residential areas

Skilled negotiations help to avoid or eliminate accessorial charges. Shippers can schedule the docking to avoid detention charges. Similarly, keeping track of the arrival/ departure of containers and pre-clearing the cargo will eliminate the demurrage charges. Shipping carriers agree to lower prices during negotiations, provided shippers avoid accessorials.

Carrier contract agreement

An agreement between shipping carriers and companies for delivering goods, services, and fees is a carrier contract agreement. For instance, the UPS carrier contract agreement contains incentives and minimum rates as decided by UPS and the shipper. Further, it covers accessorial fee reductions and DIM weight reductions on invoices. With the correct shipping data, shippers can benefit from carrier contracts.

Audintel and carrier contracts

Carrier contract management is hard to decipher for clients having multiple contracts with multiple shipping carriers. Audintel not only manages carrier contracts for its clients but also helps in negotiating for a better price. We help in carrier contract negotiations by providing insightful data. Further, Audintel tracks shipping invoices for clients. We investigate the shipping carrier’s performance and aid clients in reworking contracts. Our experts are well-versed in negotiations and monitor the dynamic shipping rates of different shipping carriers. So, Audintel protects its clients from unwanted expenses by re-negotiating contracts with shipping carriers.

Final thoughts

Technology can optimize the shipping operations of businesses and reduce shipping costs. However, understanding the complexities of shipping rates and accessorials may confuse shippers. Audintel with its unique software tools, can help negotiate contracts with shipping carriers. We offer services that will save money and improve your overall service. Let Audintel guide you through the complex maze of carrier contracts. Contact us for any information on carrier contracts and our services at +1 (619) 354 8539 or visit our Audintel website.

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.

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Pragmatic details for shippers’ contract negotiation

Shippers need efficient parcel contract negotiation with parcel carriers to maximally reduce their shipping charges. The shipper needs to know the shipment trends and characteristics before moving for carrier contract negotiation. There are many factors that affect the cut down in pricing which needs to be negotiated carefully. Being clear with these and also knowing where the carrier can leverage his profits, the negotiation table becomes a clear platform for the shipper.

Some factors to be aware before contract negotiation

Know your shipping volume and spend based on service and zone

The shipper has to be clear about how much volume and spend he does on an average per year. This should be further split into service-based and zone-based. This would make it easy to focus on key spend areas for negotiating discounts. The key spend areas should have flat discounts or in carrier terminology, the base discounts. Also, while negotiating, the carrier, knowing these details, generally, negotiate for less discounts to maximize their profits. The shipper has to be careful in these areas and not get carried away when the shipper offers more discounts in other areas.

Know which surcharges(accessorial charges) you incur more in volume and spend

The shipper should be aware of both volume and spend as discounts for surcharges are quite lucrative. One should be clear and discrete to ask for a specific percentage of discounts in these surcharges. Some surcharges have high pricing per package and it helps to get significant discounts on them. Also, it’s worth having discounts on all accessorial charges that have minimum threshold packages.

Know if you have Dim weight or actual weight in volume and spend

Dim factor is crucial if you are sending customized packages and more often the carrier applies dim weight than the actual weight. Negotiate dim factor, especially for the packages in the services that have this. The factor should also be significant to get close to the actual weight or less. This is an additional asset to shipping contract negotiation.

Know your weightage of Domestic versus International shipping

Carriers tend to give inclined discounts to either domestic or International packages depending on the spend. The shipper can get carried away and lose on the other side. One has to be careful to get the right balance of discounts in both areas.

Know if packages are hitting minimums in large volume

More often, the packages can hit minimum and the package discount is compromised. Knowing the volume can have the shipper negotiate for the Minimum Reduction Amount (MRA). Proper MRA value helps in getting savings for shippers.

Things to be beware on the contract negotiation table

Carriers’ focus

Carriers are for customers’ satisfaction and they are generally well advised on the package flow of the shipper. They know which discounts are crucial. They make the shipper comfortable to negotiate but ensure that these areas are not discussed much. Always be alert in negotiation with the carrier. They tend to divert focus from the necessary discounts to other areas where shippers would not fetch much.

How much discount can be fetched for the annual spend of your stature?

Generally, the other shippers’ discounts are not known and hence, the trend of how much to bargain for each category of percentage has to be known from experts. The carrier is not going to give more than what the shipper asks!

Focus on getting more of Grace/Base discount than earned/performance discount

It’s worthy to get Grace/Base discount as it’s a flat discount and guaranteed. Earned/performance discount places variation based on the spend. Unless the shipper is absolutely sure of his spend, it’s always recommended to secure the Grace/Base discount.

Fetch the necessary Grace/Base discount, dim factor, surcharge discount without fail

Do not come back from the negotiation without fetching the necessary Grace/Base discount, dim factor, surcharge discount. The shipper should be prepared before the meeting with the carrier on each specific aspect and gracefully convince the carrier on these.

Consider alternative carrier and negotiate to know the value of your shipping

Its always recommended approaching more than one carrier when one is not satisfied with the present carrier. By analyzing the past shipping details of the shipper, auditing companies will help in deciding which carriers to choose. Usually, for parcel shippers, UPS contract carrier agreement and FedEx contract carrier agreement are complementary to consider.

Be careful in negotiating minimum performance to make the discounts valid

The carrier always has a clause of minimum performance for aspects of the agreement to be valid. One should be careful to set these at the minimum for the rainy season.

How does Audintel help?

Audintel helps shipping companies analyze and identify shippers’ data. Analysis of key areas where they need to be careful to get the maximum discount and to select alternate carriers. Also, the minimum threshold in others.  Audintel reports help the shippers to analyze the new contract presented by the carrier. The savings using already shipped packages with the new contract is presented. This carrier contract optimization can be done either for complete contracts or amendments.

Final Remarks

Shipping companies need a lot of input on their data. The trends where other shippers fetch the discounts. The carrier gives varying discounts depending on the awareness of the shipper. All aspects where discounts can be fetched with the maximum are clearly understood. This means, critical reporting capabilities and cost model philosophy clearly presented to the shipper. All assistance is given to fetch secure new and improved carrier rates. For further advice and services, call us today at +1 (619) 354 8539 or contact us or visit our Audintel website.