Carrier contract analysis and negotiation is complex; however, the data analysis tool set and combined expertise of our transportation consultants enable us to consistently deliver savings of 5-20%.
The advanced analytics and business intelligence tools provide a scalable suite of transportation cost management analysis and optimization services that help significantly reduce shipping costs across all modes of transportation, including:
In contract negotiations, pricing managers and analysts utilize their technical expertise to produce an in-depth pricing profile, which presents multiple contract structuring options to the carrier(s) throughout the negotiation process.
Our negotiation services for carrier contract ensures that you receive the carrier incentives you are entitled to and deserve. Our company is consistently engaged in multiple carrier contract and analysis projects every month on our clients’ behalf.
With contract negotiations you enjoy benefits, such as:
With a freight contract, there many advantages, such as:
Contract negotiations go beyond the carrier analysis and negotiations. The negotiations also manage the contracts and ensure your carriers are compliant. This gives you the ability to have all carrier contracts, invoices, and transportation-related data in one location, so you can manage your transportation costs across global divisions much more effectively.
Companies with manufacturing operations have evolved direct material sourcing from an administrative function to a strategic procurement process. Transportation has followed a similar evolutionary pattern, moving upstream from freight transactions to an integral component of top-level corporate planning and procurement strategy.
Here are seven strategies to elevate freight management in an organization for a more competitive supply chain advantage:
Transportation planning becomes a proactive process, rather than reactive.
Leverage technology to normalize RFP responses and analyze carrier bids at different levels of granularity. Utilize workflow automation tools to automate the RFP process.
People who understand the intricacies of transportation and bid responses can draw insights that lead to additional leverage in negotiations. Analysts who are well-versed in technology, such as network modeling tools, are especially beneficial.
When analyzing freight spend, the devil is in the details. Information systems should evaluate each mode/equipment type individually, and display each category of charge — line haul, fuel, accessorial charges — separately.
When conducting a bid package, carriers may suggest alternate options that could create efficiencies for both parties.
The ability to quickly identify and capitalize on upticks and downticks in transportation rates by various lanes and modes is essential to create a supply chain advantage.
Having a structured approach to monitoring and score-carding carriers ensures that future decisions are based on real data instead of anecdotal evidence.
Handling negotiation services for carrier contracts is a time-consuming process. It is not simply a matter of sitting down with a carrier, whereby they name a price and you agree to it. The key is that you must negotiate. Shipping freight is an expensive endeavor; therefore, it is in your best interest to secure the best rates possible.
An important factor in negotiations is the type of freight you ship. Freight that is prone to damage or theft is not profitable for a carrier, and thus is more expensive to ship.