Before Participating in a Competitive Bid Event with Parcel Carriers: Essential Information
Know Your Data: Carriers have advanced analytical software and a thorough understanding of their customers' shipping profiles. This information plays a crucial role in ensuring their profitability. It is crucial to understand all aspects of your pricing structure and data before entering a bid event. Even small changes in your parcel agreement can significantly impact your financial success.
The Empact Solution: Our parcel analysts have analyzed thousands of agreements and provide cost-saving solutions by leveraging carrier shipping data.
Set Deadlines: Carriers tend to delay the negotiation process when they know rates are being discussed. To avoid this common sales tactic, it's important to set reasonable deadlines that both parties agree to at each stage of the bid event. This will lead to a prompt timeline and a smoother negotiation process.
The Empact Solution: We oversee all aspects of the bid event, including milestones and deadlines, providing strategy, analysis, and expert advice to put you in control during the negotiation.
Focus on Details: Pay close attention to every detail of your shipping profile and carrier agreement. Make sure to question any changes, additions, or removal of verbiage before signing a new agreement. Pay particular attention to discounts, earned discount tiers, minimum charges, accessorial mitigations, and fine print to avoid negative impacts on your parcel program.
The Empact Solution: Our experts have helped hundreds of clients negotiate competitive pricing and achieved an average of 27% annual savings. Our analytical tools will break down each shipping profile in granular detail.
Consider Other Carriers: While it's common to have a preferred carrier, including other carriers in the bid process can lead to significant cost savings. Successful negotiations often come from bringing non-incumbent carriers, such as USPS, DHL, or regional parcel carriers, into the process.
The Empact Solution: Our team members have extensive industry knowledge and can advise on introducing other carriers for optimal savings.
Watch Out for Fine Print: Depending on your package characteristics, certain terms can make the difference between a good and a bad deal. These may include minimum charge, dim divisor, GSR waiver, accessorial mitigations, and term of agreement.
The Empact Solution: Empact has a list of 38 items, in addition to those mentioned above, that are checked before advising clients to sign a new proposal. Our contract management services help clients secure the best parcel rates in the market.