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WE MAKE LOGISTICS PAINLESS

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SERVICES

Fedex, UPS & USPS Optimization
Logistics and Operations
Visibility and Cost Control
Fulfillment Management
(In-House and Third Party)
 

Supply chain logistics is undeniably complicated. We started Optimum with one goal in mind: simplify everything for our clients.

So we set out to create a team who will guide and support you from the very beginning of your dream until you are consistently fulfilling your goals. 

This starts with the RFP process, continues through carrier negotiations, includes tracking, reporting, auditing, and much more.

Read on for an in depth look at our most successful customers in our Case Studies.

 

ABOUT

SUCCESS STORIES

HOLLAR
GROVE
GLOSSIER
KRAVE
 
Optimum Shipping FAQ
General Small Parcel Audit Questions
What carriers does Optimum Provide audit services for?
 

Optimum Supply Chain is a consulting & shipping solutions company that utilizes Optimize™, a sophisticated model to audit UPS, FedEx as well as DHL invoices for billing errors as well as late deliveries in your weekly small parcel delivery invoices.
 

Our parcel auditing service makes sure that you are billed correctly, and your service levels are met.

What are you looking for on each carrier ‘s invoice during a parcel audit?


We know that each audit line is a possible source of errors in carrier billing; hence, we seek the corresponding refunds on your behalf. The more common billing errors are address corrections, residential delivery, late deliveries, incorrect dimensional weight charge, etc. 
 

A crucial part of parcel management is continuously monitoring your shipment at the package level detail, and audit these for accuracy against your contract or agreement.
 

How do I  get started with parcel auditing service by Optimum?


To implement, we only require a copy of your most recent carrier agreement, and access to the carriers invoice or online billing repository. Once we have these, we’ll be able to run cost-saving comparisons for you right away. Our process demands little to no intervention by you or your staff and is limited to cost-saving review meetings. Our team brings with them the tools and expertise to run analysis on your shipping spend and thus provide strategic recommendations on how best to optimize your transportation spend.
 

After implementation, is there any lag time before Optimum begins carrier audit work?


No lag at all. Upon implementation, our team will report monthly details of your savings and credits/refunds found in your small parcel invoices for service failure recovery.
 

Does your auditing service guarantee to reduce shipping costs?


UPS, FedEx, and DHL provide a guarantee that they’ll deliver, for both air and ground services, your parcels by a specific date and time. These guarantees, while they may be suspended during particular periods, are nonetheless a crucial performance check against delivery failures. Carriers may, at times, request a GSR waiver to be added to the agreement in exchange for discounts or additional incentives. 
 

Optimum highly encourages shippers never to waive the ability to claim late deliveries, as these often outweigh potential incentives by carriers.

If you have a GSR waiver in your contract, we are still able to run an audit on your invoices and return savings for billing errors.
 

If my company has a general service refund (GSR) waiver on our contract, can Optimum still audit our small parcel invoices?


Optimum highly encourages shippers never to waive the ability to claim late failures, as these often outweigh potential incentives by carriers.

If you have a GSR waiver in your contract, we are still able to run an audit on your invoices and return savings for billing errors.
 

How does Optimum differentiate from other freight audit companies?


Optimum uses proprietary software, built by former members of the carrier’s pricing teams to run a thorough and effective audit. We leverage our highly trained staff of analysts and consultants to interpret the data on your behalf. Provide strategic advice for proper parcel management, so you can focus on realizing the potential of optimizing your overall spend, not just small parcels.
 

How will implementing a parcel audit affect my company's carrier relationship or level of service?

A common misconception. The most important aspect of parcel management is to ensure the services you receive are in line and that billing is 100% accurate. It is your job to remind the carriers that you are willing to move to someone else should the service suffer because your customers will suffer in return and, as a consequence, your business.

Our shipping audit services will not negatively affect your carrier relationship. Quite the opposite, we will be empowering you, with data, to have the right conversations with the carriers, so they work on keeping your business, which often results in improved service and a better more transparent carrier relationship.

How do I track those savings produced by Optimum’s shipping audit?
 

Both UPS and FedEx refunds are generated through claims filed by our auditors, directly on to your invoices. 

Our team will report monthly all the refunds/credits that came from our auditing efforts.
 

What reporting does Optimum offer?
 

Optimum provides a detailed monthly savings report for both late shipment recovery and contract optimization, comparing your new contract with your old. Re-rating your shipments as if shipped under the old contract to find your net savings from the delta.

We also provide customized and ad hoc reporting based on customer requirements.
 

How does Optimum charge for parcel freight auditing services?
 

The compensation for our engagement in audit services can be summarized in two tracks:
 

          A. A gain share model (most popular)
 

With a gain-share model, you take no risk upfront; we billed you a percentage of the net savings we recover on your behalf. (e.g., At a 40% gain-share if we recover $1,000 in net savings in a month, we bill you for $400 you keep $600).
 

          B. A monthly fee based on services and reporting requirements
 

General Parcel Freight Contract Negotiation Questions 

If we already have the lowest shipping rates possible. In what way can Optimum help or improve our shipping contract(s)?


It’s well known that shipping companies maximize their profits with pricing. 

Our highly skilled logistics & pricing experts utilize Optimize™, a sophisticated shipping rate &  analysis software, built through 15 years of rate negotiations and scores of D2C fulfillment optimization cases. 

We report the net financial impacts of earn-discount, dim factor, minimum charge, base rate discounts and more. 
 

Your contract team is enabled to set the right targets by service level - for savings that are meaningful and service levels that meet and exceed your customer’s expectation. 

Guaranteed, as it should be.
 

I am already paying for a logistics team. They have experience in negotiating contracts. Why would I hire Optimum to do something our team is supposed to handle for me?
 

The ability to negotiate small parcel & freight contracts represent a small part of Optimum’s toolbox when looking to execute cost savings on small parcel or freight contract negotiations.

Many companies attempt to run their parcel and freight audit themselves. Without the right analytics, or the know-how of former carrier pricing engineers, you could leave cost savings on the negotiating table. You deserve every discount you can get. Optimum has helped many companies recover or negotiate millions of dollars worth of transportation dollars.
 

There are also so many variables to consider when running analysis of small parcel contracts. We can help you get it right, with scenario modeling and a financial savings report you can take to the bank.
 

If I just signed a new carrier contract. How long do I have to wait before considering Optimum contract negotiation services?
 

Though carriers pricing agreements typically have a defined length of time, they are generally not contracts. They can be revised at any time. Optimum can begin by reviewing your pricing agreements and our team of pricing experts will generate the analysis of all your cost savings opportunities.
 

Will I have to change small parcel carriers? 
 

Our contract analysis & negotiation service does not require you to switch carriers or change how you operate. Our team of analysts will present you with the best cost and service options from UPS, FedEx & DHL, through an RFP process. It is your decision which carrier services you select to move forward with.
 

I want to keep my relationship with my shipping carrier. Will hiring a third-party contract negotiator jeopardize that relationship?
 

The basics of vendor management tell us that the best way to improve any vendor or carrier relationship is to periodically remind your current carrier that they are not the only ones.  Carriers should work to retain your business and translate into improved service & pricing.
 

Optimum’s solution becomes that reminder for your incumbent carrier that while they’ve already earned your business, they still need to work to keep it. We often find that customers receive a higher level of service after going through our contract negotiation process.
 

What if I signed a confidentiality agreement with my carrier. How does that affect my decision to use Optimum solutions?
 

All customers of UPS and FedEx have a confidentiality clause in their carrier agreement(s). Our cost savings solutions were thought through to accommodate these commitments to avoid any issues when negotiating carrier contracts.
 

How do we pay your parcel and freight contract negotiation services?
 

We take a free risk approach. Our compensations are based on an agreed percentage of gains of the savings we help you negotiate. This means that there are no out of pocket expenses or expensive retainers to consider.
 

How much of my time will it take for a contract negotiating process?
 

The Optimum team brings the technology, negotiating skills, and experience to help your company stop overpaying for small parcel & freight costs.
 

Our contract optimization solutions demand virtually none of your time. Our analyst team will manage the project, and guarantee all technical results, to maximize your shipping cost savings. 

It’s highly likely you are overpaying your carriers. We will help you stop that right away.
 

If I engaged with Optimum to analyze my freight and parcel carrier contracts for freight cost-saving opportunities, am I obligated to anything?
 

No. Our team will perform the first Optimize™ analysis to evaluate the opportunity with your current shipping contracts. We will present you with the findings for you to make a decision to leverage our solution and begin saving right away.
 

Have questions? Submit any and we’ll get back to you in 24 hours

The Optimum team focuses on delivering logistics network transformations and best-practice

implementations
 

ABOUT OPTIMUM

The Optimum team aides companies in finding and executing efficiencies along their entire logistics network, from factory to customer, through DCs and fulfillment centers that they run or have partners managing. By understanding our customer’s operations and business model holistically, improvements to logistics are coordinated with the goals of the entire business. The Optimum process results in faster delivery times, increased operational efficiencies, reduced shipping costs, and better product margins.

For more information

See Case Studies:

 

CONTACT

Inquiries

For any inquiries, questions or commendations, please call: 408 337-6125 or fill out the following form

Head Office

PO Box 24

San Jose CA 95113

 

info@optimum-sco.com

Tel: 408 337-6125

 

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