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)?
Shipping companies maximize their profits with pricing.
Our highly skilled logistics & pricing experts utilize 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, etc.
Your contract team can set the suitable targets by service level - for meaningful savings and service levels that meet and exceed your customer’s expectations. It is guaranteed, as it should be.
I am already paying for a logistics team with experience in negotiating contracts. So why would I hire Optimum to do something our team is supposed to handle for me?
Negotiating small parcel & freight contracts represents 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. However, 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 an 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 revise them at any time. Therefore, optimum can begin by reviewing your pricing agreements, and our team of pricing experts will generate the analysis of all your cost savings opportunities.
The Optimum team focuses on delivering logistics network transformations and best-practice
See Case Studies:
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. Instead, our analysts will present you with the best cost and service options from UPS, FedEx & DHL through an RFP process. It is your decision whit which carrier services you select to move forward.
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 remind them that they are not the only ones periodically. Instead, they should work to retain your business and translate it 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. As a result, 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). Therefore, we planned our cost savings solutions to accommodate these commitments to avoid issues when negotiating carrier contracts.
How do we pay your parcel and freight contract negotiation services?
We take a free risk approach. Our compensations come from an agreed percentage of gains of the savings we help you negotiate. 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.
You are likely overpaying your carriers. We will help you stop that right away.
Am I obligated to do anything if I engaged with Optimum to analyze my freight and parcel carrier contracts for freight cost-saving opportunities?
No. Our team will perform the first Optimize™ analysis to evaluate the opportunity with your current shipping contracts. Then, we will present you with the findings for you to decide to leverage our solution and begin saving right away.
Have questions? Submit any and we’ll get back to you in 24 hours