Stay online for Part 2 of our convention ups of the blogging series. We will respond to the following information: all shippers should approach a new agreement with clear and specific objectives. It is not necessary. Shipping is a competitive industry, and you can let Messengers fight for your business. But how do you do it? FedEx and UPS each have very complicated contracts and it is difficult for online sellers to understand all the variables that exist under these conditions. We design and model your new contract – and test it – to ensure savings, services and operational security. Let us show you how to negotiate with your carriers and reduce your costs. The smallest of them are hidden in the fine print of transit contracts and can prevent the application of discounts, thus preventing large shippers from making serious savings. When you write, you may get a 3% discount, but if it is applied 0% of the time you leave with a 0% discount. The minimum parcel is usually more than 20% of all shipments. Unfortunately, the earned discounts are never applied to these 20% of packages.
Understanding the impact of a 3% discount on your transit agreement begins by understanding how discounts and minimum wages are integrated and applied. A few years ago, there were three full-service carriers that offer ground, air, hundreds of weights and international services. FedEx and UPS are currently the last two carriers to serve the entire U.S. with fixed-term deliveries. Both offer the same type of services and compete for the same customers. Five years ago, there were more than 50 accessory charges for the two large carriers. There are now more than 200! The network operator`s new data collection technology allowed them to more efficiently calculate accessory costs than they no longer physically had in the past. Contract negotiation is not something that can be done in an afternoon. Once you`ve gathered all the necessary data, the numbers should highlight your pain points.
If you really want to control your shipping costs, stay informed and don`t hesitate to use outside help for your transit contracts. More than 50% of U.S. companies have outsourced part of their distribution process. It may be more important to use a consultant to help you choose, do benchmarking and negotiate your airline. If transportation processes change over time, a shipper`s knowledge must also be required. These details, among many others, ultimately allow airlines to make a profit if shippers save money. To avoid this, Carrier`s contract revisions and negotiations are correct! Most shippers find arrangements too complex or structured in a way that is too confusing to understand. On the other hand, most companies only see discount incentives and do not take into account other aspects of pricing. It is therefore important that shippers have identified an exit strategy in their contracts so that in the event of changes affecting your terms, they can make adjustments or withdraw completely from the contract. But the real ride here? Changes are going to happen and you need to be prepared for them. UPS prohibits shippers from reselling or offering incentives to third parties without prior written upseing agreement. Failure to comply with this prohibition may lead to the immediate termination of the contract and all applicable incentives.
Addresses and account numbers in this part are not subject to the additional fees of third-party UPS. In addition, airlines often want a shipper to waive the right to the “one-off or free” guarantee. Don`t ever do it. Once you see this number, you need to find a good DIM factor that allows you to send a large percentage of your packages with their actual weight. Why not all of them? Now, if you ask for a DIM factor to cover 100%, the support will calculate you more elsewhere to do so.