Mistakes to Avoid When Negotiating Your Next Shipping Carrier Contract
In summary, there are many pitfalls to avoid when negotiating your carrier agreements. Take the time to develop a valuable relationship with your current carrier, but be sure to invite nonincumbent carriers to participate in annual bids — and give them a real shot!
To maximize savings, do your homework, including meaningful benchmarking, and direct carrier negotiations through a formal bid. Take the time to understand and negotiate terms in addition to discounts.
Finally, explore using market experts if you think you might need help with contract negotiations. At a minimum, take advantage of their complimentary benchmarking and market assessment.
Rob Martinez is the CEO of Shipware LLC, a professional services firm that transforms businesses through intelligent distribution solutions and strategies. Rob has helped some of the world’s most recognizable brands reduce parcel shipping costs an average of 25 percent through contract negotiations, rate benchmarking, modal optimization, invoice audit and other savings vehicles. A cum laude graduate of UCLA, Rob has 20 years of transportation industry experience, including executive positions at DHL and Stamps.com, in addition to his work as an outside consultant since 2001.