We’ve successfully coached thousands of clients through small parcel contract negotiations and collectively saved them more than $1 Billion, with typical savings between 15%-40%.
Benchmarking: Negotiation success starts with the data. We conduct a thorough analysis of the client’s parcel shipping history and match that with our proprietary knowledge of market-appropriate rates. The savings are often in the details, and our rigor along with our expertise allow us to determine where savings potential exists. We do all of this work upfront before signing any client agreement.
This process takes one week:
Step 1: Run analysis of company’s parcel invoice data.
Step 2: Establish baseline.
Step 3: Project marketappropriate rates for each service and surcharge.
Step 4: Determine if there is savings potential.
Negotiation Strategy: Armed with data, we move to strategy. We probe what is most important for our client’s success. We know getting a good deal is only beneficial to our client if it aligns with their priorities. Once we understand our client’s priorities, how can we level the playing field? What's the business case that creates a compelling financial rationale for the carrier? Finally, how can we set a negotiation schedule that works in our favor? What schedule will allow sufficient time for proposal analysis, but also move expeditiously to capitalize on negotiation momentum?
Behind-the-Scenes Negotiation Analysis and Advising: We are a constant advisor throughout the negotiation process, working with our client behind the scenes to review, evaluate, and analyze carrier proposals. Using our analysis to uncover opportunities and limitations of the proposals, we craft responses and alternative proposals for the client to send back to the carriers, until we've gotten to their best offer. Following our negotiation schedule to maintain the appropriate sense of urgency around the negotiation process, this phase typically takes two to three weeks.
Compare Value and Implement: This final step typically runs 2-3 weeks. Our total playbook process is 6-8 weeks. With both best and final proposals in hand, we projectthe value for each, along with the trade-offs, bringing clarity to our client’s decision-making process. Once a decision is reached, the client can execute a rate agreement and begin to implement.
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