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 within 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

www www.optimum-sco.com

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