Negotiating Parcel Contracts for 2010

With the 2010 FedEx and UPS general rate increases now implemented, many shippers are feeling the squeeze on their transportation dollars.

Needless to say, improvements to your carrier pricing can ensure greater profitability and marketplace competitiveness. While there are many strategies shippers can use to reduce shipping costs, we'll focus on carrier contract negotiations. Here are five key areas to consider.

MINE YOUR DISTRIBUTION DATA
Before stepping up to the negotiating table, develop reports to understand service usage, seasonality, weight ranges, zonal distribution, nonfreight (accessorial) charges, cost per shipment, residential/commercial mix and other metrics.