Every logistics manager knows the importance of their carrier relationships. A lot is riding on your carrier—protection of your goods, budget, on-time delivery, and your customers’ satisfaction level. When it comes to negotiating a parcel contract, many logistics professionals take pride in being able to negotiate the best shipping

Because they do it every day, carriers know their way around a contract. After all, it is under their terms, and the success of their company is dependent terms and rates; however, don’t discount the idea of having a third-party consultant help with your small parcel contracts. The information they have access to can make a significant difference in your rates. on how well they can negotiate. Shippers, on the other hand, don’t have nearly the same amount of experience with contracts. But skill level comparisons are not really the issue; it’s about who has access to the most accurate and relevant information that will give them the upper hand. In 99.99% of negotiations, it is the carrier.

Parcel shipping is getting expensive. In reality, it already was costly and now it is even more so. The recent rate increase announcements from UPS and FedEx means that it will cost more money to ship in 2018.  Reducing parcel shipping costs, without sacrificing service, has become a concern for many businesses. Profit margins continue to narrow for ecommerce companies meaning they will need to make sure that their parcel shipping strategy not only fulfills customer demands but also saves money.