Truckload, Air, Ocean, LTL and Parcel rates are rising. Carriers are regularly announcing price increases. Their increases significantly impact YOUR BOTTOM LINE. But what can you do, you have already negotiated a good discount. Most companies tend to focus all of their energies on the “rate” and / or discount. While not wanting to belittle the importance of this major area; There is much more on the table that can reduce your costs than just those two items. Your negotiations must have a much broader focus than Rate and Discount.
Negotiations ARE a process of give and take. With Transportation negotiations, it is also necessary to have a WIN – WIN exchange. Why is this so important? If there is not enough profit in the rate, the carrier will frequently “not have equipment available” when you need them. Paper rates are not worth the paper they are written on.
Carriers look at total cost to serve and total revenue from service. Their goal will be to maximize the net profitability between them. Therefore there is a give and take between services offered and pricing. It is far more than a simple question of “What is the rate?” To get the best freight cost result, you have to consider that “Everything Is On The Table !”
For additional Information, see our white paper : Carrier Negotiations – It’s All On The Table.