Level the playing field when negotiating parcel shipping contracts

By Mike Erickson

Carriers’ Upper Hand
However, initiating a competitive bid process in today’s parcel environment is a complex process where carriers have a distinct advantage that must be overcome to force transportation costs down. Is it the right strategy for you?

First, consider why carriers have the advantage when it comes to negotiating. They’ve made the rules and set the structures. It’s their game. Their complex rating structures and fees were born out of the carriers finding ways to make money by having the inside track on all costs involved. This gives them a better understanding of the “cost to serve.”