Whether you’re shipping thousands of packages per month or running a smaller business that ships only a few shipments each year, efficient freight negotiation with carriers can mean huge cost savings. And it’s the simplest way to convert those cost savings directly into profits.

How often do you negotiate freight rates?

However, many businesses are missing out on potential savings by not maximizing their carrier contract negotiation leverage. The key to successful rate negotiations is knowing what to look for. That starts with a comprehensive understanding of your company’s shipping volume, patterns, and priorities.

Strategic Freight Contract Management also important to keep up with market trends, including seasonal fluctuations and industry issues like economics and politics, that can affect supply and demand for truck capacity in your transportation lanes. Using a rate check tool that provides accurate, up-to-date market information will help you begin the rate negotiation process with confidence.

Negotiating rates with your shipping carriers is a complex and time-consuming process that can be difficult to manage without specialized expertise. Investing in a reputable rate procurement solution that provides expert-level support can make all the difference in your success at the negotiation table.

Using a freight and small parcel contract pricing optimization service will provide you with the data and insight you need to negotiate with your carrier partners from a position of strength. This includes analyzing current UPS contracts and FedEx agreements to identify opportunities to reduce your shipping costs. But, it’s also important to remember that it’s not always just about the price; it’s about negotiating the right value for your company.