Freight Contract Optimization Produces Big Savings
Today's marketplace is more competitive than ever. Companies are constantly looking to operate more effectively. Freight contract optimization can represent a big opportunity to save money and streamline transportation expense. Small parcel and LTL carriers generate billions of dollars annually moving product from Point A to Point B. They know their business and how to price. Unfortunately, the shipper-company often negotiates without the expertise of a seasoned specialist that can save the company hundreds of thousands of dollars annually. Smart shippers will hire a professional with the right background and experience to level the playing field against carriers that increase their freight rates.
Your Carriers are Smart, Educated, and Designed to Profit
Looking at the U.S. Transportation Industry alone, the two leading parcel carriers generate nearly $100 billion dollars annually. Add an additional $300 billion for the trucking (LTL and TL) sector and you've got a collective giant that knows how to operate profitably. Don't be fooled, they know their business and hire and train representatives to price and negotiate in favor of the carrier. They discuss pricing on a daily basis with dozens of different companies. This environment adversely affects the shipper-companies along with their bottom-line. This is best combated by properly identifying and employing an expert advisor that specializes in carrier contract optimization
Why hire a Freight Rate Professional?
Nearly five years ago Parcel Magazine first reported a staggering and sobering reality. After extensive research, they concluded that, €€Although companies who use consultants to negotiate rates have deeper discounts, still only 11% of companies use them€. Today, the trend is up, more and more companies are hiring independent transportation consultants to assess and help their transportation and supply chain departments streamline and optimize freight rates. Why? Because the math makes sense.
Real, Hard Dollar Savings
Companies that outsource and hire a professional freight-rate specialist can realize 15% or more in reduced transportation expense. In other words, if a company spends $10 million dollars annually with a parcel carrier, they could stand to save $1.5 million annually. That's not insignificant, especially when the global, executive-mandate for most companies is to €cut-costs'. Transportation specialists dig deep into contracts to streamline rates, minimize miscellaneous charges, and simplify tariffs.
When supply chain-related savings is a priority, companies should explore hiring a professional that focuses on freight contract optimization. Companies that manufacture and distribute their products both domestically and globally can save millions of dollars in freight-related expenses by streamlining contracts. Optimized freight rates and contracts provide the truest definition of operating €lean'
Your Carriers are Smart, Educated, and Designed to Profit
Looking at the U.S. Transportation Industry alone, the two leading parcel carriers generate nearly $100 billion dollars annually. Add an additional $300 billion for the trucking (LTL and TL) sector and you've got a collective giant that knows how to operate profitably. Don't be fooled, they know their business and hire and train representatives to price and negotiate in favor of the carrier. They discuss pricing on a daily basis with dozens of different companies. This environment adversely affects the shipper-companies along with their bottom-line. This is best combated by properly identifying and employing an expert advisor that specializes in carrier contract optimization
Why hire a Freight Rate Professional?
Nearly five years ago Parcel Magazine first reported a staggering and sobering reality. After extensive research, they concluded that, €€Although companies who use consultants to negotiate rates have deeper discounts, still only 11% of companies use them€. Today, the trend is up, more and more companies are hiring independent transportation consultants to assess and help their transportation and supply chain departments streamline and optimize freight rates. Why? Because the math makes sense.
Real, Hard Dollar Savings
Companies that outsource and hire a professional freight-rate specialist can realize 15% or more in reduced transportation expense. In other words, if a company spends $10 million dollars annually with a parcel carrier, they could stand to save $1.5 million annually. That's not insignificant, especially when the global, executive-mandate for most companies is to €cut-costs'. Transportation specialists dig deep into contracts to streamline rates, minimize miscellaneous charges, and simplify tariffs.
When supply chain-related savings is a priority, companies should explore hiring a professional that focuses on freight contract optimization. Companies that manufacture and distribute their products both domestically and globally can save millions of dollars in freight-related expenses by streamlining contracts. Optimized freight rates and contracts provide the truest definition of operating €lean'
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