USING CARRIER DIFFERENCES TO GAIN LEVERAGE IN YOUR NEXT PARCEL CONTRACT NEGOTIATION Understanding the various nuances of each carrier’s service offerings can pay off big when negotiation time rolls around.
By Rob Martinez
26 PARCELindustry.com SEPTEMBER-OCTOBER 2017
ozens, if not hundreds, of articles have been published on contract negotiation: the dos, the don’ts, benchmarking, cost basis negotiations, and so on. While these tips are certainly valuable and important, many shippers tell me they’ve long followed these prescriptions but have taken negotiations as far as they can. Universally, they ask me: "What else can I do to gain leverage and maximize service and cost reduction?" What I’ve found is that many shippers don’t really understand the pricing and network differences between the two major parcel carriers; therefore, they don’t properly leverage those variances to maximize service and cost savings. While FedEx and UPS have many overlapping products, pricing struc-