Contract Negotiation

Another effective way to help reduce your shipping costs is modifying and optimizing your current Fedex/UPS contracts. Freight and parcel shipping contracts are usually aimed at maximizing profit for the carriers and consist of multiple factors that determine the final shipping cost of a package. Betachon has a negotiation team specifically devoted to finding errors on your carrier contract and obtaining a larger discount for your small parcel and freight shipments. Whether you are shipping ground, express, or international, you are most likely eligible for steeper discounts. Betachon uses a custom built software and specialized contract negotiation team to maximize your discounts and find the best rates possible. In addition, our broad knowledge of the industry and existing relationships with the carriers facilitate our ability to maximize the savings on your small parcel and freight contracts.

We will develop a report of recommendations for areas where you can negotiate parcel spend savings. The report will include a list of negotiable items, with supporting benchmark data when applicable, to be used by you in the negotiation process. Additionally, Betachon will review carrier RFP responses and provide feedback to support your negotiation position.

Scope of Work

Services in our proposal include the following tasks:

Import Client electronic invoice data files and build a database of the shipments for analysis

Create client shipment profile reports with key shipping attributes and metrics (Service Mix, Spend by Accessorial Charge, Cost/Pkg, etc.)

Determine Client contractual and effective (with minimums) discounts by service type

Create Shipping profile and discounts analysis and list of negotiation items (with back-up detail for each item)

Package level detail database creation (with generic service types) for distribution to bidding carrier(s)

Proposal response analysis and follow-ups and clarifications based upon carrier response

Net cost impact analysis based upon current baseline charges and carrier proposals rated against historical shipment data

Client monthly savings report versus baseline (versus baseline current spend)

All consultations during the negotiation process through the life of our engagement are included in the project fees.

Analysis of Shipping Profile


Corporate Spend

Zone Distribution

Weight Distribution

Packaging

Package Dimensions

Shipment and Pattern Densities

Residential vs Commercial Destinations


Deliverables

Project Report in Word or Microsoft Power Point format, presentation for shipper and carrier view.

RFP response review and negotiation support

Project Fees

Determined by calculating a gain/share percentage of savings. The fee will be based on a percentage of transportation spend reduction of the new negotiated contract versus the current contract over the duration of the new contract (3 years). You will recognize 65%, 70% and 75% of the cost reductions savings with the remainder of the savings to Betachon Freight Auditing as the gain/share fee over the first 3 years respectively. Quantifiable internal process changes can contribute to savings totals as well as recommended alternative service and carrier usage.

Why Betachon?

Betachon employs a highly experienced staff who formerly worked for shipping carriers like FedEx and UPS. A part of the department is specifically devoted to negotiating a contract that yields maximum savings for you. Similar to our parcel and freight audit service, we only charge you based on the savings. So if we can’t negotiate a better rate, you don’t pay a cent!