Friday, July 8, 2011

Taking the Negotiating Out of Negotiating

Rate negotiating can only get you so far, and can only do so much. What logistics professionals sometimes forget is that it is possible to essentially take negotiating out of the equation when entering into talks with carriers by completing a thorough analysis of your company's detailed shipment history.

By using your shipping history to determine your company's unique shipping characteristics and create an accurate profile based on those characteristics, you can effectively prove to your carrier that you do have visibility of your supply chain, and are aware of any trouble spots. When you are able to show your carriers, for example, that although they may show that you are only sending one package to every address, your data confirms that you are actually sending three to every address, you open yourself up to receiving better incentives. And what's great is that you're doing it without trying to change your carrier's pricing practices!

The truth is that having access to qualified data is often the only way to open the door to having a truly healthy carrier partnership. It is much easier to qualify your company for better incentives and ensure your carrier's profitability when you have data to back up your claims.

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