Companies’ supply chains produce vast sets of data. Every package has weight, dimensions, an origin, and a destination; every contract has parameters, like minimum price floors or surcharges.
Company leaders who can harness that data have the upper hand in negotiations with carriers. They know exactly what they ship, and as a result, know exactly what kind of service they need. Data is key to managing your shipping cost.
Further, reviewing data through a variety of lenses can show companies which areas to focus on in negotiations with carriers. Would a new dimensional divisor result in the greatest savings? Why? What can other carriers offer that the current contract doesn’t?
Many companies don’t have the time or expertise to collect, analyze and make sense of all this data. That’s why Reveel exists — to dig into company datasets and help leaders understand what their shipping profile looks like so they can negotiate the best possible contract.
Know Your Shipping Profile
Company leaders who know their data know exactly what “normal” looks like. They know their service mix, weight distribution, how many packages ship locally and internationally and whether any are imports or exports.
A shipping profile is a comprehensive portrait of shipment data. Carriers review shipping profiles to determine how badly they want companies’ business. Internally, however, shipping profiles can reveal trends that company leaders may not have been aware of. That knowledge is key to negotiating better contracts.
Take RedCat Racing, a manufacturer of remote control cars. Their products don’t weigh much, but their boxes are bulky and heavily padded. An analysis of the company’s shipping profile clearly showed that they had been negatively impacted by UPS’s switch to pricing by dimensional weight.
Company leaders negotiated for a better dimensional divisor, stopped paying for wasted space and saved a whopping 28 percent on their next contract.
Find Opportunities for Savings
Company leaders who know exactly what they’re spending money on have a head start at contract negotiation. They can recognize how much of their budget is eaten up by surcharges and how much a better dimensional divisor could benefit their bottom line. In other words, they know exactly which areas of their shipping profile to leverage.
Today, most carriers calculate costs based on dimensional weight, a combination of package size and weight. Many surcharges and fees are tacked on after packages are shipped, cutting into profits unexpectedly. And many carriers set price floors — minimum charges that companies must pay regardless of how much they ship.
All these elements are up for negotiation, and data is key. Leaders who know their shipping profile can work with partners to review their invoices, where they can easily spot extra surcharges and out-of-the-ordinary line items.
Reveel’s reporting and analytics tools can help companies audit every single invoice they receive to verify that packages were delivered on time and that bills were error-free — and our experts can help companies recover all the money they’re owed.
Adapt Your Shipping Strategy
Leaders who know their companies’ shipping profiles and understand how their budgets are allocated are ideally suited to adjust and optimize the company’s shipping strategy. Is it time to negotiate for a better rate or consider switching carriers altogether?
Reveel offers an intuitive and secure online dashboard that allows companies to produce reports in real time with all of this data. They can drill down to package-level details to increase efficiencies, as well as ask broader questions about their supply chain and accessorial surcharges.
Data is a game-changer in shipping. Reveel’s tools give company leaders actionable insights, empowering them to reduce waste and maximize efficiency every time they step into a negotiation.