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For many businesses, shipping is a large portion of their operating expenses. It’s a cost that not only increases with sales but also increases over time. Between yearly carrier increases and incremental surcharge hikes, just keeping shipping expenses stable is a tough job.
What makes it even more difficult are complex carrier contracts. They’re difficult to read and filled with jargon, fine print and caveats. And it’s not over once you’ve signed your carrier agreement. There are still a few hidden trap doors you can fall through that will hike up your rates and impact your bottom line.
There are three key reasons you should stay on top of your shipping agreement:
- First, ensure your shipping volume matches your discount tier. Monitor your shipping spend to make sure you’re on track to hit your earned discount—and prevent an unexpected drop in revenue tier.
- Carriers won’t let you know about expiring discounts. Not all discounts are guaranteed for the life of your agreement, and carriers aren’t knocking on your door when the discount period is over. Track when they expire so you can take action well before costs go up.
- Be on the lookout for contract improvements: Carrier reps are looking to keep your business, not save you money. It’s up to you to identify the discounts and incentives that would benefit your business most. The best way to do that? Track your shipping costs, surcharges, zones and more so you can bring that information to your next contract negotiation.
There’s good news! You can prevent these pitfalls by staying on top of your shipping contract and taking an active role in your agreement management.
The Reveel Shipping Intelligence® Platform makes it easy to manage your shipping agreements, keep track of expiring discounts and monitor your shipping costs. Plus, so much more.
Dig into why you should actively monitor your shipping agreement and see how our Shipping Intelligence Platform can help you solve them with this eBook.