How freight consulting worksFreight consultants are industry insiders who possess detailed knowledge on how Carriers build profit and risk protection in their pricing and contract agreements through the use of sophisticated cost-to-serve pricing models. The management of small package and LTL (Less Than Truckload) freight is in a constant state of change, and more expensive and complex than ever before. In the world of freight cost reduction, knowledge is leverage - and lack of knowledge is exposure.
In the small package freight industry, you don’t get what you deserve - you get what you negotiate! |
Knowledge is leverage, and lack of knowledge is exposure |
If you, the shipper, approach your Carrier and ask for a discount, the assigned Account Executive is going to test your freight industry and pricing knowledge. Any discount offer that may be extended to you will be based on the level of knowledge you exhibit. Remember: their job is to maximize the profit margin on your total net spend with their company. Despite volume leverage shippers may have, national carriers such as UPS, FedEx and other regional carriers will offer the smallest token discounts they can get away with. In the small package freight industry, you don’t get what you deserve - you get what you negotiate!
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Leveling the playing field |
When a Carrier Account Executive is contacted by a freight consultant acting on behalf of a shipper, the account management tactics by the Carrier change dramatically. They must now deal with a peer and expert in their field. Much of the gamesmanship typically exercised by Carriers is immediately discared and hard, productive negotiations begin. These negotiations can still take from 3 to 6 months before an agreement is reached.
With an aggressive - yet respectful - approach, PMG pursues a contract structure and discount level that is well beyond the decision control of your local Account Executive. To achieve our sole goal of obtaining the maximum cost reduction in your small package freight net spend, the local Account Executive essentially becomes the messenger as the negotiations rise to the District and Regional levels and conclude at the Corporate VP level. Now is a good time for shippers to look hard at their freight expense and explore freight cost reduction options. |
PMG works in your best interest |
PMG benefits only from what you gain in savings, so we work exclusively in your best interest. By maximizing discounts and structuring the contract to favor the shipper, not the carrier, freight consultants are self-funding on a net spend basis. Every Executive Officer and Director of Distribution is aware of the high cost of freight as a percentage of sales and the impact freight expense has on their overall operating budget and profit margin. What most of them aren’t aware of is how to effectively reduce their inbound and outbound freight expenditures without sacrificing customer service performance. Don’t make the common mistake of dismissing freight as an uncontrollable expense.
Whether you choose to explore the services PMG offers, we encourage you to contact a freight consultant and get an unbiased “insider” analysis of your current position. For absolutely no cost, PMG will thoroughly evaluate your position and determine if savings opportunities exist. The good news - they likely do! Remember, at PMG we have significantly increased savings on 95% of all the small package and LTL contracts we have evaluated. We have even been able to secure sizeable discounts for start-up companies with no prior shipping activity. Get help and realize the benefits a freight consultant can provide. Call PMG by phone at 805-984-4114 or via our Contact Us form to initiate a dialog with us. If nothing else, you will likely learn something about freight cost reduction that will benefit your company’s operation and expand your base of knowledge. |