If you're not taking advantage of freight consulting, you're playing on an uneven field.
Shippers utilizing consultants see 49% improvement in discounts |
In early 2007, PARCEL, a trade magazine for industry professionals, published a survey conducted by Morgan Stanley stating that only 11% of major shippers utilized consultants. The survey showed that those who did engage consultants to help in the pricing negotiation process realized a 49% improvement in discounts over those that did not.
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Knowledge is leverage, and lack of knowledge is exposure |
Freight 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. As illustrated by the study above, without the intricate inside knowledge of small package contracts and the workings of the small package industry, shippers acting on their own simply do not realize the level of savings available to them.
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Shippers must be aware that Account Executives working for UPS, FedEx, DHL, etc. are paid a salary plus commission/bonus and are trained to sell their company’s services at the highest profit margin possible. Account Executives (good ones) provide operational support and timely customer service. However, when it comes to contracts, they are not on your side due to the commission-based compensation structure they work under.
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Find out how you can benefit from freight consulting |
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 contact us via this 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. |