you ship lots of packages and spend tons of money with the parcel
carriers. Millions even. You’re a big customer. You’ve been invited to
their hubs. And to major sporting events. Once a year, you get a visit
from a high ranking title from Atlanta or Memphis. You’ve even been 
assigned a dedicated, national account representative who’s in your building all the time.
Then why do you feel like such a small fish when it comes time to negotiate your 
parcel contract?

Make no mistake about it. It’s harder now. And you’re not alone.
In our 2011 PARCEL Survey on Pricing & Benchmarks, by a margin of 4 to 1, ship-
pers feel it’s harder today than ever to negotiate parcel contracts. Asked why, the top
four responses were: 1) Lack of competition within parcel provider market; 2) Carriers’
focus on yield management; 3) Pricing has become commoditized; and 4) FedEx and
UPS have a tacit agreement to avoid pricing wars.

Part One of this article addresses several challenges to negotiating best-in-class parcel
agreements in today’s margin-focused market. Part Two provides suggested strategies
and solutions.  

Download the PDF to see the full article with graphics.

View RobMartinez.pdf