If you are looking to optimize parcel contract benchmarking, emphasize the focus is on updating carrier contracts following recent rate changes. Gibbs highlights five crucial negotiation mistakes in the parcel contract Benchmarking process.
Firstly, he emphasizes the importance of a clear end goal, urging businesses to eliminate excessive fees through parcel auditing and understand their data. Secondly, he discusses evaluating all factors influenced by contract changes, including transit times and external business partners. The third mistake to avoid is not having an exit strategy, crucial in the case of unfavorable changes or the need to switch carriers.
Professionals also address the fourth mistake – not considering a multi-carrier strategy. This multi-carrier strategy can make a huge difference in your benchmarking. They advocate for involving multiple established carriers for better rates and benefits. The final mistake is neglecting to benchmark data during negotiations, stressing its role in preventing costly mistakes.
Professionals emphasize the advantages of a multi-carrier approach, including enhanced transit times and increased locations. They encourage businesses to trust established services for negotiation assistance based on benchmarked data. Regular evaluation of shipping contracts is emphasized, considering the current economic climate and the potential impacts of volume incentives on costs. Gibbs advises adaptability and preparedness for unexpected downturns.