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Negotiation Strategy to Reduce Freight Costs

Modes We Negotiate

Trans-solutions has been negotiating parcel since 1990 and has saved clients over $350,000,000 in aggregate.  Our specialization in small parcel negotiation can cut your costs 10% to 35%.

Case Study: Parcel Negotiation Nets $21M

First and Last Mile
Lately, everyone wants to know about last mile carriers.  The first thing you need to know is they aren't all the same.  If fact, some are vastly different but appear the same.  In fact, we define this mode of transportation as going from Last Mile to White Glove.  Click on link to see our work/ carrier type/ cost continuum.   To get the best service at the lowest cost, you need to know the carriers and there are hundreds of them.  Let Trans-solutions help you match the right carrier for your freight to satisfy your customer expectation.

Chart: Last Mile vs White Glove Differentiation

Over-the Road
There are many choices with FTL and LTL providers, but more competition doesn’t ensure the best rates. Often creating the best match between freight and carrier is what makes the difference. e.g., some carriers love retail, some hate it.  Some love delivering to CPG, others avoid it entirely.  Trans-solutions will work with you to match your freight with specific carrier preferences, by lane and freight type, drive down your cost and enhance your service.

Case Study: Truckload Rate Improvement & Mode Optimization generates 9.2% annual savings

There is a monopoly in most parts of the country when it comes to negotiating rail contracts, but Trans-solutions has been successful in getting capacity directly and through 3PLs at best-in-class rates to move your freight economically if transit times allow.

Case Study: Tier 1 Margin Supplier Improvement

Involves negotiating both TL drayage from the rail, and in many cases the rail rates themselves. Trans-solutions knows the players based on geography to maximize your negotiation leverage where many other consulting firms see none!

Managed Transportation Services (MTS)
Should you outsource your transportation operations?  There are many reasons to do so, but it's not always the best option for you.  Trans-solutions will help you understand the benefits of outsourcing your transportation and qualify real savings.

Air freight
Air freight forwarders and integrators are masters at the accessorial charge. Knowing which ones will be accessed on your freight and which ones should be discounted or waived can save you plenty.  Working with a consultancy that has negotiated with these providers for 30+ years can be the agent to lower your shipping costs.

Ocean Freight
Most shippers negotiate with Freight Forwarders not the Steamship lines.  NVOCC's buy capacity from the SSL's, therefore don't have negotiated rates for all lanes.  Matching the lane to the NVOCC and or going directly with Steamship lines is the difference in getting good service and best pricing.  What's more, the devil is in the details with ocean freight. Air freight and ocean freight forwarders compete in having the longest list of accessorial charges.  We’ll help you understand which accessorial charges are legit and which are not and negotiate your rate as if you are a $10,000,000 shipper.  

Case Study: Global Air & Ocean RFP generates multi-million savings & best fit forwarders

Truck Fleets
Are you considering incorporating a dedicated fleet or in-house fleet into your Supply Chain strategy?  This is a big decision.  Make sure you know more than just the pros and cons.  Even in times of low-cost freight, dedicated fleets can be financially justified in certain scenarios.  In other cases, justifying them when service is not the driving issue, can be very difficult.  Trans-solutions will help you make the right choice and show you the real ROI.

Third-Party Warehousing and Fulfillment
Are you trying to navigate the 3PL fulfillment world?  How do you know if and how one provider is better than another beyond the sales pitch?  How do you ensure the attention they give you during the sales processes carries through the contract?