Parcel Shipping Contract Negotiation Support​

Parcel Shipping Icon
​Parcel shipping refers to the shipment of packages that are less than 150 pounds. Parcel shipping is typically cheaper than freight shipping, but pricing models for parcel are evolving to help small package carriers get a competitive edge. This competitive edge can impact your company's transportation costs depending on the relationship you have with your carrier.

Transportation costs have a big impact on your organization's bottom line whether you're a small business or a large corporation. Unfortunately, many companies pay premium rates for not-so-premium services when it comes to shipping parcels. That's where AFMS comes in.
AFMS offers a wide variety of parcel services to ensure your business has up-to-date and cost-effective parcel shipping solutions. Our team of parcel pricing experts will conduct an assessment of your business for prime parcel contract optimization by conducting the following services:
  1. Benchmark current carrier pricing against the market
  2. Mode and carrier service optimization studies
  3. Package characteristics analyses
  4. A global contract compliance audit
  5. Detailed savings summary; Over 700 reports available

​The parcel shipping market is served by a combination of privately owned couriers, global integrators, and national postal operators. It's not uncommon for even the most sophisticated logistics and transportation professionals to overlook savings opportunities. 
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Our parcel pricing experts at AFMS are sure to deliver a thorough a no-cost assessment, pricing review, and benchmark analysis to identify overcharged areas within your carriers and contracts including all accessorial add-on charges.

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Parcel shipping contract negotiations support is recommended because parcel carriers typically make the rules, have the data, and set the shipping terms when it comes to their parcel shipping contracts. Parcel carriers control the formatting of the label that shippers are required to use to get their packages moved, and each parcel carrier has its own proprietary label format whether it's FedEx, UPS, or another carrier.

​Parcel contract negotiations are crucial because your contract impacts every area of your organization. Your contract impacts your corporate mail center and your distribution facility. It even impacts how your brand is perceived by your client base.
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AFMS understands that negotiating your parcel contract can have a major impact on the overall performance of your supply chain network and your company's bottom line. We also understand that negotiating with parcel carriers is much different than with an LTL, truckload, or another third-party provider. That's why AFMS offers parcel shipping contract negotiations support so you can get the best possible price.
It's important to use parcel shipping contract negotiations support to get your parcel contract back in your favor. You'll want to give your parcel carrier the right amount of time to respond, especially if you want your carrier to give you specific concessions. You'll also want to make sure that you know your data better than your parcel shipping carrier does.
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AFMS can help you yield a higher return at this stage of the process than you might otherwise while negotiating for yourself. AFMS can help your organization identify additional options selected at shipping and charges related to information issues, too.
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Parcel shipping contract benchmarking is the process of determining what improvements are called for in parcel shipping contracts and where they're called for. Parcel shipping contract benchmarking also analyzes how other organizations achieve their performance levels and how you can use this information to improve your own organization's shipping performance.
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AFMS offers benchmarking services as a valuable way for your organization to gain perspective on the effectiveness of its performance. When benchmarking is done right, your organization will understand where it stands in terms of parcel shipping and where it needs to go. AFMS removes the guesswork from the parcel contract negotiation process.

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Some of the most common reasons why carriers may issue refunds on service failures and overcharges include:
  • Non-shipments: When a parcel is entered into the carrier system and billed, but the parcel never left the shipping company.
  • Duplicate charges: When a parcel is billed more than once.
  • Late deliveries: When a parcel is delivered to its destination past the guaranteed delivery date and time.
  • Incorrect address corrections: When the carrier charges a fee for an address correction that was initially correct or wasn't a necessary correction.
  • Incorrect rate: When the carrier doesn't apply the correct discount stipulated in the carrier's agreement.
  • Incorrect dimensional weight charges: When the carrier uses the wrong dimensions or applies the incorrect DIM factor.
  • Incorrect Saturday charge: When a carrier was meant to pick up a parcel on a Saturday but did not.
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Parcel contract auditing is the review of your company's shipping bills and invoices and it's essential for reducing your shipping costs. AFMS will analyze your invoices and shipping bills to locate any instances of overcharging or service failures that may be present in your shipping history.

Every year, over $2 billion in refunds and credits go unclaimed by U.S. businesses.

In a thorough parcel contract audit, software technology is used to analyze charges and refund requests for errors or violations to service standards. Parcel contract auditing ensures that billing mistakes, delivery failures, and errors in accessorial charges are detected and recovered.
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Every shipping invoice has the potential for error. This includes shipments delivered by FedEx and UPS services. Parcel auditing ensures FedEx contract pricing optimization and UPS contract pricing optimization.


AFMS analyzes your organization's billing documents and data for these incorrect charges to ensure that your company gets the necessary refunds.