FedEx and UPS are currently the only two parcel carriers servicing the whole United States with time-definite deliveries. Both carriers offer the same type of services and compete for the same clients on a daily basis.

Knowledge is power, and this is especially true when it comes to carrier contract negotiation.

Package characteristics are the most important thing to understand in the parcel negotiation process. Carriers analyze your historical shipping data and overall profile to determine what discounts to offer.

So when was the last time you took a look at your UPS or FedEx agreement? How can you approach a UPS or FedEx shipper agreement negotiation with confidence? Let’s discuss some basic strategy.

Step 1: Establishing your current volumes and costs

Carrier representatives have a full arsenal of reports and data with how much you ship each year and where the shipping dollars are applied.

The first step I recommend to any shipper is to establish your baseline. Figure out where your money is actually going.