How can a company save money even with a bad UPS agreement? There are many reasons that shippers cannot get the best in class pricing for UPS or FedEx. They could not have significant volume, less than desirable package characteristics, or they are located in a remote area. Let us explore some options to save money on UPS shipping even with a bad agreement.
Audit your UPS invoices
All UPS shipping contracts come with specific service pricing and service guarantees. In short, if your package is delivered late, you are entitled to a refund for the transportation charges. We call this the “on time, or it’s free guarantee.”
Unfortunately, most shippers cannot audit every shipment. This is where companies like Refund Retriever will help. Let us inspect your invoices and have the late packages refunded each week. Recognizing that some shippers are overpaying, recouping these late deliveries is the first step to make shipping a competitive advantage. Learn more about UPS auditing here.
Investigate Organization or Credit Card Discounts
Many shippers participate in trade or professional organizations that leverage the buying power of the whole to benefit each member individually. This leverage applies to hotels, car rentals, and even logistics. Therefore, reach out to your current contacts to inquire about group rates. In the past, FedEx offered discounts to American Express customers. This offer changes frequently, so check your membership benefits for terms and discount limits.
Renegotiate and Monitor as the Business Evolves
UPS agreements are usually negotiated based on the current shipping volumes and requirements. Shipping volumes can change with the opening of a new distribution center or additional product launches.
Anytime shipping patterns change, there is an opportunity to reopen rate negotiations. Timing is not a huge consideration, regardless of how recently you may have signed your last agreement.
Many shippers think it’s time to relax once their UPS agreement is in place. Logistics managers should actively monitor costs on the whole. Carrier service charge definitions change, and service guide applications change without much notice. Before this year, the UPS additional handling charge applied to packages with an actual weight of 70 pounds or greater. But in 2020, any package with an actual weight greater than 50 pounds has $24.00 added to the cost.
What is your next step?
In conclusion, your UPS rates under the current agreement might be the best you can achieve. Saving money on UPS shipping, even with a bad agreement, is still possible. There is no reason to investigate possible steps to decrease your UPS spend. There are a plethora of procedures you can employ to increase savings on shipping that doesn’t require a new UPS agreement. Contact Refund Retriever to learn more!
