2021 is approaching quickly. As your company prepares budgets for the year ahead, you may be receiving an annual GRI (General Rate Increase) from your transportation logistics providers. What is your organization’s strategy? Will you simply absorb the costs, renegotiate, or go out for bid?
Many components play into this decision, but if you’re considering renegotiation or issuing an RFP, here are four factors to keep in mind:
Being upfront about your needs and actual freight profile will avoid issues and potential surprises down the road. Provide at least 60-days of historical shipment data, including freight class and commodity info, along with seasonal volume variances, images or freight and packaging for the most accurate pricing quote.
2. Rate Base
Don’t miss an opportunity to improve your costs and efficiency by restricting the rate base. Allowing carriers to use their own rate base results in more accurate pricing and flexibility to serve you better at their best rate.
Take a look at strong regional carriers to balance your network of providers for the geographic spread of your freight and improve competitive advantage and sustainability during industry shifts.
If you’re not already, take a hard look at negotiating your freight as a service vs. a commodity. This shifts the conversation from price alone to give you leverage for negotiating on the basis of service and quality along with price. Commitment to on-time arrivals and delivery of undamaged goods are critical elements to the success of your supply chain and should be considered in the negotiation process.
Ready to make the switch to a new logistics transportation provider in 2021? Visit https://247expresslogistics.com/request-a-quote/ to request a quote or call 866-866-2477 today!