The intent of this guide is to demonstrate the CAO savings report and help explain the savings.
Overview
The Carrier Agreement Optimization savings report consists of three sections: total, summary and details.
- Total: shows the total savings during the period.
- Summary: shows savings by charge type.
- Details: shows savings by individual cost component.
This detailed report provides full transparency on the savings secured by Optimum Parcel as a result of the Carrier Agreement Optimization Service.
Pro Tip
The CAO Savings Report is just one of many reports that can be scheduled within your Optimum Parcel dashboard.
Summary
The summary section divides savings by charge type category.
Transportation charges are organized by service type (Ground Residential, Ground Commercial, Express, International, etc).
Non-transportation charges are organized by type (Surcharges, Fuel Surcharges, Accessorials, Other Surcharges). Savings are calculated in both the dollar amount and percentage.
Details
The savings details section lists savings by individual cost components.This gives you full transparency on the amount of savings realized down to the penny on any component charge.
Full Transparency
The Carrier Agreement Optimization savings information is also readily available within your Optimum Parcel customer account.
Go to the shipment detail view for any shipment to see transportation savings, old contract, new contract and savings calculations, as shown in the example below.
Calculation Overview
Each shipment invoiced by the carrier during a given period is analyzed by Optimum Parcel, capturing all required inputs:
- The attributes of each shipment (e.g. dimensions of package, ship from location, ship to location, service type).
- The carrier service guide active and applied.
- The revenue threshold, weekly spend observed.
- The attributes of the carrier pricing agreement, including each and every single discount and incentive type.
The original charges derived and then compared to the observed charges on the carrier invoice. Any difference between the two, positive or negative, is shown in the savings column on a per invoice, per shipment, per cost component basis.
Difference
Competitors only show a summary of savings by type. Reports are sent as confusing spreadsheets that lack detail. There’s no details on savings by cost component, and no customer dashboard to review the data. Your business deserves better.
Optimum Parcel delivers maximum transparency on cost savings reports, and is the best choice for your business for engineering carrier agreements.
Related note: redacted reports include the value within. If you are in search of the number behind this placeholder, then do refer to the proposal open.
