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Is your invoicing system missing revenue on contract engineering savings?

You are losing money through current carrier agreement negotiation on peak season surcharges
For those involved in transportation management solutions, there’s a high probability you are incorrectly calculating the true savings secured for services like carrier agreement negotiation if you are using spreadsheets to show your customers changes in transportation spend. The complex analysis required to evaluate the financial impact of even the most minor change in a carrier contract exceeds the capabilities of Excel. You are missing out on revenue without realizing it.
Optimum Parcel is proven to lower transportation spend through highly intuitive tech. With the holidays fast approaching, this article will answer five common questions asked about the Carrier Agreement Optimization Service during the peak shipping season.

Carrier Agreement Optimization and Peak Season Surcharges

Can I model the financial impact of Peak Season Surcharges across multiple carriers within a single view inside my dashboard?

Data across multiple carriers is readily available in one central location. Before, businesses would jump from one carrier portal to another to calculate the impact of Peak Season Surcharges. That’s not the case with Optimum Parcel. As a reseller, you can quickly and accurately perform a side-by-side analysis between FedEx and UPS to show the financial impact of Peak Season Surcharges within a single view inside your account dashboard.

Is the agreement modeling rule managed entirely within the AHS surcharge rule or is a separate rule required?

UPS is well-known for not extending discounts to their Peak Season Surcharges. It’s important to note that Peak Season Surcharge discounts can be negotiated with new contract language or an addendum to the current UPS contract. For FedEx, the agreement modeling rule is managed entirely within the AHS surcharge rule.

How do reductions in AHS surcharges impact Peak Season Surcharge (PSS) related savings in this view?

The Peak Season Surcharge (PSS) rate for FedEx is lowered by the negotiated discount, similar to what’s applied to the base rate. If a 40% discount has been negotiated on the Additional Handling Surcharge, this discount can be applied to the Peak Season Surcharge attached to additional handling.

What’s the customer invoicing methodology for related savings?

Savings should always be itemized, not sent as a collective summary. Optimum Parcel reports savings by cost component for every single shipment. This is easily viewable through the online dashboard or in a PDF report. Reductions on the Additional Handling Surcharge do make the Peak Season Surcharge on the Additional Handling Surcharge a billable line item for any reseller customer using the carrier agreement optimization service.

Increase revenue with Optimum Parcel technology

The proprietary software developed by Optimum Parcel accesses and manipulates data at a level that is hard to duplicate. Swap your spreadsheets for the most sophisticated technology on the market and ensure your current customers are seeing a high return during the holidays.

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