Nearly 90% of Companies Pay Too Much for Shipping

In 2006 Morgan Stanley and Parcel Magazine surveyed 250 shippers of UPS and FedEx packages. When compared to companies using a third-party consultant to negotiate small package agreements to companies that negotiated on their own, the study showed a 49% improvement in discounts for the companies using a third-party negotiator. When applied to an estimated shipping volume of $75 billion, these shippers were overpaying by a combined $12 billion each year. Yet only 11% of the survey respondents used outside consultants to negotiate rates.

2006 Morgan Stanley Survey Results

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Logistics & Expense Management

Most companies pay far too much for mail, parcel and freight services. Without a basis for comparison, it is nearly impossible to know if the contract you negotiated with a carrier provides your company with the most advantageous pricing structure.

SourceCorp’s expertise in logistics and expense management includes experience working with all of the major carriers, across all markets and types of service. Because we negotiate shipping contracts routinely, we are able to obtain substantial discounts that an individual company would not likely realize on its own.

Shipping reports are complex and difficult if not impossible to decipher. We evaluate a company’s potential for savings up front by conducting a free analysis of their shipping data and creating a customized, user-friendly report that is easy to understand and compare. Our clients understand exactly what they are being charged for and can even request a report broken down by specific division, type of service or line item.

Once a company’s contracts are negotiated and in place, we don’t just disappear. Instead, we review pricing every six months to ensure that the negotiated rates are still the most advantageous.

To find out how we might save you money on your small parcel shipping costs, request a call from our Logistics and Expense Management team by clicking here.