In the wake of 4-5% rate increases announced by UPS and FedEx earlier this year and new peak season rate hikes coming, it can seem like any business with a dependency on air and ground shipping is helpless against this powerful duopoly. You’re not helpless and you probably have more leverage than you think. You just need to know where to find it. MCG was formed over 25 years ago to educate companies on the complexities of shipping contracts and pricing and help them gain an upper hand during negotiations.
Let’s face it, there is nothing easy about interpreting complex UPS and FedEx contracts and pricing. With the right market intelligence and expertise working alongside you, MCG will put you in a position of strength at the negotiating table to vastly improve your contracts and pricing and maximize savings and profitability for your company – EBITDA, cash flow, and operating margins.
There are no upfront fees to leverage MCG. In fact, MCG will work alongside you until well after new pricing has been implemented before being compensated. Some talk the talk but don’t walk the walk. MCG goes the whole mile with you to identify, advise, negotiate, and implement. Each month you’ll receive detailed savings reports to quantify where the savings occurred on prior months shipments plus other business intelligence reports and insight.
All MCG needs to begin are:
- Fully Executed Good Faith Contingency Agreement
- Parcel and Freight Pricing Agreements
- Shipment Detail Reports
From these documents, MCG will gain a clear understanding of your shipping patterns and service level requirements…what you ship, how you ship, how much you ship, which zones you ship in, and many other crucial factors. MCG then runs a cost modeling analysis to benchmark your contracts and rate structures and presents results. Takes anywhere from 3-10 business days depending on scope.
Double digit savings is typical – 15-25% on average.
It is normal for our analysis to uncover surprising new information. You might think you’ve negotiated an incredible carrier contract. We hear this almost 100% of the time. MCG does what others can’t. It is rare for MCG to not find a healthy double digit savings opportunity.
Take the leap of faith. It’s worth the look. The worst that could happen is MCG validates your pricing is best in market which is rare. You’ll only get ahead with MCG. You’ll never pay more – only less.
If you’d like to benchmark your current parcel and freight contracts and pricing, contact Phil Murphy, Sr. VP Sales & Marketing for a no cost, no risk assessment. Phil Murphy – phil@mcglogistics.com // 949-525-7677
If you have interest in other cost avoidance and recovery solutions such as TMS, Invoice Audit and Recovery, Late Package Recovery, RFP Bid Management, E-Sourcing, or Managed Services, please also reach out.
