Can You Benefit From Contingency Courier Cost Savings?

As the recession continues in the world’s economies many are looking for opportunities to save on expenses without having to spend precious capital up front to achieve these savings. Although there may be other ways of accomplishing this goal, one sure way for most companies is to look into a contingency courier cost savings program.

First off, for these programs to make sense a company should be spending at least $500,000 a year on courier services which isn’t hard to do for most medium to large size firms.

The next step is to find a company to perform the contingency audit on your courier costs to determine what savings opportunities might be available to your firm.

And although there are a number of individuals and firms involved in the provision of this type of service, it is important to choose wisely.

Some of the questions you should ask and attributes to look for are as follows:

1) How large is the firm and how long have they been in this business?

Given current layoffs and economic circumstances there are a number of small shops/individuals starting up and do they have the scale/longevity to meet your needs on an ongoing basis?

2) Does the firm have specific courier industry experience, credibility and knowledge of courier costing and pricing models to get you the best deal possible?

There are any number of freight negotiators out there without the specific knowledge, information and skills required to provide your firm with the optimal outcome.

3) What kind of relationships does the firm have with the courier companies and is this with all firms or just one firm?

In order to maximize your potential savings without jepoardizing your service relationship with the providers requires a firm that has the credibility, respect and understanding of the courier providers.

4) Will the firm be involved in assisting/monitoring that you receive the savings identified for your firm?

Some firms complete the analysis, collect their fee and move on, you should look for a firm that provides an ongoing solution with audit and reporting to monitor/confirm that you get the calculated results

The bottom line is that if done properly incorporating the concepts and capabilities described above, more than 90% of companies can achieve significant savings.

Contingency courier cost savings programs are an excellent alternative to find savings even in mature supply chain operations and if you’d like a referral to a firm meeting the above criteria simply ASK.

Jeff Ashcroft

© Copyright 2009, All Rights Reserved,
Ashcroft Communications International Ltd.

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