Your Commonly Asked Parcel Shipping Questions Answered
We collected some of the most commonly asked parcel shipping questions and provided answers to help better inform your team.
How can I determine if I’m overpaying for my parcel carrier contracts?
It’s very difficult for you to assess overpayment on your own. Redwood provides a market analysis based on your product characteristics, service profile, current pricing, and comparable industry best pricing.
What steps should I take to evaluate the state of my parcel agreements?
Industry best practices to evaluate parcel agreements would be to collect all relevant contractual agreements and seek an industry professional like Redwood to provide a market analysis.
What is required to perform a parcel market analysis?
Redwood differentiates itself by creating easy and efficient access to market analysis. All that is required is access to parcel sites for your specific product characteristics, the service profile, and current pricing.
Does the parcel market analysis really work? Why?
Absolutely! Traditionally, you are negotiating in a vacuum with no insight into the market price and the parcel companies benefiting from no competition. The market analysis levels the playing field by allowing you to gain an agnostic view of your current small parcel program compared to your peers’ best-in-class pricing.
How does Redwood support me through the market analysis process?
Redwood does all of the heavy lifting. Typically, you have an analysis within 10 business days of providing Redwood the required access at no cost to you.
Will the parcel companies compete for my business?
Yes, both parcel companies are interested in growth and retention of your business. Unfortunately, in the typical model they are doing so without providing competitive market pricing. Leveraging Redwood’s insight and parcel program will ensure the parcel companies compete for your business with market best pricing.
Do I get to keep my direct relationships with my carrier(s) or do you get in-between that as a 3PL?
Parcel carriers contractually require direct relationships with their customers. Redwood’s model respects that expectation.
Do I process my parcel shipments differently? I.E., through your shipping system?
No. You process your shipments as you do now. Our analysis and consultative feedback for pricing is based on your billing data and characteristics. This allows for no process change for your organization.
How do you document savings after the negotiation process is complete?
Costs are baselined during the initial market analysis. Following a successful negotiation, shipments are compared to the baseline to identify the negotiated savings from the new agreement.
Can I outsource the complete process to Redwood so you can negotiate with the carriers directly?
The negotiation process has many facets. Redwood can accommodate all approaches based on your individual needs. We suggest the best approach is a client-facing interaction supported by Redwood’s analysis and insight for a long-term relationship with your parcel provider.
Why is Redwood able to achieve better results than my organization?
Redwood has the visibility to premier pricing in every segment of the market. That combined with our team of parcel industry experts and analytics delivers superior results.
Why is Redwood better than its competitors?
Redwood’s data-driven process along with experienced parcel industry experts leads to aggressive pricing results based on experience coupled with proper customer alignment. Additionally, unlike other providers in this space, Redwood is a complete logistics service provider. As a result, we can ensure a parcel solution is complimentary to your entire strategic supply chain for optimal results.