TRANSPORTATION COST REDUCTION

Select the ideal carriers, negotiate best-in-class pricing and terms, and
hold carriers accountable for SLAs - hard to do. NPI's knowledge,
experience, models and on-demand bandwidth make it easier.

NPI works on carrier sourcing initiatives every day.

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The NPI team has deep subject matter expertise in small parcel, LTL, TL, air and ocean freight to deliver carrier sourcing services that help clients:

  • Refresh the carrier mix to optimize throughput, and improve rates and quality
  • Negotiate new contracts to optimize transportation cost reduction and flexibility
  • Audit carrier invoices for accuracy and compliance; and process fund recovery

 
Because we utilize the client’s shipping data to perform analysis and auditing, one additional benefit of our services is that clients have access to consolidated shipping cost information.
 

Carrier Selection

 

Whether clients are proactively seeking new carriers, or just want to periodically validate that their carrier mix is ideal for their evolving business requirements, NPI transportation cost reduction services include:

  • Assessment of current carrier mix, recommendations for alternates to consider
  • Assessment of current carrier performance (perceptions and realities)
  • Competitive bid solicitation and process management
  • Turnkey RFP creation and process management services

 

Contract Optimization

 

Transportation carrier contracts have always been particularly challenging for shippers. They are (deliberately) confusing. Pricing (and the basis for it) has never been transparent, so it’s impossible to verify on your own that you have fair and competitive rates – there is no Kelley Blue Book. And you only negotiate carrier contracts every few years, so it’s not something your sourcing team gets to practice much.
 
NPI negotiates carrier contracts every day. We have the general know-how to quickly determine whether your contract is competitive. More importantly, we have powerful cost-to-serve models that enable us to develop fact-based business cases to drive savings.
 
This isn’t a benchmarking exercise. Every client’s shipping profile is unique. In fact, it’s that uniqueness which is the foundation for the target pricing and terms we recommend, grounded in our knowledge of the carrier’s cost to serve you as a unique shipper. Working side-by-side with your team, NPI transportation costing consultants stay with you all the way through completion of a new contract; helping you achieve:

  • Best-in-class shipping rates and terms
  • Maximum flexibility to react to business change with minimum penalty
  • Well-crafted service level agreements (SLA’s) that assure the carriers are accountable for quality that is important to your specific business needs

 

Carrier Invoice Audit

 

There are a surprising number of errors in carrier invoices (another by-product of contract complexity), but most organizations don’t have the staff bandwidth to find them. NPI provides that bandwidth, identifying errors and working directly with the carriers’ customer service reps to get them corrected and to recover overpayments for you. We can also review your carrier invoices to file for Guaranteed Service Refunds for deliveries that did not meet contracted service level commitments.
 

Consolidated Data at Your Fingertips

One of the deliverables of NPI’s services is consolidated visibility into transportation data via monthly and quarterly reports, and our online client portal. Most clients find this information to be valuable for budgeting, forecasting, management reporting and business analytics.
 

 

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