Understanding Your Contract
Understand the ‘self-regulating‘ portion of your Small Parcel Carrier contracts, known as a ‘Portfolio Tier’ with UPS and an ‘Earned Discount’ with FedEx, which are typically based on a 52-week Rolling Average of your shipping spend. The 52 week period is designed to create a leavening effect so that short-term fluctuations in shipping volumes will not drastically impact a shipper’s discount.
To date, Carrier Response has not included any sweeping action regarding relief or adjustment to shippers who may experience a decrease in their package volumes.
We fully understand the angst this situation is causing and that Carrier Contract compliance makes up only a fraction of the many disruptions you are dealing with. To assist, LJM is proactively managing all of our clients’ Carrier Contracts for significant incentive tier adjustments. Upon analysis, if necessary, we will reach out to discuss conclusions and next steps.
Not yet an LJM client, but in need of some professional guidance? We are an excellent resource. Please feel free to reach out regarding your Parcel Carrier Agreements. We are here for you and happy to help.