Every business wants to reduce cost, but how do you do it without impacting quality or service? Freight transportation costs are one of the largest expenses for many companies, yet for even the largest Fortune 500 companies with large freight departments, there is significant opportunity to reduce cost and increase efficiency
The Traditional Bid Process Doesn’t Work
The way companies typically tackle lowering freight costs is through competing bids. The problem with the bidding process is that it always delivers only marginal cost savings.
This is inevitable because a profit motive is present. Whenever a markup is added to the freight, you are never going to see the true cost of shipping your goods. Costs are reduced slightly, but the real root costs are not shared, and you never realize maximum, long-term cost savings.
This is equally true with traditional logistics firms, where typically a markup still exists, even when their model is positioned as “pay-for-performance.”
We Flip the Process 180 Degrees.
Instead of just simply getting bids on your freight, we partner with you as a consultant. We develop a business plan and budget using our team of logistics professionals. Priority has saved millions for clients since 2001.
Our freight analysis team determines a price and works with you and suppliers. The result is a business plan free of hidden charges and bogus discount rates. You continue your core supply chain process, often with the same suppliers. But now, your playbook includes dramatically lower costs and increased efficiencies.
Weekly Reports Show Ongoing Savings
We analyze your shipping costs on a weekly basis and present detailed reports of your savings at every step in the supply chain. We generate weekly audits that assure suppliers are using the correct rates and acessorial charges on your invoices. You then pay the carriers knowing everything is correct.
Compensation Based Solely On Performance
As compensation, priority receives a portion of the savings generated from your current baseline rates. Our analysis and negotiating services are free. We only benefit by saving you as much money as possible, while delivering better and more efficient services. Isn’t that the way it should work? Compensation based on performance only?
The First Step: The Freight Review
To determine how much you may be able to save, we conduct a Freight Review. This process usually takes 3-5 days and will outline recommendations and strategies for reducing freight costs. We review the recommendations in person or via phone, which usually takes 30 minutes to one hour.
