Parcel distribution advisory
Meaningful, sustainable cost reductions in parcel distribution.
We add a new layer of capability and depth to seasoned negotiating teams that manage very large and complex parcel distribution networks.
By way of introduction
A partner for global parcel networks.
7th Man Analytics helps its clients drive meaningful, sustainable cost reductions in the area of parcel distribution. Our clients represent a broad spectrum of industry, and typically spend anywhere from $1M to $50M per year with the integrated carriers, UPS and FedEx.
Our typical client conducts business globally and needs a partner that can analyze and dissect data related to multiple flows of global commerce. Whether you use parcel networks to manage the exchange of samples coming out of your European design center, or as your primary portal for finished goods coming out of Asia, 7th Man Analytics can help you operate a leaner, more efficient global parcel network.
Questions worth asking
- Are you challenged with ever-increasing distribution costs?
- Is your parcel distribution network an inhibiting cost center, or a source of competitive advantage?
- Are you operating at a more favorable cost position than your fiercest competitor?
- Are you best positioned to grab new share in the exploding direct-to-consumer market?
- Is your omni-channel strategy driving velocity in your business? Will it deliver performance that meets and exceeds the expectations of your customers?
The challenge
Parcel costs are rising at an alarming rate.
Even the most thoughtful business analysts are finding it increasingly difficult to forecast costs accurately. Despite carrier assertions that "rates will increase by X, which will be offset by reductions in Y", costs continue to spiral out of control. Carriers mask true transaction costs through a litany of additional charges and surcharges that significantly inflate total cost.
It's extremely difficult to correctly assign parcel shipping costs on the front end of your processes given the gauntlet of charges that may be tacked on to each transaction. More often than not, carrier pricing subtleties create a shortfall between what you charge your customers for shipping and what you actually pay.
Moving variables such as fuel, demand fees and GRIs negatively impact your ability to budget effectively and deliver the appropriate ROI to your stakeholders. At year end, you find yourself over budget on parcel expenditures and planning a "cushion" in next year's plan.
A carrier negotiation is more like a carnival shell game; when they give in one area, they take away in another.
You look for transparency in your carrier contracts but you don't find it. Carriers understand their rating methodologies very well, and seek to keep the implications of those policies unclear and understated. Your carrier positions a small savings through minor adjustments to your discount; the tier adjustments and annual rate increases assure you'll never see the promised savings.
You receive minor, incremental adjustments when you grow, but severe penalties should your business decline. You can deal with these parlor tricks, but only when you catch them. With different rates and surcharges, understanding the true costs and advantages of one carrier versus the other can be a daunting task.
Client results
Our clients span public and private companies, private equity portfolios, and globally recognized brands.
It's time to elevate your game.
Consider the benefits of an exploratory discussion with Jerry Burke. Tell us about your parcel network and we'll follow up promptly.
- Phone
- 339-526-1666
- Address
- 25 Thurmond Way, Unit 1647
Bluffton, SC 29910