Every year, businesses ship billions of parcels across the country and worldwide to deliver their products to happy customers. In 2018 alone, approximately 13 billion parcels were shipped. To ensure that customers stay happy and get their parcels on time, businesses rely on carriers and shipping contracts to transport their products. However, because carriers also need to make money, it’s not uncommon for shipping parcel contracts to try and take advantage.

To help you avoid wasting money on services that you don’t need to pay for, here are a couple of the most common contract errors that your parcel contract is actually hindering rather than helping your business and what you can do to stop it.

You’ve signed a GSR waiver

You want to carefully review before agreeing to sign GSR waivers when you’re signing a parcel contract. If you’ve signed GSR waivers in the past with your current carrier. This is a problem for several reasons. First, there’s a chance you’ve been paying for product returns that aren’t your responsibility. GSR waivers waive the right to late delivery refunds. That means your carrier isn’t responsible for getting your customers’ packages to them on time.

Seldom is your business is the one paying for a refund if your customer’s package gets lost in the shipping process even if the loss is the fault of your carrier. Another reason is, your customer satisfaction may be damaged.

You have discounts in areas you don’t use

There are 400-500 options carriers have available to their shipper knowing which options are best for you is a massive challenge. Your parcel contract may have great discounts in many of the areas, but those discounts are for areas that your business doesn’t use, then you’re not getting the savings you think you are. Many companies are offered these “Extended” discount to sign a GSR waiver. It’s essential to know what service levels, package characteristics, and zones you use. AFMS offers a new customer analysis of these areas you have waived GSR recovery.  We can tell you your loss costs.  You’ll know which areas will have the biggest impact on your parcel budget when you sign a new contract.

AFMS understands how overwhelming it can be to determine whether you’re getting the right services, discounts and terms when it comes to shipping. Our parcel pricing experts will help to make sure that you’re not being overcharged for shipping services. To learn more about our parcel contract negotiation services, contact AFMS today.

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