FAQ about Negotiations Services
How much money will my company save using PANCGroup's Pricing Negotiation Service?
PANCGroup’s clients have a 99% success rate with saving of 15% to 22% on average. According to a “Purchasing & Aberdene Group” study, companies can save an average of 8.8% on their overall freight budget with a more sophisticated procurement or auditing system.
How much money does it cost for our company to utilize your services?
There are no upfront fees or cost investment to use our services. Our compensation is based strictly on Gain Share and a contingency bases. We are only compensated for our work if we provide verifiable and quantifiable savings. The burden of risk, time invested, and upfront capitol is 100% ours, not yours.
How will I know what my actual cost savings will be based on your negotiations?
Part of the process is to re-rate every package based on each customer’s actual shipping activity. Next, we compare your current carrier rates (benchmark) to our newly negotiated pricing proposal. We verify and present a full analysis of all savings (old verses new) for each individual shipment. This method will ensure an accurate appraisal of the actual savings not just an average.
Why use PANCGroup to negotiate?
PANCGroup consultants come from the carrier ranks. We are former executives at the Vice President and Director levels. That gives us an insider’s view and knowledge base which until now was only available to the carriers. Years of carrier experience, coupled with spend analytics and data modeling, plus customer benchmarking, gives us a distinct advantage. We know exactly what you should be paying, which allows us to negotiate a new best in class contract from a position of strength.
Will the negotiations process take a great deal of time or interrupt our daily operations?
The process will take very little of your company’s time and none of your resources. The operation can simply continue with its daily routine. We will act as your in house staff but operate off site on your behalf. We gather the data and information already available to appraise your current agreement. Next, we define the exact savings available and create a formal RFQ. We appraise the carrier responses and determine your company’s savings by all carriers and you make a choice based on the analysis.
What if we recently signed a contract or price agreement with a parcel carrier?
Carrier price agreements are generally in place for a period of two or three years. They are Evergreen Agreements which means forever but with an annual rate increase each year. A great percentage of all agreements have tiers and incentives so carriers can manage revenues and margins. The fact is verbiage dictated by the carriers ensures rates increase at anytime and agreements can be terminated with 30 days notice. As a client, you have the same rights so why not use our knowledge to reduce your transportation spend today so you can manage your costs as well.
Does PANCGroup work as an affiliate or on behalf of UPS, FedEx, DHL or any other carriers?
No, we are an independent and unbiased third party. We work solely on behalf of shippers. We will and must remain in a completely neutral position as a third party negotiating your carrier contracts.
Will using the PANCGroup process change our current relationship with our carrier?
Like you, we strive to maintain a good working relationship with all carriers. We provide a neutral catalyst to help improve your company’s relationships through a formal unbiased bid process. Based on your preference, we can work either behind the scene or directly with the carriers after signing a third party non-disclosure agreement; the choice is yours.