When Parcel Strategy Backfires: What Carriers Actually Want from Your Volume
Glenn Gooding and Chad Warzecha break down the 3 pillars of a sustainable parcel strategy and how brands can stop sending the wrong signals to carriers.
Many brands approach their carrier relationships like they’re buying a commodity, chasing lower rates and splitting volume across as many options as possible. But that model is no longer aligned with how carriers operate today.
In Episode 22 of Parcel Perspectives, iDrive Logistics President Glenn Gooding introduces three pillars that shape stronger, more resilient parcel programs: value creation, credibility, and trust. Chad Warzecha, President of NXTPoint Logistics, adds strategic depth to each pillar, explaining how brands unintentionally undermine leverage and what it looks like to shift toward more sustainable carrier partnerships.
Value Creation: It’s Not About Volume Alone
Carriers are increasingly selective. What they want is not just more packages but the right kind of volume that fits their network. That means efficient zones, well-packaged freight, clean data, and operational consistency.
Chad emphasizes that brands need to start with their package-level detail (PLD): What are your avoidable costs? Are you triggering redelivery or oversized surcharges? Are you routing packages dynamically to control expense and service quality?
Additionally, brands that over-diversify — often in an attempt to gain leverage — can actually send the wrong signal. Carriers may respond by tightening contract terms or deprioritizing your volume. If you’re not aligning with their network needs, you’re not offering value and that limits how much they’re willing to give back.
Credibility: How You Show Up Matters
Credibility begins before the first rate proposal. It’s in how you prepare for negotiations: who’s authorized to speak, how confident you are in your data, and whether you’re willing to go through multiple rounds to reach a deal that works for both sides.
Chad compares it to buying a car: walk in unprepared, and the dealer won’t take you seriously. The same goes for parcel carriers. If your posture signals short-term opportunism, they’ll hold back.
On the other hand, when a brand comes to the table with clarity and control, it builds the basis for better terms and long-term flexibility.
Credibility also comes from internal alignment. As Chad shares, when he negotiates on behalf of clients, he’s empowered to make decisions. That clarity, without red tape and reversals, gives the carrier confidence that they’re working with a serious partner.
Trust: The Long-Term Advantage
Trust is built through consistency. It’s the result of delivering on what you say — volume, growth, and partnership — and avoiding the common missteps that erode goodwill: mid-contract shifts, playing carriers against each other, or overpromising to win short-term perks.
Carriers take notice of your signals. Brands that stay committed even during tough pricing cycles often find themselves better protected when conditions shift. Those who constantly churn carriers based on rates may struggle to get responsiveness when it matters most.
When trust is in place, carriers are more likely to invest in you and support you with better terms, stronger service levels, and strategic collaboration. Glenn notes in the chat that those benefits often start with a single choice to move away from transactional behavior and build something long-term.
Final Thoughts: Build Carrier Relationships on Value, Credibility, and Trust
When brands prioritize trust and not just rates, they’re not only securing better terms today, they’re laying the groundwork for stronger carrier relationships down the road. That shift starts with knowing what kind of signal your strategy sends and being intentional about every step.
Want to build a parcel strategy that delivers real value for you and your carriers? Contact iDrive Logistics to start a smarter conversation.
Related articles
-
Enhancing Customer Loyalty Through Exceptional Shipping Experiences
Read moreHow Shipping Insurance Can Help SMBs Compete in the Age of E-commerce
-
Navigating the Complex Waters of Parcel Sourcing Strategies
Read moreInsights from Episode 8 of "Parcel Perspectives"
-
Navigating the Peaks and Valleys of Reverse Logistics for Holiday eCommerce
Read moreReturns are ian opportunity for businesses to optimize operations, build brand loyalty, and embrace sustainability in a meaningful way.