We will never use benchmarking. Although benchmarking can be an effective tool in helping companies improve many areas of their business, in regard to pricing and rates in the parcel world, it can be very misleading and actually harm the relationships you have with your carriers. The problem with benchmarking when evaluating a pricing agreement is that no two shippers are enough alike when it comes to cost to serve for a carrier that they can be compared. Pricing the carrier can offer will not be identical for different shippers and cannot be compared or "benchmarked". This will be true whether using the amount spent with the carrier, the number of packages shipped, or when using shippers from the same industry for comparison. A shipper comparing themselves to another will either feel they are not being treated well by the carrier(s), leading to contention, or they will leave dollars on the table.
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