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Contract Management

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What is Contract Management?

Parcel carrier contract management is first and foremost a coordinated effort to ensure that commitments and prices outlined in your parcel carrier contracts are truly being upheld. However, carrier contract management can also be a rewarding cost mitigation effort to level set and align your contracts with the goals and objectives of your business and parcel strategy.

What are the Benefits of Contract Management?

Managing your parcel carrier contracts can be a critical process for:

  • Creating accounting ability for all parties involved to the commitments outlined in your carrier contracts (e.g. are you receiving the service you were guaranteed, and are you honoring your own commitments as a shipper?)
  • Ensuring your parcel carrier contracts align with the needs of your parcel network and the wants of your consumers, often resulting in cost mitigation and resource/partnership optimization.
  • Opening the discussion for contract adjustments or future iterations that allow for adaption of new parcel trends (such as 7-Day or Weekend Delivery).

In short, carrier contract management is part of being a good steward of your brand. Though it’s important to remember that contract management is often a two-way street – holding your carrier partners accountable for missteps means understanding and owning up to any missteps or lack of effort made on your part as well.

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