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LTL/TL FAQs

Q: Why don’t I already have the most competitive rates in the market today?

A: The carriers are trying to maximize their profit margins. Therefore, their account executives compensation is dependent upon the revenue paid into the company by their customers- their pay depends on every dollar that you spend. The bigger your discounts, the lesser their paychecks. Therefore, it is in the best interest of the account executive and carrier to hold back all, or as much discount as possible, yet still manage to retain your business.

Q: I have a traffic/logistics coordinator, why do I need a consultant?

A: Even the most experienced logistics manager typically only sees 10-20 transportation agreements in their career. Associates at ISS have a knowledge network of thousands of agreements and a team with years of experience negotiating these agreements. Associates at ISS have spent years on the other side of the negotiation, writing and executing contracts on behalf of the very carriers with whom you are attempting to negotiate. Without this experience it is nearly impossible to obtain the most competitive rates in the market today. If your company doesn’t have the most competitive rates, it’s not your company’s fault; it simply does not have the frame of reference of a former carrier employee.

Q: How can you get me better rates than I can negotiate for myself?

A: Associates at ISS have a frame of reference for what a good rate actually is because we have been employed by the shipping companies to negotiate these agreements on their behalf. This experience provides us with the knowledge of how carrier pricing models work, what discount levels are yielded by specific volume/revenue thresholds, and how to get these discounts out of the carriers.

Q: Will my relationship with my carrier change or be negatively impacted?

A: No. ISS uses a collaborative approach with the carriers. Involving ISS typically improves the carrier relationship because we better educate the carriers on your needs, and you on the capabilities of your carriers. Moreover, the carriers benefit through high-level contact and visibility within your company, and occasionally by gaining additional business. Therefore, if there are any changes in the relationship, they will be positive.

Q: I am extremely busy, how much effort will this require on my end?

A: This is exactly why you need to contract ISS to handle this portion of your business, and one of the biggest benefits of our service. The only responsibility of a potential ISS client lies in the initial data submission. After that, ISS takes it from there. We analyze the data, generate a comprehensive RFP, conduct negotiations with carriers, and implement new carrier agreements, leaving you to focus on your daily responsibilities and tasks.

Q: How will this affect my life or job?

Logistics Coordinator/Shipping Manager – MAKE YOUR LIFE EASIER! Outsourcing carrier contract negotiations to ISS allows you to focus on the actual operation of your department. We take away the tedious meetings and countless rounds of time-consuming negotiations with your carrier representative. Not only do we allow you to devote more time to your core responsibilities, but we can also make objective process improvement suggestions that can improve the overall efficiency of your operation.

CFO or Controller – MAKE YOUR LIFE EASIER! By outsourcing carrier contract negotiations to ISS, it allows you to focus on your other vendor relationships and job responsibilities. By contracting ISS you can be absolutely certain that your carrier agreements are optimized and competitive. ISS can also provide you with easy ways to reconcile your bill, and reports that will give you a more comprehensive look at your freight expenses.

CEO – PUT MONEY BACK INTO THE BOTTOMLINE! It’s likely your company doesn’t have the most competitive rates. Even the most experienced logistics manager has probably only seen 10-20 transportation agreements in their career. Associates at ISS have a knowledge network of thousands of agreements and a team with years of experience negotiating these agreements from both sides of the table. Without this experience it is nearly impossible to obtain to most competitive rates in the market today. Aligning yourself with ISS allows you the opportunity to negotiate the best rates possible.

Q: How long will this process take?

A: Once you submit your data to ISS, we can have an analysis prepared and a proposal back to you within a week. The strategic sourcing typically takes 12 – 16 weeks. ISS allows one week after bids are collected from the carriers to review/analyze and present to your company. This allows for implementation to take place 14 - 18 weeks after you submit your data to ISS. YOU COULD BE SAVING THOUSANDS IN AS LITTLE AS 14 WEEKS!!

Q: How does ISS get paid?

A: There are NO UPFRONT FEES: ISS reviews your situation and conducts all of the initial analysis for FREE. Even if you contract ISS’s services, ISS will not get paid until after you begin realizing your additional savings. You then pay ISS only a fraction of the additional savings as you save. This means that ISS will have a positive impact on both your cash flow and net margins from day 1. ISS’s “Gain-Share” billing model makes contracting ISS’s services a RISK-FREE decision.

Q: What’s the catch?

A: No catch. ISS’s service is a WIN-WIN: ISS’s clients win by obtaining the most competitive rates in the market today, and ISS wins from being paid a fraction of the ADDITIONAL savings that they realize. The carriers typically win as well, as they typically gain additional business as ISS uncovers unidentified needs. The carrier also benefits from a better more extensive working relationship with the client.

Q: Before we sign with ISS, what keeps us from going to the carrier to generate some additional savings on our own?

A: While you may be able to negotiate some additional savings, these savings will be minimal and you will sacrifice the opportunity to maximize your company’s incentives. The reason for this is that the carrier must save face. Your carrier cannot directly offer you the maximum discounts you deserve without looking like they were previously trying to low ball you. ISS uses our frame of reference and expertise to request a targeted rate response from the carriers. Not only does this method maximize savings, but it also allows the carriers to offer their best pricing upfront and without losing any face.

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