For the third consecutive year at the PARCEL Forum, Shipware,
LLC conducted a live parcel pricing and benchmarking survey
in which 77 shippers responded to survey questions about their
parcel usage, carrier preferences, pricing discounts, cost reduction
strategies and other valuable benchmarking data. Survey
respondents collectively commanded approximately $2.8 billion
in annual parcel spend.
We asked the questions, you provided responses. Contracts
were not shared, but rather, participating shippers responded
anonymously to survey questions based on ranges. Technology enabled
and totally blinded to avoid confidentiality concerns,
the survey was designed to help shippers better understand how
their pricing stacks up with other shippers. Moreover, all survey
responses were cross-tabulated by industry, company revenues,
primary carrier, and annual parcel volume/spend for more meaningful
Why is benchmarking parcel pricing data so critical? Well, the
most common challenge I hear from volume parcel shippers is
that they don’t know how good — or bad — are the incentives,
terms and structure of their carrier pricing agreements. While
no shipper would ever negotiate a contract and knowingly leave
money on the table, the reality is that some shippers have clearly
done a better job than others when it comes to negotiating the
most favorable rates and terms.
Published for the first time to non-survey participants, this article
provides survey results on general parcel procurement, discounts/
pricing benchmarks, DIM divisors and minimum charges,
and mode/carrier optimization.
Download the PDF to see the full results!
Editor's Note: We originally included the wrong numbers on the graph relating to the mitigation of DIM charges; that has since been corrected.