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Leveraging Technology to Optimize Parcel Shipping Costs

Leveraging Technology to Optimize Parcel Shipping Costs

Matthew Telesca
President and CEO
MGN Logistics, Inc

Parcel shipping and carrier agreements have become very complex. With pages and pages of varying rates, discounts, surcharges and multiple zones, understanding these agreements can be nearly impossible for most shippers.  Even the most sophisticated corporate shippers require specialized software to analyze these agreements and make sense of them. This is where MGN Logistics can help. MGN Logistics is a leading provider of IT solutions for the freight management and transportation industry. TheirTransportation Management Software or TMS platform has been the backbone of some of the country’s largest 3PLs for many years. Now, this innovative technology is being made available to individual private companiesto assist in improving operational efficiencies.Imagine having on-demand technology that can definitively illustrate the potential impacts to changes in your UPS or FedEx carrier pricing agreements.  Data driven technology that you can leverage, to level the playing field for effective carrier negotiations that produces results! 

We call it “RAMS”

RAMS (Rating Agreement Management System) is aproprietary technology that provides on-demand parcel rate comparisons based on your actual shipment history.  It allows re-rating across carrier agreements, pricing proposals, and year to year carrier base rate changes. RAMS eliminates the guess work and allows informed decision making.  This technology was only available to the largest corporate entities, but it is now available to shippers of all sizes.

How does RAMS benefit shippers

During a bid or agreement restructuring, your newly proposed carrier agreement data is uploaded to the RAMS system, thereby determining how the proposed changes willimpact your parcel spend.  The RAMS system providesthe ability to re-rate every individual historical shipment during a given time frame. Therefore, giving complete and accuratevisibility of the impact ofproposed service options, assessorial fees, fuel surcharges, and even DIM rated shipments. Unlike the carriers or any of MGN’scompetitors, they do not use averages to determine your projected bottom-lineresults, rather, they use actual shipment data detailing costs to the penny.

This sophisticated technology benefits shippers by providing actionable intelligence.  For example, prior to signing any carrier agreement, the clientknowsexactly what the impact of the proposed pricing changes will be, and how it will affect theirbottom line.   Once the new agreement is published, MGNcan then provide a weekly, monthly or quarterly savings report. This report illustrates savings achieved by service levels andsurcharges, throughout the lifetime of the agreement. 

Additionally, the RAMS system provides an annual General Rate Increase (GRI) Impact Analysis. Each year, the carriers announce changes to their base rates, minimum charges and surcharges or assessorial fees. Carriers typically state this general rate increase as a flat percentage;however, this is really an “average” of all increases across all weights and services. Depending on your company’s unique shipping profile, yourtrue increase could be significantlyhigher than that “average”.  Understanding exactly how a carrier rate increase effects your business is powerful information. Having on-demand access to our proprietary technology is exactly the LEVERAGE your business needs to effectively navigate carrier negotiations and optimize your rates. 

Take the next step and visit us at www.mgnlogistics.com to learn more. 


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