When it comes to shipping, understanding your accessorial needs before negotiating rates can lead to significant savings and revenue opportunities.
Accessorial charges are fees for services other than basic delivery. Examples include equipment, fuel and special services. According to the data collected from Logistically TMS, the four most commonly used accessorials, excluding fuel, are:
- Delivery Liftgate
- Delivery Notification
- Delivery Appointment
- Inside Delivery
Roughly 15% of all shipments managed by Logistically TMS contain at least one accessorial besides fuel. Of those shipments, accessorial fees accounted for 17% of the total shipping cost. This is a significant portion of the overall freight charges and negotiating a custom rate for accessorials will assist in driving long-term savings.
Logistically TMS provides a robust Business Intelligence (BI) suite, complete with many useful reports, as well as a “self service” offering. The provided “Accessorial Breakdown” report is where users can see what accessorials are being used and how they're priced.
Capitalizing on Accessorial Negotiations
After successfully negotiating for better pricing on accessorials, a significant revenue opportunity arises. Logistically TMS offers many options for adding markup to a shipment, including accessorials. Whether a 3PL or a shipper, adding a little margin to discounted special services is a great way to offset the cost of a TMS, handling costs, or to simply add to the bottom line.