USE CASE

For a parcel delivery depot manager, negotiating with transport subcontractors is often a very difficult task:

• “Does the negotiated price allow my subcontractor to be profitable?”
• “Am I paying too much for this subcontractor’s transportation services?”
• “How can I be sure I’m buying my transportation at the right price?”
• “Is my depot’s territory sectorization really optimal?”

These are questions that depot managers may regularly ask themselves when negotiating contracts with their subcontractors.

It is not always easy for them to make the right decisions when they lack accurate and reliable data.

This case study will provide you with answers to the following questions:

• What costs impact the profitability of parcel delivery companies and their subcontractors?
• Subcontractor pricing: why does the reality not match the theory?
• How to maximize your negotiation margin?
• What are the benefits of Kardinal’s solution?