Key Takeaways Parcel is one of the few spend categories where the seller, not the buyer, holds most of the data. UPS and FedEx know your shipping profile better than most procurement teams do. A strong parcel sourcing process is initiated with your own shipment data, not a carrier’s proposal. The headline discount hardly reflects what you’ll actually be paying. Minimum charges, DIM weight rules, and surcharges decide the real number. Parcel contracts need ongoing monitoring a

When high-volume shippers sit down to negotiate contracts with UPS or FedEx, they usually start at a distinct disadvantage. The carriers use advanced software, complex math, and decades of pricing strategies to protect their profits. On the other side of the table, most companies come equipped with only basic spending totals and standard carrier price lists. The result is easy to predict: Carriers routinely announce a yearly rate hike of around 5.9%. But once you add in extra