Your shipping contract with carriers like UPS and FedEx is one of the most significant expenses on your balance sheet, yet it often goes unexamined. It’s easy to assume the rates you have are competitive, but carrier agreements are complex documents filled with hidden fees and surcharges designed to protect their bottom line, not yours. The base discount you see is just the beginning. True savings are found in the details—the accessorial fees, minimum charges, and service terms that can quietly inflate your costs. This is where parcel contract optimization becomes essential. It’s a strategic analysis of your entire agreement to ensure every term is tailored to your unique shipping profile, turning a major cost center into a source of significant savings.
Key Takeaways
- Master your shipping profile first: Before any negotiation, analyze at least a year of your shipping data to understand your volume, service mix, and costs. This evidence-based approach is your foundation for securing better terms.
- Target surcharges for the biggest savings: A low base rate means little if hidden fees are inflating your invoices. Focus your negotiation on reducing or eliminating the accessorial fees that impact your business most, as this is where the most significant savings are found.
- Treat your contract as a living document: Don’t sign an agreement and forget about it. Implement a schedule for regular reviews and continuous invoice audits to ensure carrier compliance, catch costly errors, and adapt to your changing business needs.
What Does Parcel Contract Optimization Really Mean?
Think of parcel contract optimization as a strategic deep-dive into your shipping agreements. It’s the process of thoroughly analyzing your contracts with carriers like UPS and FedEx to get better rates, terms, and overall value. This goes way beyond just asking for a bigger discount on your base rates. It’s about making sure every line of your agreement is tailored to how your business actually ships. A truly optimized contract reflects your unique shipping profile—from package sizes and weights to delivery zones and seasonal volume shifts.
The goal is to align your carrier agreement with your operational needs, eliminating unnecessary costs and improving efficiency. By digging into the details, you can uncover hidden fees, negotiate more favorable terms on surcharges, and secure service commitments that protect your business. Effective contract optimization turns your shipping agreement from a standard document into a powerful tool that supports your company’s growth and profitability. It’s a proactive approach that ensures you’re not leaving money on the table or paying for services you don’t need.
The Optimization Process, Explained
The optimization process starts with a comprehensive review of your current shipping data and carrier contracts. This isn’t a quick glance; it’s about understanding your shipping habits inside and out. You’ll analyze everything from your typical package characteristics to your most frequent destinations. Armed with this information, you can identify where your current agreement falls short and where you have leverage to negotiate. The next step is using this data-driven insight to build a case for better terms. This isn’t a one-and-done deal, either. Smart shippers treat contract management as an ongoing cycle, reviewing their agreements at least once a year to adapt to changing business needs and carrier pricing updates.
Key Parts of a Parcel Contract
A parcel contract is much more than a simple rate sheet. The most impactful components are often found in the fine print. Key elements include your negotiated base discounts, minimum charges, and a long list of potential surcharges and accessorial fees for things like fuel, residential delivery, or oversized packages. Your contract also outlines specific service level agreements (SLAs) and performance metrics that hold the carrier accountable. Understanding each of these parts is critical. A fantastic base discount can easily be erased by hefty surcharges if your shipping profile triggers them often, which is why a holistic view of your contract is essential for true cost reduction.
Why Bother with Parcel Contract Optimization?
You might think your current shipping contract is “good enough,” but that mindset could be costing you a significant amount of money every year. Carrier agreements are complex documents designed to protect the carrier’s bottom line, not yours. They are filled with dense language, hidden fees, and surcharges that can quickly eat into your profits. Taking the time to analyze and renegotiate these agreements isn’t just a box to check; it’s a strategic move that directly impacts your financial health and operational success.
Effective parcel contract optimization goes beyond simply asking for a lower base rate. It involves a deep dive into your unique shipping profile to secure terms that truly work for your business. By doing this, you can uncover major cost-saving opportunities, create more efficient shipping workflows, and build a stronger, more transparent partnership with your carriers. It’s about transforming your contract from a standard liability into a competitive advantage.
Find Opportunities to Reduce Costs
The most compelling reason to optimize your parcel contract is the potential for substantial savings. Most standard carrier agreements have built-in profit margins that leave plenty of room for negotiation. Without a thorough analysis, you’re likely overpaying. Companies that go through the optimization process often see a significant reduction in their annual shipping spend—sometimes as much as 20% or more. These savings come from negotiating better discounts on base rates, minimum charges, and common surcharges that apply to your specific shipping patterns. Think of it this way: every dollar saved on shipping is a dollar that goes straight back to your bottom line, freeing up capital for growth, innovation, or other critical business needs.
Ship More Efficiently
A well-optimized contract does more than just save you money; it makes your entire shipping operation run more smoothly. When your contract terms are tailored to how you actually ship—your typical package weights, dimensions, and delivery zones—you create a more predictable and efficient process. Instead of trying to fit your shipping strategy into a generic contract, you build a contract around your strategy. This alignment reduces friction and eliminates the guesswork. By leveraging your shipping data and market intelligence, you can secure discounts and terms that reward your shipping behavior, making every parcel you send out more cost-effective and streamlined from the start.
Secure Better Service Terms and Protections
The fine print in your carrier contract matters just as much as the rates. A strong contract includes clear language about service guarantees, liability, and performance expectations. This is your safety net. It protects you from unexpected cost increases and ensures you have recourse if service levels falter. For example, negotiating protective language can prevent carriers from unilaterally changing terms or adding new surcharges mid-contract. It also establishes clear communication protocols, turning your relationship with your carrier into a true partnership. By focusing on these details, you gain better control over your shipping budget and protect your business from costly surprises down the road.
What to Analyze Before You Negotiate
Before you even think about picking up the phone to talk to a carrier, you need to do your homework. Walking into a negotiation without a deep understanding of your own shipping data is like going into a final exam without studying—you’re not going to get the results you want. Your shipping profile is your single greatest asset in these conversations. It tells the story of your business, your needs, and the value you bring to a carrier. By digging into the details, you can pinpoint exactly where you’re overspending and identify your biggest opportunities for savings.
Think of it this way: carriers know their business inside and out. To level the playing field, you need to know yours just as well. This means gathering specific, concrete data that backs up every request you make. When you can show a carrier exactly how much volume you ship, where it goes, and what it costs you, you move from making hopeful requests to data-driven demands. This preparation is what separates a standard, off-the-shelf contract from a truly optimized agreement that saves you serious money. The right reporting and KPIs are your foundation for a successful negotiation.
Your Shipping Volume and Patterns
First things first, you need a crystal-clear picture of your shipping volume. This isn’t just about a single number; it’s about understanding the rhythm of your business. Know exactly how many packages you send each month and how that fluctuates with the seasons. Track which shipping services you use most often, like ground, 2-day, or overnight. You should also have a firm grasp on your average package weights, dimensions, and shipping costs. This data shows a carrier that you’re a consistent and predictable partner, which is exactly what they’re looking for. The more predictable your volume, the more willing they are to offer competitive rates.
Common Package Weights, Sizes, and Zones
The physical characteristics of your packages and their destinations have a massive impact on your final bill. This is where details like dimensional (DIM) weight and shipping zones come into play. This information gives you real power when talking to carriers. By analyzing your historical shipping data, you can find clear ways to save money. For example, you might discover that a slight change in box size could save you thousands in DIM weight charges. Understanding which zones you ship to most frequently can also help you negotiate better rates for those specific lanes or explore a carrier diversification strategy with regional carriers.
Your Current Spend and Hidden Fees
It’s essential to know your total shipping spend, but you need to go deeper. You have to understand where every single dollar is going, especially the ones hiding in the fine print. Unexpected fees, carrier mistakes, and avoidable costs can quietly inflate your invoices. It’s time to get familiar with things like chargebacks, dimensional adjustments, and residential surcharges, because these accessorial fees often make up a significant portion of your total spend. A thorough invoice audit can uncover these hidden costs and give you specific, actionable items to bring to the negotiating table. You can’t negotiate a fee if you don’t know you’re paying it.
How Peak Season Affects Your Volume
Peak season can make or break your shipping budget. Carriers are under immense pressure during these busy months, and they often implement demand-based surcharges and volume caps to manage the surge. Given that package volumes are expected to continue rising each year, you can’t afford to ignore this. Instead of seeing peak season as a problem, view it as a negotiating opportunity. By providing carriers with accurate forecasts of your peak season volume, you help them plan their capacity. In return, you can negotiate more favorable peak surcharges or even get exemptions from volume caps, which is crucial for maintaining service levels and controlling your high-volume shipping costs.
Strategies to Maximize Your Savings
Once you’ve done your homework and analyzed your shipping profile, it’s time to put that knowledge to work. Securing the best possible parcel contract isn’t about luck; it’s about employing smart, data-driven strategies that put you in the driver’s seat. The goal is to move beyond simply accepting the carrier’s standard agreement and instead craft a deal that truly reflects the value of your business. This means looking at the entire picture—not just the base rates, but all the surcharges, fees, and service terms that impact your bottom line.
A successful negotiation is a partnership. You want a contract that benefits your company with lower costs and better terms, while the carrier wants to secure your volume. By approaching the conversation with clear data and specific requests, you can achieve both. The following strategies are fundamental to any effective negotiation. They will help you leverage your shipping data, tackle hidden costs, protect your budget from surprises, and create a competitive environment that encourages carriers to offer their best possible terms. Let’s walk through how you can apply these tactics to maximize your savings.
Use Your Shipping Data to Get Better Rates
Your shipping data is your single most powerful negotiation tool. Before you even think about talking to a carrier, you need to have a complete understanding of your own shipping patterns. This information tells a story about your volume, service mix, package characteristics, and delivery zones. When you can present a detailed analysis of your shipping profile, you’re not just asking for a discount—you’re demonstrating exactly why you deserve one. This data provides the concrete evidence needed to justify better rates and terms.
Carriers use this same data to determine their profitability on your account. By analyzing it first, you can anticipate their moves and build a stronger case. A thorough review of your reporting and KPIs can reveal opportunities to consolidate shipments, shift service levels, or identify areas where you’re overspending.
Negotiate Surcharges and Accessorial Fees
Focusing only on base transportation rates is a classic mistake. The real damage to your shipping budget often comes from the dozens of surcharges and accessorial fees that carriers add to your invoices. Things like fuel surcharges, residential delivery fees, dimensional weight charges, and peak season surcharges can inflate your final costs by 25% or more. The good news is that nearly all of these fees are negotiable, especially for high-volume shippers.
Come to the table with a list of the top five or ten surcharges that impact your business most. Ask for reductions, caps, or even complete waivers on certain fees. A successful contract optimization strategy addresses these fees head-on, turning a seemingly good deal into a great one. Even a small reduction on a recurring surcharge can lead to substantial savings over the life of the contract.
Lock In Favorable Payment Terms and Guarantees
A strong contract goes beyond rates and fees. It also includes favorable terms that protect your business and improve your cash flow. For example, you can negotiate for longer payment cycles, giving you more flexibility. It’s also critical to secure service guarantees. If a carrier fails to deliver a package on time, you should be entitled to a full refund. Ensuring these guarantees are clearly defined in your contract is essential for holding carriers accountable.
You should also push for language that protects you from unexpected price hikes and hidden costs. This includes securing a firm cap on the carrier’s general rate increase (GRI) and clarifying the terms for any service level changes. An effective invoice audit and recovery program can help you enforce these guarantees and ensure you’re only paying for the services you actually receive.
Create a Competitive Bidding Process
The most effective way to ensure you’re getting the best possible deal is to make carriers compete for your business. Relying on a single carrier leaves you with very little leverage. By introducing competition, you shift the power dynamic in your favor. This doesn’t necessarily mean you have to switch carriers, but it does mean you should be actively exploring your options.
Start by identifying other carriers that can meet your service needs. You can then initiate a formal Request for Proposal (RFP) process, inviting multiple carriers to bid on your business. This forces them to put their best offers forward from the start. A smart carrier diversification strategy not only helps you secure lower rates but also reduces your risk by ensuring you have backup options during peak season or service disruptions.
How Technology Gives You a Negotiating Edge
Walking into a negotiation armed with comprehensive data is like showing up to an open-book test. Technology gives you that advantage. Instead of relying on guesswork or the carrier’s own reports, you can use specialized software to analyze your shipping profile, model potential outcomes, and hold carriers accountable. This data-driven approach shifts the power dynamic, allowing you to lead the conversation with facts and secure a contract that truly reflects your needs.
Using Data Analytics for Shipping Intelligence
Your shipping history is a goldmine of information, but only if you can make sense of it. This is where data analytics comes in. Modern platforms put your parcel data to work, uncovering unexpected fees, carrier mistakes, and avoidable costs that inflate your spend. These tools dig into the details, showing you exactly how much things like dimensional weight adjustments, audit fees, and other surcharges are costing you. With this information, you can stop paying for carrier errors and build a strong, evidence-based case for better terms. This level of spend management transforms complex invoice data into clear, actionable insights for your negotiation strategy.
Modeling Different Scenarios
Imagine knowing the financial impact of a proposed contract change before you agree to it. Modeling tools give you a dynamic sandbox where you can run complex ‘what-if’ scenarios with precision and clarity. You can simulate how different rate structures, surcharge discounts, or service level changes would affect your bottom line. For example, you can model the difference between a higher base rate discount and the complete waiver of a common accessorial fee. This allows you to see which terms offer the most value and helps you prioritize your asks during the negotiation. This strategic foresight is a core part of effective contract optimization.
Automating Contract Monitoring and Tracking
A great contract is only valuable if it’s honored. Automated technology continuously monitors your carrier invoices to ensure compliance with your negotiated terms. These systems automatically flag incorrect charges, service failures, and any deviations from the agreed-upon rates, so you don’t have to manually check every line item. This not only saves time but also ensures you get the savings you fought for. An ongoing invoice audit process catches errors as they happen and provides a steady stream of performance data, which becomes powerful leverage for your next contract renewal.
Avoid These Common (and Costly) Negotiation Mistakes
Negotiating with carriers like UPS and FedEx can feel like a high-stakes game, and it’s easy to make a misstep. Even seasoned shippers can fall into common traps that leave money on the table and expose their business to unnecessary risk. The key is to approach the negotiation with a comprehensive strategy that goes beyond the obvious. By understanding these frequent mistakes, you can sidestep them entirely and secure a contract that truly works for your business, protecting your bottom line and improving your operations.
Focusing Only on Base Rates
It’s tempting to fixate on the base discount rate. While a low shipping rate is important, it’s only one piece of the puzzle. A great discount means very little if your carrier can’t handle your peak season volume, doesn’t offer refunds for late deliveries, or is inflexible when disruptions occur. A strong carrier partnership includes clear performance promises, reliable communication, and proactive tools to manage your shipments. Before you sign, ask about service-level agreements (SLAs), capacity guarantees, and how they handle exceptions. True contract optimization involves balancing cost with service quality to find a partner who supports your business goals.
Ignoring the Contract’s Fine Print
The devil is always in the details, and parcel contracts are no exception. Carriers are masters of complex agreements filled with dense language, and overlooking the fine print can lead to surprise fees and unexpected cost increases down the road. Pay close attention to the terms and conditions surrounding accessorial fees, minimum charges, dimensional weight (DIM) factors, and the carrier’s right to change terms. A seemingly small clause can have a massive impact on your total shipping spend. Taking the time to read and understand every line helps you maintain control over your budget and avoid costly surprises.
Forgetting to Review Contracts Regularly
Signing a multi-year agreement doesn’t mean you can set it and forget it. The shipping industry is constantly changing, with annual General Rate Increases (GRIs), new surcharges, and shifting fuel costs. It’s a smart practice to review your shipping agreement at least once a year, even if you’re not at the end of your term. This allows you to assess the impact of recent changes on your costs and identify if your contract is still competitive. An ongoing invoice audit and recovery process can help you spot these rising costs and build a case for renegotiation before your contract expires.
Not Involving Your Whole Team in Planning
Parcel contract negotiation shouldn’t happen in a silo. Your best deal is secured when you have input from across your organization. Your operations team understands the on-the-ground service realities, from pickup times to delivery accuracy. Your finance department can speak to budget constraints and payment term preferences. Customer service knows how shipping performance impacts customer satisfaction. Involving stakeholders from different departments early in the process ensures you’re negotiating for terms that benefit the entire business, helping you reduce distribution and fulfillment costs holistically rather than just chasing a single discount.
Did It Work? How to Measure Your Success
You’ve put in the work, analyzed your data, and signed a new carrier contract. But the job isn’t over yet. The final, and arguably most important, step is to track your results. Measuring your success isn’t just about giving yourself a pat on the back; it’s about proving the value of your efforts and identifying what to target in your next negotiation.
Think of it as a report card for your shipping strategy. Are you getting the A+ in savings you aimed for? Is your service level still top-notch? By focusing on the right metrics, you can get a clear picture of how the new contract is performing and ensure you’re getting every dollar of value you negotiated. This ongoing analysis helps you stay ahead of the curve, build a stronger case for future negotiations, and keep your logistics operations running smoothly. Let’s break down exactly what you should be looking at.
Key Performance Indicators (KPIs) to Watch
To see if your new contract is truly working, you need to look beyond the invoice total. Tracking the right key performance indicators gives you a holistic view of your shipping operations. Start by focusing on four core areas: customer experience, service levels, profitability, and delivery performance. This means monitoring metrics like on-time delivery rates, cost per package, transit times, and even the number of customer service complaints related to shipping. By keeping an eye on these numbers, you can spot trends, catch potential issues before they become major problems, and confirm that your cost-saving measures aren’t negatively impacting service quality.
Calculating Your Cost Savings and ROI
This is where you see the direct financial impact of your hard work. To calculate your return on investment (ROI), compare your shipping spend from before and after the new contract took effect. Be sure to use an apples-to-apples comparison by looking at similar shipping volumes and profiles. Don’t just look at the base discount; factor in the reductions you secured on surcharges and accessorial fees, as this is where significant savings are often found. Effective parcel contract optimization can lead to substantial results, with many shippers seeing cost reductions of over 20%. Quantifying these savings makes it easy to demonstrate the value of your negotiation strategy to company leadership.
Tracking Service Level Improvements
Saving money at the expense of customer satisfaction is a losing game. That’s why it’s critical to monitor your service levels just as closely as your costs. Your new contract should maintain or even improve the delivery experience for your customers. Use shipping analytics to track on-time performance for each service level you use. Are your ground shipments still arriving within the expected window? Are your express packages meeting their guarantees? Evaluating the trade-offs between price and delivery time helps ensure you’re not just shipping cheaper, but also shipping smarter. This data is your proof that you’ve optimized for both cost and quality.
Don’t Set It and Forget It: Ongoing Contract Management
Securing a great parcel contract is a huge win, but the work doesn’t stop once the ink is dry. Think of your carrier agreement not as a finished product, but as a living document that needs regular attention. Your company’s shipping profile will inevitably change—you might expand into new markets, launch different products, or see shifts in customer buying habits. At the same time, carriers are constantly updating their rates, surcharges, and service offerings. Treating contract management as a continuous cycle is the only way to ensure your rates remain competitive and your agreement continues to serve your business needs.
An effective ongoing management strategy has three core components: scheduling regular reviews, constantly analyzing your shipping data, and nurturing a strong partnership with your carrier. This proactive approach helps you catch costly issues before they escalate, identify new savings opportunities as they arise, and maintain the flexibility you need to adapt to market changes. By staying engaged with your contract and your carrier, you move from a reactive position to one of control, ensuring your logistics operations remain a strategic advantage for your business. This isn’t about micromanaging; it’s about smart oversight that protects your bottom line.
Schedule Regular Contract Reviews
Managing your carrier contracts should be an ongoing process, not a one-time task. At a minimum, you should plan to review your agreements at least once a year, but a quarterly check-in is even better. Set a recurring calendar reminder so it doesn’t fall through the cracks. During these reviews, you’re checking to see if the terms still align with your current shipping patterns. Are you hitting your volume tiers? Have new surcharges become a significant cost center? Is the carrier meeting its performance promises? Knowing the answers to these questions keeps you prepared for your next contract optimization and ensures you never miss a renewal deadline or an opportunity to renegotiate from a position of strength.
Continuously Monitor Your Shipping Data
Your shipping data is one of your most powerful assets in managing logistics costs. By continuously monitoring it, you can put your data to work uncovering unexpected fees, carrier billing errors, and other avoidable costs. A detailed invoice audit can reveal discrepancies that add up to significant losses over time, like incorrect surcharges or charges for services you never received. Beyond just catching mistakes, ongoing analysis helps you spot trends. For example, you might notice a spike in residential delivery fees or dimensional weight charges, giving you the specific information you need to adjust your packaging strategy or negotiate better terms for those specific accessorials in your next discussion with your carrier.
Build Strong Relationships with Your Carriers
While it’s easy to view your relationship with a carrier as purely transactional, building a genuine partnership can pay off in big ways. A strong relationship is built on clear communication, mutual trust, and a shared goal of efficient, reliable shipping. When your carrier representative understands your business and its challenges, they can become a valuable resource, offering solutions and advocating for you internally. This partnership proves its worth when problems arise. A carrier you have a good relationship with is more likely to work with you to resolve disputes, offer flexibility during peak season, and provide proactive support to help you manage shipping before small issues become major disruptions.
Ready to Optimize? Here’s How to Start
Taking the first step toward parcel contract optimization can feel like a huge task, but it’s more manageable when you break it down. It all begins with understanding what you’re currently working with. Think of it as building a foundation—the stronger your data, the better your negotiation position.
Get to Know Your Shipping Profile Inside and Out
Before you can ask for better terms, you need a crystal-clear picture of your shipping habits. Start by gathering at least 12 months of shipping data. You’re looking for the specifics: How many packages do you ship monthly? What service levels (ground, 2-day, overnight) do you use most often? What are your average package weights and dimensions? Where are you shipping to most frequently? This information is your leverage. When you can walk into a negotiation with precise data about your volume and needs, you’re no longer just another customer; you’re a partner with predictable business to offer. Keeping a close eye on these reporting and KPIs is the first step to taking control.
Put Your Data to Work with Analytics
Once you have your data, it’s time to analyze it. This is where you can uncover the story behind your shipping spend. Look for patterns and outliers. Are certain surcharges driving up your costs? Are you paying for service levels you don’t actually need? Advanced analytics can help you spot everything from unexpected fees to carrier billing errors. A thorough invoice audit and recovery process often reveals simple mistakes that add up to significant costs over time. By identifying these avoidable costs, you can build a strong case for changes to your contract that will directly impact your bottom line.
Don’t Go It Alone—Lean on Expertise
Carrier contracts are notoriously complex, filled with dense language and hidden clauses designed to benefit the carrier. Trying to decipher them on your own can be overwhelming. This is where partnering with an expert can make all the difference. Specialists in parcel contract optimization have the industry knowledge and technology to benchmark your rates against the market, model different contract scenarios, and guide you through the negotiation process. They can help you identify opportunities for savings that you might not see on your own, ensuring you secure the most favorable terms possible.
Frequently Asked Questions
How do I know if my current contract is actually a good deal? A good deal is about more than just the discount percentage on your rate sheet. A truly competitive contract is tailored to your specific shipping patterns, minimizing the impact of surcharges you frequently incur and offering protections that matter to your business. If your “good” discount is constantly being eroded by hidden fees or if your service levels are inconsistent, it’s likely time to take a closer look. The best way to know for sure is to benchmark your complete agreement against current market standards.
Isn’t focusing on the base rate discount the most important part of a negotiation? While the base rate is a key component, it can often be a distraction. Carriers know that shippers focus on this number, but the real profit is frequently made in the dozens of accessorial fees and surcharges. A contract with a fantastic base discount can end up being more expensive if it doesn’t address the fees that are most common for your business, like residential delivery or dimensional weight charges. A truly optimized contract takes a holistic approach, balancing the base rate with significant reductions on the fees that actually appear on your invoices.
How much can a business realistically save through contract optimization? The savings potential varies based on your specific shipping profile and current agreement, but it’s often substantial. Many high-volume shippers who go through a thorough optimization process find they can reduce their annual parcel spend by 20% or even more. These savings don’t just come from a single discount; they’re the result of a comprehensive strategy that includes better base rates, lower surcharge costs, and the elimination of billing errors.
What if I don’t have a dedicated team to handle this kind of in-depth analysis? That’s a very common situation, and it’s precisely why many businesses choose to work with outside experts. The process of collecting, cleaning, and analyzing shipping data is time-consuming and requires specialized knowledge. Partnering with a firm that has the right technology and industry experience can level the playing field. They can handle the heavy lifting of the data analysis and provide the market intelligence needed to build a strong negotiating position, allowing you to focus on running your business.
My shipping volume changes a lot. How can I get a contract that works for my business year-round? This is a critical point to bring up during your negotiation. A one-size-fits-all contract won’t work for a business with seasonal peaks or fluctuating volume. The key is to negotiate a tiered pricing structure that rewards your volume as it grows. You can also secure more favorable terms for peak season surcharges by providing the carrier with accurate volume forecasts. This helps them plan their capacity and gives you more predictable costs when it matters most.