fbpx
DB Schenker - Now That's Logistics
  • English
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
No Result
View All Result
DB Schenker - Now That's Logistics
No Result
View All Result
Home Insights

Coming up with an Innovative Pricing Model for a Key Customer

July 9, 2014
Share on FacebookShare on Twitter

Electronic Vertical Management Team

We’re always looking for new and innovative ways to help our customers. That’s why they stay with DB Schenker. For most customer engagements, we provide a quote to move their products in the most expeditious ways – whether land, ocean or air.

 

DB Schenker has been moving freight for one major, global electronics manufacturer since the summer of 2012, but around the time for renewal in 2013, we told them that we were going to recommend a better solution for their ocean business. After a couple of months of research and negotiations with our ocean and ground carriers, we suggested a Cost Plus pricing model.

Under the Cost Plus model, we constantly monitor the prices charged by our ocean and land partners. Generally, we can book ocean passage up to two weeks before the ship leaves the port of origin. If we can find a less expensive rate, we pass that savings on to our customer and charge a fixed DB Schenker management fee on top of that to cover our cost of doing business. In this way, the customer knows we are working hard to find them the lowest rate and best delivery time to suit their needs.

Obviously, this Cost Plus model won’t work for every customer. It works here due to increased ocean carrier competition, allowing us to negotiate better rates. Because of some creative thinking and sharp negotiations utilizing a Dynamic Procurement Strategy – with ocean carriers in particular — we can look forward to more organic growth with this key customer moving forward.

Electronic Vertical Management Team

Tags: Contract Logistics
Next Post

Schenker, Inc. part of IAEE and IELA

RECOMMENDED

Top 15 Ports in The Americas

Top 15 Ports in The Americas

March 16, 2018
Top 15 Ports in the Americas 2019

Top 15 Ports in the Americas 2019

June 24, 2019
USA, CCO Bill Heaney

Thought Leadership Updates with Bill Heaney

May 16, 2022
Top 2022 Ocean Shipping Trends and How to Navigate them

Top 2022 Ocean Shipping Trends and How to Navigate them

March 23, 2022

TRENDING

The Top Air Cargo Airports in the US

The Top 10 Freight Airports in the US

March 12, 2019
Managing the 180-Degree Shift in Land Transportation Dynamics

Managing the 180-Degree Shift in Land Transportation Dynamics

May 4, 2022
Thought Leadership Updates with David Buss

Thought Leadership Updates with David Buss

May 9, 2022
3 Things You Need to Know about Importing Chocolate

Three Things You Need to Know about Importing Chocolate

February 2, 2017
The Port of Vancouver — What Drives Canada’s Busiest Gateway

The Port of Vancouver — What Drives Canada’s Busiest Gateway

December 13, 2018
DB Schenker

DB Schenker is the world's leading global logistics provider, delivering over 150 years of premium performance and transportation solutions. One call gets our customers on the fast track to nearly 2,000 locations in all of the world's most important economic regions.

Contact Us

United States
+1 (800) 225-5229 (in USA)
+1 (602) 458-6200 (outside USA)
www.dbschenkerusa.com
Canada
+1 905 676 0676
www.dbschenker.ca

Categories

Visit Us

• DB Schenker Americas
• DB Schenker Canada
• DB Schenker Careers
• DB Schenker USA
• Trade Advisory Solutions

Follow Us

• LinkedIn
• Twitter USA
• Twitter Canada
• Facebook

© 2020 Schenker Americas, Inc. | Privacy Policy

No Result
View All Result
  • Insights
  • Shipping & Logistics
  • Digitalization
  • Trade
  • Industries
    • Aerospace & Defense
    • Automotive
    • Beverages
    • Chemical
    • Consumer
    • Electronics
    • Fashion & Retail
    • Healthcare & Pharma
    • Industrial
    • Marine Parts
    • Oil & Gas
    • Semi Conductor & Solar
  • pt-br Português
  • fr Français
  • es Español
  • en English

© 2020 Schenker Americas, Inc. | Privacy Policy

We use cookies in order to optimize our website and continually improve it. By continuing to use this site, you are agreeing to our use of cookies. You can find further information on cookies in our privacy policy. Accept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT