Top Tips for Suppliers of Parcel Delivery Services

1. Minimum volumes:

Pricing is usually agreed at the tender stage, on the basis of a predicted minimum volume. It’s essential that this minimum volume is recorded in the contract, together with a mechanism for pricing to change if the actual volume differs from predicted volume.

2. Forecasting:

In order to maximise capacity in your network, you clearly need to know how many parcels to expect each day. So, make sure the client has a clear obligation to provide accurate daily, weekly, monthly, annual and peak forecasts. And then document the consequences for failure to hit those forecasts.

3. Service levels:

These are a key focus for retailers (both in terms of delivery times and parcel loss or damage) and so it is critical to document any reasons that might justifiably prevent you from meeting those levels (examples include inaccurate delivery data, oversized parcels, inadequate packaging or labelling, late receipt of parcels into your network and weather or traffic conditions).

4. Liability limits:

There is so much to think about here - liability for the parcel itself (due to loss or damage); liability for third party property damage caused by your drivers; and all other types of liability (e.g. data protection breaches). Make sure that you have appropriate liability limits for each type of loss, as well as a clear – and reliable – claims process.

5. Prohibited goods:

Make sure you’re explicit about the types of goods you either can’t carry (for legal reasons, e.g. weapons, chemicals etc) or won’t carry (because your network isn’t geared up to take them – whether due to the dimensions, fragility, value or some other reason). Ideally you would get an indemnity from your clients to cover any failure to comply with this restriction.