DMG Distribution Management Group







The Distribution Management Group, Inc.

About DMG, Inc.

The Distribution Management Group, Incorporated (DMG) was formed to provide a much needed service in today’s competitive environment of small parcel and letter shipping.

The small parcel shipping industry has evolved dramatically over the past five years, and the contracts initiated by your carriers (Federal Express, UPS, Airborne, etc.) have become increasingly dynamic as a result. This is not a coincidence. Today's carriers have become much more conscious of their margins and the elements of delivery that truly drive their profitability. When these carriers are competing for your business, they will always analyze your shipping and package profiles and trends, feed them through complex pricing algorithms, and determine how profitable your shipping volume can be to their business...to the cent.

While you may be comfortable with your company's discounts off of published rates, your carriers are going continue increasing the published rates every year (GRI's). While the carriers downplay the impact of these increases, the actual affect on your bottom line is likely much different that what is advertised. In addition, carriers continue to add and increase "accessorial charges." Quite often, what you see on your contract is far different than what you realize on your invoice. Carriers have implemented over 80+ accessorial charges from Rural Delivery to Address Corrections and Overweight Charges. The surcharges generate over 30% of your carriers' revenues and can have the same negative impact to your bottom line. Knowing which accessories are negotiable can make a huge difference in your shipping expenses.

Understanding how carriers value your business is DMG's true market niche. It is quite common that the carriers know more about their customers' shipping characteristics than the customer himself. DMG can help educate your company to maximize your negotiating leverage. DMG will perform the same distribution analysis, for free nonetheless, that the carriers would perform, apply your characteristics to the same pricing algorithms, and arm your company with information to either renegotiate current contracts or develop relationships with alternative carriers. There is no better ammunition to carry into contract negotiations than the detailed characteristics of your shipping volume. Your carriers understand them, and so should you.

DMG is not your ordinary consulting firm. What differentiates DMG from the rest?

  • Breadth of supply chain experience – DMG’s team of experts possesses decades of management level experience within both shipper and carrier organizations
  • Personal relationships at the top levels of today’s primary parcel carriers
  • Efficient and effective data collection and opportunity implementation
  • No risk and haggle-free pricing
  • A proven track record!

Contact The Distribution Management Group today!

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