CONTRACT LOGISTICS PROVIDERS
Contract Logistics: Price Per Pallet and Run Client Accounts
A new client starts next month, and the contract was signed at a rate per pallet that looked fine against the site cost on paper. By the second week, overtime and temporary labour are climbing, and the site manager is not sure how to say so without sounding negative.
Contract logistics owners get our help with site-wise costing, rate cards, labour planning, service-level tracking and client reviews. We do not design warehouses or choose software. We build the routine your site managers and account leads follow. We hand over formats that site managers can fill without extra staff.
Discuss your priorities ↗COMMON CHALLENGES
The pressures
we often see.
- 01Rates are quoted from a spreadsheet of average costs, and the client's actual order profile, with many small orders, turns out far more labour-heavy than assumed.
- 02Site managers know the real cost of each client but report only throughput, so the owner sees volume rather than margin.
- 03Temporary labour is booked daily through contractors on a phone call, and the cost spikes appear on their invoice a month later.
- 04Service levels such as dispatch time and accuracy are promised in the contract, but nobody measures them until a client sends a complaint.
- 05Annual rate revisions are asked for late in the year, and by then the client treats the old rate as the settled standard.
OUR FOCUS AREAS
Where the work
usually starts.
- 01A site profit and loss that shows revenue, labour, rent, equipment and overheads for each client
- 02Cost per pallet position, per order line and per dispatch, taken from actual site data
- 03Labour plan against expected inbound and outbound volumes for the next two weeks
- 04Service-level scorecard per client: dispatch on time, picking accuracy and damage reports
- 05Contract clauses on minimum volumes, storage rates, handling charges and rate revisions
- 06Utilisation of warehouse space by client and by zone
- 07Contractor labour invoices matched with attendance each week
- 08A client review calendar with a pre-set agenda covering volumes, issues and rate changes
START THIS WEEK
Things you can do
before you call anyone.
- Choose your newest client and list every handling activity done for them in a typical day. Count the minutes. Hypothetical example: 12 minutes per order line at ₹180 an hour is ₹36 of labour per line, against a quote of ₹30.
- Ask each site manager for a one-page note of labour days, overtime and temporary workers per client for last week. Compare to the revenue billed for the same period.
- Find the clause in each contract about rate revision and write the date when revision can be requested. Put those dates in the owner's calendar.
A PRACTICAL ENGAGEMENT
Start with the priorities
that matter most.
We begin by understanding how your business runs today, find the gaps, and agree the scope in writing. Recommendations are shaped around your team, your resources and your goals.
- A rate card template that separates storage, handling and value-added services
- A client-wise site profit sheet for the monthly review
- A weekly labour planning and attendance matching routine
- A service-level scorecard and quarterly client review format
Not the right fit when: Skip this for now if you face a damage or loss claim, a labour dispute or a safety incident at a site. Insurers, lawyers and the relevant authority come first.
Explore a business audit ↗LET’S MOVE YOUR BUSINESS FORWARD
