3PL contract evaluation and renegotiation

We negotiate your logistics provider contract against its own invoices. Rate cards, minimum commitments, indexation, service levels and credits, liability caps and exit terms are read as the finance document they are and set against what the group pays. The Managing Partner sits across the table on every commercial point.

What comes back to you is a term sheet written for the volume the group runs now.

• A clause-by-clause commercial schedule showing each term, its cost to the group and the market position.
• An invoice reconciliation that compares twelve months of billed charges with contracted rates.
• A claims log of service credits the group was owed under the contract.
• The revised rates, service credits, indexation and exit terms, each set beside the current contract clause.
• A term sheet of the revised commercial terms, handed to your counsel to paper into the contract amendment.

• You see the variance between billed charges and contracted rates, line by line.
• The all-in cost per order is stated before and after the revised terms, on one basis.
• Service credits the group is owed become claims, and the log sets the value claimed beside the value owed.
• Leaving the provider has a price: the months of notice and the cost to exit sit on the page for the revised terms.
• Every clause that matters has an owner inside the group.

Contracts signed at launch price the group's first volumes. Volumes grow, the mix changes, and the contract does not. Indexation clauses move one way, service credits are never claimed because nobody measures the service, and an exit clause quietly makes leaving more expensive than staying.

• Invoices rise faster than order volumes, and the account manager cannot say why.
• An annual indexation clause has been applied for several years without challenge.
• Service levels are in the contract and no service credit has ever been claimed.
• Minimum volume commitments are being paid on while volumes sit below them.
• Leaving the provider would cost an amount nobody has calculated.

Chairmen, chief executives and finance directors whose group has run with the same provider for two or more years under terms agreed at a much smaller scale, or inherited through an acquisition and never reviewed.

Qasim Abbas set the capital logic behind a blended last-mile fleet of about 1,000 vehicles at BaladiMart, part of Al Baladi Group, so he reads a rate card as a cost per order. He is at the table for your renegotiation, because cost per order is the number a board holds management to.

We reconcile the invoices against the ledger the group already runs, including Xero and NetSuite. See how fees work.

What if the contract has a long lock-in?

We price the exit and the alternatives so the board sees what leaving would cost. That position is what makes a renegotiation possible.

What does our counsel receive from the renegotiation?

A term sheet ready to paper. We hold the commercial points and the timetable through to agreed terms.

Send us the contract and the last quarter's invoices. At a private briefing the Managing Partner shows you where the largest gaps sit.