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Who Should Own the Household Goods Carrier Contract?

Editorial Article

Published: Apr 19, 2019

The decision may seem simple, but it can really be quite complex.

The complexity comes from the many nuances of household goods contracts; and even more so as carriers adopt their own tariffs.  While modeled after the 400N Tariff, each contains slightly different terms.  Each regional and cross-country traffic lane has specific agents from various carriers that provide the strongest service; specific charges may be called out as a line item or built into the tariff; and value-added services and guarantees are available and expected.

So…Who Should Own the Contract?

The company with the most experience and expertise in purchasing and managing household goods carrier services should, in our opinion. If that entity is NEI Global Relocation, then NEI should own the contract; if it is the corporate client, then the corporate client should own the contract.

The next logical question?

How much experience and expertise does NEI have purchasing household carrier services?  That’s the question we’d like to answer.

39 years’ experience

  • NEI has analyzed tariffs and negotiated carrier rates and contract terms for 34 years; our management team has an additional five years’ experience in this practice

No conflict of interest  

  • NEI does not own a household goods moving company

All major U.S. Domestic and International franchised and independent carriers available 

  • NEI has contracts with all major carriers

Comprehensive tariff analyses 

  • Completed by NEI on all carrier contracts for cost comparison and negotiations

Strategic contract negotiations 

  • All contracts are negotiated at the same time to bring the greatest value to NEI clients

Performance metrics drive business and rate each carrier

  • Quantitative and qualitative metrics determine future business opportunities for carriers 
  • Relocating employees and NEI Account Executives rate every move

Transparent pricing and referral fees

  • No mark-ups or additional fees are added to client invoices
  • Carrier invoices are available for client audit 
  • Relocation management companies receive referral fees, where available, as compensation for otherwise billable client program management fees

Consolidated corporate contracts

  • NEI’s model reduces all major carrier contracts into one master agreement for our clients
  • NEI manages downstream service providers

Invoice audits 

  • NEI conducts invoice audits against contract terms and authorized program benefits

Volume discounts and value-added services

  • Clients benefit from NEI’s aggregate volume
  • Value-added services include unpacking of mattresses and several boxes, coverage on goods up to $125,000 on intra-U.S. domestic moves, sets and pairs, and on-time delivery pledge

Client updates and business review

  • Timely communication of service and statistics provide clients access to performance, service resolutions and costs.

How does NEI qualify carriers for our clients?

When NEI begins working with a client, our Service Partner Relations team examines the client’s common traffic lanes and anticipated volume, then recommends the most qualified agencies based on geographic reach, traffic lane strength, on-time delivery rates, claims ratios, flexibility with special requests, and demonstrated ability to handle service and volume fluctuations. 

We provide training on the moving services portion of the client’s policies and re-qualify agencies at the time of assignment to ensure availability and meet our time frame requirements for each move. 

What if the client prefers to own the contract?

Whether we manage your existing household goods contracts or ours, NEI provides Service Exceeding Expectations on each move for a fee reflective of the work involved in managing the service.   

Please contact your NEI representative to learn how we can help you save time, money, and resources by managing your U.S. domestic and international household goods transportation programs.
 

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