Third-party logistics service provider Genco ATC has told parcel shippers that it can cut their spending by up to 20 percent by analyzing 30 days' worth of their shipping data.
The company, the product of a merger between Genco Supply Chain Solutions and ATC Technology Corp., said it will offer shippers who sign up a free estimate of their parcel spend and potential savings, and then take a share of the savings shippers obtain through what the company calls "mediation," where it acts in an advisory capacity and lets the customer negotiate on its own.
The company says shippers can realize significant cost savings within 90 days of implementing its recommendations.
Genco ATC is one of a cluster of so-called parcel consultants that have carved out an increasingly important niche in helping shippers save money on their parcel shipments, primarily with FedEx Corp. and UPS Inc.
Growing tension between the two giant parcel carriers and parcel consultants led FedEx and UPS to issue policy directives in April changing the way they work with consultants. AFMS LLC, one of the oldest and largest parcel consultants, sued FedEx and UPS in August on grounds that the companies unlawfully colluded to refuse to do business with AFMS.