Case Study
A Transportation Firm Re-Negotiates with its Biggest Client
A Transportation Firm Re-Negotiates with its Biggest Client Business Issue For the last thirty years, a Fortune 500 manufacturer has turned to the same transportation firm to be its largest truckload provider. The transportation firm assigned a new global general manager to the manufacturer’s account five years ago. The transportation company’s global GM serves as a “relationship manager”, handling customer service needs, order fulfillment, and re- negotiation of contracts. Companies normally re-negotiate transportation contracts about every six months based on market intelligence that indicates how fuel prices, driver salaries, and market averages are changing. However, the recent recession has made these contract re-negotiations much tenser, as the margin of profit has grown thinner. The