top of page

The Benefits of Pre-Established Rates

A customer - vendor relationship is an important one, especially in the supply chain and logistics industry with supply and demand constantly in flux, continuous orders pouring in and often fulfilling quick lead-times. When that customer - vendor relationship is solidified, having pre-established rates can benefit both parties so that business can continue flowing at a steady rate to provide customers with the materials they need at the times they need them.

What is a Pre-established Rate?

In logistics, a pre-established rate is a dollar amount agreed upon between the customer and vendor where the terms and price are specified in advance. This could be done on an annual contract basis or as minimal as a monthly or quarterly basis.

Approval Process

A major benefit to having a pre-established rate agreement in play is that the approval time is none! If the deal falls into the agreed upon terms and price range, the vendor will take care of the order and shipment because they know it fits into the agreed upon rate. This ultimately shortens the time and approval process and keeps your orders flowing. If the rate does not fit into the pre-established rate that was determined, those orders will be discussed before agreeing to fulfil.

Planning and Predictability

Pre-established rates allow planning to be seamless because it helps understand order sizes, products to be shipped and other logistics that take place with each order. If certain orders happen over and over again it leaves room for predictability and forecasting on both ends. Vendors will know how much product to order and how many shipments might go out each month. While the customer knows how much they might be paying the vendor to complete their orders.

Dependability and Trust

The biggest benefit to pre-established rates is dependability and trust. When a customer agrees to this rate with a vendor, they are trusting that their orders will be fulfilled and shipped out in time. They are signing an agreement that when orders come in that fit the criteria, these orders will be taken care of without hesitation. As a customer, it is nice to know that everything will be taken care of time and time again.

Ultimately pre-established rates have significant benefits to both parties, but it is important to be selective when choosing to work with a vendor or customer! At No Limit Logistics, we work with customers to ensure their orders are shipped to their destinations on time. When we have a pre-established rate, our team will have your rates on-hand so that we can ship them to the desired location without any hiccups!

73 views0 comments

Recent Posts

See All


bottom of page