GXO Logistics Negotiation Playbook
This playbook turns vendor negotiations from price haggling into a structured, evidence-led strategy. Expect ready-to-use levers with Ask → Target → Fallback, redline-ready clauses, and quick calculators that quantify impact in real time—plus a vendor-specific intel layer (posture, risks, benchmarks) so your moves are grounded in facts. It solves the "where do we push, with what proof, and what do we trade?" problem by bundling the best angles into deal recipes and backing each with sources. In short: a fast path from context to concrete asks, so teams negotiate confidently, consistently, and with measurable outcomes.
Build and bundle negotiation levers into ready-to-send deal recipes.
Negotiation Levers
Core negotiation "levers": each with why it matters, ask/target/fallback, clause refs, KPIs, and calculators.
Cap annual uplifts at CPI (All-Items) with any wage-specific claims tied to NAICS 493 data.
CPI cap at 0–1% adder; minimum 12-month rate hold on expansions.
CPI+1.5% with semiannual review; wage pass-through only with substantiation.
Peg to EIA diesel with fixed base and ±10% monthly band; quarterly true-up.
±10% band; transparent table; quarterly true-up.
±15% band; monthly true-up.
Rationalize carton set for top 80% of orders; SIOC for eligible models; co-invest in pack-out redesign.
5–9% parcel $$ reduction; damages <0.5%.
Pilot top 20 SKUs; expand if ROI > 12 months.
Quarterly re-slot + wave tuning with KPI gate.
≥15% picks/hr uplift on A/B SKUs.
Biannual review; partial lanes only.
Business case ≤18-mo payback; 50/50 savings share; 12–24-mo unit-rate hold on impacted processes.
>20% pick productivity uplift with rate hold.
Pilot lane with go/no-go gate.
2-day turnaround on returns; graded QC with refurb thresholds; shared recovery uplift.
≥80% returns processed ≤48h; 3–5% recovery uplift.
Top categories only; 72h SLA.
Monthly credit schedule for misses; corrective action plan in 30 days.
OTIF 98.5%; order accuracy 99.8%; inventory accuracy 99.9%.
Quarterly pooling for minor misses.
Quarterly cost review; audit rights; savings share with sunset.
Full transparency on material cost drivers.
Semiannual review; focused categories.
Consolidate codes; cap top items; dispute SLA.
Top 5 accessorials down 20–30%.
Cap 3 items; reporting on rest.
Amortize over term; clawback if early termination without cause.
Amort 24–36 months.
Front-loaded with 50% on go-live.
Monthly ops review; quarterly exec QBR; API scorecards.
Data latency <24h; exception dashboarding.
Bi-monthly ops; semiannual QBR.
Tiered credits below 99.7%; gainshare above 99.9%.
99.9% sustained over rolling 3 months.
Credits only (no gainshare).
Reserve capacity blocks with pre-agreed surge rates.
≥2.0× surge for 8 weeks with OTIF ≥98%.
1.5× surge; expanded window.
95% of inbound lines stocked within 24h (business days).
≤24h median; ≤36h p95.
48h with ASN gating.