The Business of Independent Service Provider Contracting

The Hidden Cost Of  The MESO: Is Efficiency Hurting Your Business? - (Part Two)

Posted by Jeff Walczak on 1/15/26 9:21 AM

Last week, we explored our recent finding that the MESO negotiation process may have an inherent unintended issue. We have found that when MESOs are accepted, it may not facilitate a current cost examination for CSAs and, when enough contractors in a terminal accept MESOs, it could affect an entire building.

Whether you are approaching a standard end-of-term renegotiation or facing a new contract due to Network 2.0 optimization, the pressure to make the right financial decision is intense. When presented with a Multiple Equivalent Simultaneous Offer (MESO), the path of least resistance is to simply pick one and move on. It feels efficient, and it minimizes conflict.

However, in the logistics business, what feels easiest is rarely what is most profitable.

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Topics: FedEx, Business, Contract, Negotiation, Cash flow, Costs, renegotiation, Network 2.0, Express, Contracting, BudgetIQ

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