Blog
How Can Household Goods Affect Relocation Costs?
Published: Thursday, January 14, 2016
While the moving component of a relocation may appear to be universal, the way in which companies engage a household goods mover may vary. In turn, these variations can have a significant impact on a company’s total relocation costs, access to capacity, ability to track important relocation data and employee satisfaction. The three standard pricing and service methods in the moving industry are- direct, blended and bundled. Each have their own approach, which comes with a few notable differences. However, a new vertically integrated bundled model has recently emerged, combining many of the advantages of the standard three models into a unique approach.
The four models are:
Direct Model
The Company relocating its employees works directly with a moving agent to secure household goods moving services. The company can select any agent that best fits their style, culture, and moving program goals.
Blended Model
The Company managing the moving portion of the relocation works directly with the employee and corporate client when executing the move, rather than the Relocation Management Company (RMC). Although the carrier communicates directly with the corporate client, the RMC takes on sole responsibility of agent selection, which puts more of an emphasis on satisfying the RMC.
Bundled Model
The RMC selects the agent to manage the moving portion of the move, however, it is the RMC that works directly with the corporate client during the move instead of the carrier.
Vertically Integrated Bundled Model
This is the newest model to emerge and the key distinction of this model is that the RMC and the physical moving company have common ownership. Together they act as one “product.” The integrated approach simplifies and improves the moving experience by lowering relocation costs, having access to more capacity, providing a better moving experience, and speeding up communication.
It is important for companies to understand the complexities of each model to ensure that there are no surprises during or after the relocation. Companies should speak with their RMCs to understand what moving models they support and then identify their needs to determine which one is best suited for their demands.
The four models are:
Direct Model
The Company relocating its employees works directly with a moving agent to secure household goods moving services. The company can select any agent that best fits their style, culture, and moving program goals.
Blended Model
The Company managing the moving portion of the relocation works directly with the employee and corporate client when executing the move, rather than the Relocation Management Company (RMC). Although the carrier communicates directly with the corporate client, the RMC takes on sole responsibility of agent selection, which puts more of an emphasis on satisfying the RMC.
Bundled Model
The RMC selects the agent to manage the moving portion of the move, however, it is the RMC that works directly with the corporate client during the move instead of the carrier.
Vertically Integrated Bundled Model
This is the newest model to emerge and the key distinction of this model is that the RMC and the physical moving company have common ownership. Together they act as one “product.” The integrated approach simplifies and improves the moving experience by lowering relocation costs, having access to more capacity, providing a better moving experience, and speeding up communication.
It is important for companies to understand the complexities of each model to ensure that there are no surprises during or after the relocation. Companies should speak with their RMCs to understand what moving models they support and then identify their needs to determine which one is best suited for their demands.