Easy freight tenders
The journey of selecting the right carriers and finding the best prices during freight tenders can be very burdensome to many. Not just to shippers, but also to the carriers!
The quest of retrieving historical data, understanding the ideal set-up for your shipment profile, inviting the right carriers, taking into account forecasts and regulations just to mention a couple of items that are often challenges on the input side. When it comes to “running” a tender there are other items to take care of such as following up with carriers, analyzing the rates, running scenarios, internal discussions and negotiations with carriers. This is altogether a lot of work and often a process that takes more time than anticipated. Companies have consultants run tenders as they don’t have the expertise, use software to do a part of the tender or use plain excel, e-mail and phone to support the tender.
What is key to making freight tenders successful?
The most important thing when running freight tenders is to have the BASICS right:
- DATA. Have the right data in place or make it easy to gather either historical or forecasted data
- KNOWLEDGE. Have enough knowledge of how carriers work, how the industry works and of the logistics players in your industry, sounds obvious but this is not always the case
- PROCESS. Have a strong solution in place to manage the tender as a whole, not only the data and the calculations but also communication with carriers, internal stakeholders about updates, feedback, corrections, new rounds, etc.
- TIME. Make sure you plan or build tendering well into your schedule and routine. Often it is either an extra job to someone’s routine leading to overwork and stress which will have its’ effect on the tender outcome.
Typically these 4 points are not ideally set-up for most organizations or people involved with tenders and could be easily improved by getting outside help via consultants, with software or cloud-based tender solutions. It will lead to more savings in both time and money!
About the author
Pieter Kinds (41) is CEO of TenderTool, a cloud-based logistics sourcing platform.