Why forwarders and carriers are pricing transportation into oblivion

Carriers are pricing transportation into oblivion

Pricing, quoting, answering to transport tenders, whatever you call the process, is a highly underrated process within many forwarder and carrier organizations. It is a process that is subject to shared responsibilities, geographical (in)differences, political games and different P&L’s. Next to that, the process is severely challenged by the lack of knowledge or understanding of how to price transportation within several areas in any transport organization. Last but not least, often, little or no investment has been made to support the pricing process with technology which leaves e-mail and excel the two main tools to battle tenders with.
 

Adding to this mix is the fact that Shippers often send carriers RFQ’s with:

 

·     Limited or poor data

·     Difficult or unclear instructions

·     Exotic pricing demands

·     Company-specific terminology

·     Too difficult excel structures

 

This makes quoting to tenders in a good way quite challenging and often brings frustrations to all parties involved but especially to the people involved from the forwarder side.

So what happens? The first round of quotation is like more or less pulling a wheel of Fortune to see where you end up relative to other bids so you can adjust accordingly. Only in round 2 things start to become interesting as your potential customer becomes your source of market intel.

 

Freightender Freight Sourcing

 

It does not have to be this way. At Freightender we are at the forefront of managing the quotation process and are engineering a highly intelligent platform that supports forwarders and carriers in their quotation processes by delivering historical tender info right at the doorstep of the next tender to be created.

Visibility, transparency, rates and historical tender data linked to your quotation process means you are on top of your pricing process from round 1.

 

Extra: 10 do’s and don’ts of Freight Sourcing

Do’s

  • Send complete and clear data
  • Contact carriers and state your intent to invite them
  • Use a dedicated freight e-sourcing tool
  • Listen to carrier suggestions and questions
  • Tender in multiple rounds as prices will go down

Don’ts

  • Make the rate card too complex

  • Treat carriers as obedient servants

  • Let people tender that have little logistics knowledge

  • Change and update tender data during the tender

  • Use generic procurement tools

Pieter Kinds

Pieter Kinds

CEO Freightender.com

Freightender is the standard in freight tendering. It makes the tender process lean, smarter and much faster. 
Fully cloud-based. Curious? Request a free live demo and join the Freight Tender Revolution!

Schedule Demo Freight Sourcing

Schedule Demo RFQ Management

How shippers and forwarders can streamline the freight tender process

In the forwarder world, there are a lot of people you typically don’t deal with as a shipper yet they are handling and responding to your tender: tender managers, pricing managers and pricing analysts. Their job is often performed under high pressure from the outside...

Freightender and Portrix Logistic Software partner to empower freight forwarder tender teams

Sep 28 2020 at 09:23 AM In 2020, the need for digitization in logistics has really accelerated and this is especially true for the freight forwarding community. One of the main areas of focus for forwarders is how freight tenders are being managed today– often a...

Freight Tenders: 5 crucial tips to ensure carrier engagement

Freight tenders are not only dependent on solid freight data (historical data). The willingness of carriers to participate in freight RFQ's is a big factor as well. In this article, we share 5 vital tips to increase carrier participation in your freight tenders. The...

Digitize logistics procurement: 5 Reasons to act NOW!

Many companies are now developing strategies to buy freight in a more digital and efficient way, creating a new structure for a lean and innovative way to logistics procurement. What are you doing? More and more forwarders discover areas for optimization and...

E-Sourcing freight checklist: What is logistics looking for?

Despite the fact that the procurement and transportation sectors are slow adopters of technology, the rat race has already begun. Many companies are inquiring the platform provides full visibility all the different steps in the project and the timing associated....

Spot bidding: what to expect in Q3-Q4 2020?

Decisions made in logistics and supply chain always have had a strong impact on a company's bottom line. It was, is and always will be a major factor to accomplish competitive advantage in any industry. One of the decisions enterprises confront is the question of...

State of logistics procurement in EMEA
(and where the market is headed)

We want to give you a short overview of what is happening in the world of logistics procurement from our perspective. LTL/FTL Freight The market has dropped enormously for most carriers. Estimates go from 50 to 80% of the business. Most shippers are holding off on new...

Why forwarders and carriers are pricing transportation into oblivion

Carriers are pricing transportation into oblivion Pricing, quoting, answering to transport tenders, whatever you call the process, is a highly underrated process within many forwarder and carrier organizations. It is a process that is subject to shared...

5 simple freight tender tips for 2020

5 simple freight tender tips for 2020 The logistics market is ever evolving and has never been more dynamic than in 2020. Globalization, digitization and political events such as Brexit make that logistics professionals need to be on their toes to ensure ongoing...

How do you rally your carriers around your freight tender?

How do you rally your carriers around your freight tender? For many, shippers and carriers alike, freight tenders are a necessary evil, yet one has to put in full effort to get satisfying results. Often this does not happen and tenders are not complete, are stretched...