5 proven tactics to receive the best Freight RFQ results

Are you currently getting the best freight RFQ results?

 

Logistics managers and tender managers are often overwhelmed when gathering the copious amount of information required to extend a Request for Quotation (Freight RFQ).

Especially, for less-experienced tender managers, or professionals creating their first tender document, the workload is high. However, the preparation of a Transportation RFQ is a rewarding exercise.

Two important reminders before creating the freight RFQ process

1. Preparing a freight RFQ is an investment for your firm.
2. A clinical and accurate examination of previous freight activities (historical shipment data) is crucial.

 

In the past, there always seemed to be a disconnected process, filled with secrecy during a freight tender. Communication and collaboration between shipper and supplier were utterly scarce. Now, we tender freight different in the logistics industry. The reason for this seems to be the need for more communication. As a result, we communicate more frequently, and shippers are no longer trying to squeeze everything out of suppliers. We are no longer focussing at just pricing. Qualitative elements are often equally important. Therefore, many in the logistics industry seek a collaborative approach when taking on a carrier that essentially becomes an extension of their own company.

The goal of freight tendering is after all to establish a strong partnership with a commitment from both sides. Tip: Many freight tender managers now run their tenders in the cloud. During the RFQ time, they can run all dialogs and communication with suppliers / carriers via an online platform. Everything is documented inside the cloud (business rules). After awarding, the tender documentation serves to prevent misunderstandings in the future.

5 proven tactics to receive the best freight RFQ results

1. Use a comprehensive, standardized process

The freight industry is all about collaborative partnerships, and it really involves every aspect of the chain. Whether you are tendering Air, Ocean or Road transportation contracts, the goal can never be to ‘bother’ your potential suppliers with lengthy and difficult RFQ procedures. Moreover, suppliers don’t have the time to participate in all tenders they receive. So make sure you make your tendertool.ahabr.tech, your process appealing. Make their lives easier, and you will always benefit.

Read more: How Freightender helps carriers that receive an enormous amount of freight tenders in different formats.

2. Real-time monitoring. Don’t be fooled

After launching or opening your Tender, the high workload consists of tracking progress until the Submission Deadline. You need to monitor your invited carriers. And this is going to cost you time and effort. By using a cloud-based solution, you can dramatically reduce that time. Forget about email and Excel. All the progress is stored in the cloud. Inside the Tender solution. This provides you with real-time data and supplier tracking AND decision making.

3. Pretend suppliers are all new suppliers

The incumbent has all the knowledge on the freight. better than any supplier invited to bid. They know the current freight rates and the freight costs associated with the load and transport. New carriers are sometimes inclined to add a ‘fudge factor’ in their bid if they are uncertain of what the total package actually is. Therefore, it is essential that all parties invited to submit a proposal are provided with as much information as possible in order to keep a level playing field. Awarding a bidder with incomplete information will likely cause unnecessary headaches for both parties in the future.

4. Deadlines. Be flexible

Make sure you give suppliers enough time to participate. Remember, your suppliers are probably working on multiple tenders at the same time. As a result, make sure your deadline is set between 3 and 6 weeks. Besides the milestones and deadlines, make sure that documentation is centralized. The last thing you want is delayments because quotation and submission can’t be presented.

5. Standardize Accessorial costs

Accessorial charges vary widely from carrier to carrier in each mode of transport. These charges such as free time, fuel surcharges etc. can represent up to 35% of any company’s overall freight costs. Standardizing these charges in the RFQ for all carriers eases the time and complexity of evaluating offers and once a carrier is nominated, auditing incoming freight invoices.

EXTRA Freight Tip: Do not commoditize your freight RFQ process

Finally, a global logistics company receives many freight RFQ’s on a yearly basis, you should be aware of the burden of the process on the other side. On the other side, you might not get the right freight rates if your approach is too global. “We ran the complete Transport Tender for 1 year which means I have the best price.”

If you want to enjoy good freight rates and improve or build global partnership you should have the possibility and capability to act and to tender on a regional and local level.

therefore, you should run smaller tenders and invite fewer carriers, but with more specific instructions and more focus at the carriers. As a result of this, your suppliers will gladly return the favour and recognize that you are not commoditizing their services but serious about a partnership.

 

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!

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9 crucial tips for your freight RFQBest practice in freight procurement

9 important suggestions based on our experience of working
with 100's of companies on their freight tenders.