What is the difference between old and new technology in logistics sourcing and procurement? How does it affect the freight tender process?
The time of tendering freight and logistics services via outdated, generic platforms is slowly coming to an end. Carrier users are highly frustrated with it and it provides very little transport intelligence to the process. As a result, shippers quest for an alternative solution. But there is a problem. Many people in logistics procurement have no clear view of feasible solutions and corresponding providers. In this post, we are focusing on the process improvements of modern-day E-sourcing tools for logistics, compared to their older competitors.
Freight tender process
So why is using the latest technology so influential to the freight tender process?
To make a tender flexible, efficient and smooth! If you are a midsize company or large corporate and still tender via homegrown excel files and macro’s, then obviously you are far from best practice. Freight tenders can be standardized to a high degree. The shipper will be put in control of rate cards, delivering enormous time savings and automating scenario building.
Freight tender process – Generation wars
1st generation freight tender software brought freight tendering online, the 2nd generation added all functionalities, and 3rd gen-tools make freight tenders easy and highly automated. Freightender is currently the only 3G Sourcing solution available in the market.
Freight Tender process – Old versus new technology
- Freightender covers many specific rate logic and business rules that generic tools do not offer. This is thanks to the fact that Freightender is a spin-off of ControlPay and specific rate knowledge and experience was applied and incorporated into Freightender
- Many of the older E-Sourcing solutions (1st and 2nd generation) are long on the market and have a less flexible IT-architecture. This means that they cannot develop rapidly new functionalities based on customer requests
- According to all people who have seen our platform, it is more user-friendly and more modern than older interfaces, which requires more knowledge, more training to operate
- With Freightender you will have online Business Intelligence and scenario building while with many older providers you will need to ask their consultants and pay extra to build those reports
- 1st and generation tools are therefore way more expensive
- Implementation time of Freightender is much shorter, training for users is limited thanks to the intuitive set-up of the system
- Freightender takes fully care of the carrier support desk wherewith other providers you will need to support carriers if they have any questions about the platform
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