Tender Freight: the eight steps that changed procurement

Tender freight: The eight steps that changed freight procurement

How can freight tendering become more efficient, cost-effective and rewarding for your business? Well, the answer lies in eight (simple) yet complicated steps.

Ok, that sounds very complicated and does not make any sense you might think. Well, it actually does. The eight steps we are going to walk through in this blog, are in fact rather simple and comprehensive, provided that you use adequate freight procurement software that shifts the (logistics) complexity of tendeing completely to the background.

1. Baseline creation

The freight tender process starts with gathering the raw shipment data. It’s important that the data is of decent quality, as good as possibly can be collected because this will shape into shipment profiles.

2. Shipment profile creation

After the analysis and the creation of these shipment profiles, a clear view of needs will be visualized by the tool. Different profiles have different requirements and possibly distinct rate cards. The importance of the quality of the shipment profiles is honourable because this will secure that the suitable logistics service provider can be selected and invited.

3. Questionnaire creation

The third step of our e-sourcing solution is to guarantee that all business requirements are clear. Let’s face it, a good questionnaire is rather important for setting up a quality transportation tender. Every Tender is different and comes along with its own specifications, certifications, equipment and other needs. A clear and transparent freight tender is the result, making sure that it is clear for logistics service providers what is required.

4. Rate Card(s) creation

One of the most important things to succeed with your freight tender is ensuring that all business requirements are covered. The creation of good and solid rate is THE ingredient for this. Because Freightender is a Dutch start-up coming from freight auditing experts,  we understand the importance of not letting any room for interpretation when filling these out. That way it is easy to make an objective analysis of the rates provided by all the carriers selected for the tender. There will also be no surprise additional fees later on. If there is no room for interpretation, everything is clear to everybody.

Watch the video below to see how easy it is to create a clinical rate card for air shipments using Freightender Freight Sourcing Software in the cloud.

 

5. Send Request for Quotation (RFQ)

What seems simple isn’t always in the world of freight tendering. Sending the RFQ is one of those things. The key is the quality of your carrier database. Your requirements must meet the capabilities of the right carrier. The better the match between the two, the higher the quality of the later on tender result.

6. Create Tender Shortlist

Time to analyze! The returned rate cards and questionnaires from the invited carriers need to be scrutinized. For example; carrier number one may be the cheapest on a single lane, but carrier number two may cheaper when combining multiple lanes. This expert insight you simply don’t get when running your freight tender over the phone and in Excel. Based on your own research, carriers can be selected for during multiple rounds.

7. Freight Tender impact analysis

After all logistics service providers have answered the required questions (questionnaire) and rate cards are filled it, it is time for the final analysis. Because not all logistics service providers are the same, and not awarding a single carrier for a single lane, could have an effect on the pricing of other lanes. Therefore, choosing the cheapest carrier is not always the best option.  That’s why we enabled users of Freightender with a thorough impact analysis tool.

8. Get the right approvals and award!

After the final negotiations and the internal processes are finalized, the carrier that fits the profile can be awared and the freight tender is finished.

More about Freightender – Freight Sourcing in the cloud

Freightender was found by Dutch logistics veterans that have a burning passing for logistics optimization and bringing down logistics costsIf you’d like to learn more about freight tender efficiency, please contact us for a free live demo of our tool.

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

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...

Freight Fowarders: Make tenders easy together with Freightender

Are you ready for groundbreaking new technology to manage internal freight tenders? A brand-new solution from Freightender for all the parties involved within a carrier organization. This Internal Tender Management Solution is designed for forwarders and 3PL's....

Procurement of freight – emerging trends that will hit us by 2020

Are you overpaying for the procurement of Freight and RFP projects because you have been made to believe that logistics sourcing should take a lot of consultants resources and difficult calculations?    Are you paying a fortune to do excel calculations and...

3 Useful Tips From Experts In LTL Tenders

Tendering your Less-Than-Truckload (LTL) freight is often a sensitive exercise for companies. First, it is time-consuming. But moreover, the results of the tender strongly depend on a solid baseline setup.  In addition to that, a good understanding of the current...

Freight tender process: Modern solutions versus legacy tools

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...