Nowadays there is software for everything and also the logistics industry is seeing many changes in availability of applications and platforms that make life easier for shippers and carriers. There are still many companies however that hobby around to put together a Do It Yourself freight tender by making difficult Excel templates and rate structures that are often very complex and confusing. Nevertheless, they often lack key elements.
TWEET THIS (5 reasons why Shippers should stop running freight tenders without a procurement tool)
So 5 reasons why this should not be the way forward and why Shippers should abandon this poor practice.
1. Nowadays there are (logistics) procurement tools on the market that have best practice and structures in rates, questions, communication and nomination of the carriers set-up. These tools are there to help you save time and money.
2. Carriers deserve better, carriers need good information in a structured format which will save them time to make the right quotation for you instead of trying to figure out yet another home grown exotic Excel structure.
3. Think process, process, process. The production side of a Shipper organization is managed by processes and technology. If there is no good process, products will not come of the line or will be faulty. A good process creates efficiency. You should have it in your tender too. Just standard business practice.
4. Easy one: save time! Procurement tools are designed to deliver reporting and insight in an easy way whether it be for the results and the quotations or the process itself. Much better than doing Excel crunching yourself and trying to managing your e-mails to see who has questions/issues/comments/does no longer work there/on holiday and so on.
5. Last but not least: Be a pro. Tendering is not an exercise that most people do on a regular basis so it consumes extra time and is often done on the side which leads to overwork/frustration/weekend work and eventually delays. Be serious about it and make sure you can manage the tender as a pro instead of as an amateur. Carriers know it when a tender is well set-up and well ran or when it is amateur night.
Pieter Kinds is CEO of TenderTool.com and genuinely passionate about making the logistics industry more tech driven. This blog first appeared on Linkedin.