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

November 13, 2017 Ken Klaver

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 scenario building while this can be done in an automated way? If that is the case, then it is time to pull the handbrake.  Buying freight has been made difficult by many because Sourcing freight is often driven by general compliance, non-value adding platforms. This is just adding overall frustration to a process which should be smooth and efficient. Freight sourcing does not have to be difficult and carriers should not be afraid to speak out to shippers how they should run their tenders. Too much ‘hobbying’ is going on in logistics sourcing from which many people suffer from within carrier organizations.

 

The way we handle Procurement Freight 

 

We are excited that many shippers have already opted to use modern solutions over legacy tools. Moreover, we see that many carriers are very positive about using a single platform and standardize tenders. If you support more standardization in tendering you automatically drive efficiency in tendering for both Shippers and Carriers, followed by cost and time savings.

 

procurement freight

Procurement Freight essentials 

 

  • Invite carriers personally to the tender
  • Use good data in a clear format
  • Make tenders as such that carriers can quote on most of the lanes
  • Communicate ongoing about feedback, changes, and updates
  • Let the partnership component be no less than the price component
  • Use a dedicated logistics sourcing platform

Procurement of Freight: 3 emerging trends until 2020

 

1. Structured rates and rules

A lot is written about the digitalization in the logistics industry and forwarder industry in particular. However what would really make companies stand out on top of that is to drive a standard in freight rate structures, business rules, and accessorial cost conventions. It is easy common ground in the logistics industry but not touched upon to make things more simple and more efficient.

2. Smart Tender Technology

Using new technology always has multiple benefits. Delivering reporting and easy building of scenarios is just one of them. What also is a very strong driver for the adoption of tender tech is the fact that you can easily manage the tender process, the communication and the documents all from one platform. This is also a benefit for the carrier, as they typically receive many tenders in different formats and struggle from the lack of standardization.Beyond that, modern tender tech makes many calculations that would take a lot of time to create, without mistakes without the need to have all that knowledge to perform them. Bottom line, using modern technology (freight e-sourcing) is easy to use and makes complex calculations easy.
The TenderTool E-Sourcing platform is the lastest solution in this scope. TenderTool is driven by user-friendliness and time efficiency which helps procurement professionals to better focus on their job and to support them with better tender outcomes. If that is worth your money?

 

3. Auctions and tenders will split

Quite often, freight tendering is still executed in combination with E-auctions. Often this is a part of the tender process and handled on the same platform. Nevertheless, many professionals in logistics sourcing are increasingly aware that this is no longer best practice. In fact, many feel that auctions are jeopardizing the ‘partnership component’. Squeezing your carriers with a limited time frame. Instead, sharing a target pricing is considered to be best tender practice.

 

About TenderTool Freight Procurement Solutions

 TenderTool is a global cloud-based freight tender platform with customers in over 30 countries. We provide a cloud-based platform for logistics procurement that is easy to introduce in your organization, simple to work with for carriers, serves advanced sourcing tenders and routine or small tenders without hassle but with the latest technology!

Pieter Kinds

Pieter Kinds (41) is CEO of TenderTool, a cloud-based logistics sourcing platform.

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About the Author

Ken Klaver

Ken Klaver governs ControlPay’s social media strategy, while developing brand awareness, generating inbound traffic and encouraging product adoption. On a daily basis, Klaver manages all social channels of CP, writes blogs, creates infographics and maintains a daily news page regarding the most relevant logistics and supply chain topics.

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