More and more shippers are calling for bids on their transportation and logistics contracts using an e-sourcing method, which helps save almost 19% on freight expenses while also making bidding processes 30% more efficient. Here’s how to keep the digital process going.
Replacing a manual process, such as bidding, with one-step digital processes makes a lot of sense. However, efficiency and cost savings only become significant when digitalizing entire process chains, which increases efficiency and further reduces logistics costs. Once an e-sourcing process has been established, logical next steps are rate management, automated shipment execution and electronic freight audit.
Who manages the contracts when calling for bids?
The results of complex electronic RFQs are generally very detailed, showing a number of service providers, complex relationships and multiple shipping modes. Managing and monitoring these contacts manually and guaranteeing a corresponding freight assignment task would eliminate many of the cost savings achieved by calling for bids with an e-sourcing method in the first place. That’s why it’s better to fully integrate already existing electronic data for additional processing.
Some providers of e-sourcing methods therefore offer corresponding freight rate management systems for this purpose. With a rate management system, you can manage contracts and agreements at a single centralized point within your company.
You can improve processes even more if the rate management system is also easy to use for non-logistics specialists. Sales representatives, for example, could determine the freight rates and delivery times for their customers easily without any previous knowledge.
Who assigns the freight orders?
Full performance of a professional rate management system will only be realized in combination with an automated shipment execution solution. In systems that have been adapted to each other, such as Ticontract and Transporeon, the RFQ data can be used for automated freight assignment, deriving the assignment criteria from the call for bids. As a result, the system automatically assigns freight orders based on rules, guaranteeing that the accepted quotes are observed.
Who checks the invoices?
Companies that audit freight invoices electronically in combination with electronic e-sourcing, rate management and automated order assignment gain additional advantages. They can easily check whether the right loads were invoiced under the right conditions. In addition, the freight invoices provide useful data that can be used for further optimization of the next round of RFQs.
For more information on automated logistics, check out “Optimizing the Last Mile with automated logistics” on this blog!