This post is part of a series on best practices for freight RFQ s from Ticontract Managing Director Thomas Einsiedler. For additional tips, please click the “Transportation procurement tips” tag in the right sidebar.
There are always different objectives for running a freight RFQ, but a number of points should be observed in order to maximize success. I would like to share some hints and tips for the most important steps of a successful bid invitation from many years of experience in advising and assisting our customers in the most diverse transportation procurement projects.
Define clear targets for the freight RFQ
First of all, it is of fundamental importance to define clear objectives to be achieved with the logistics bid invitation. These goals can be very different. You might want to find new transportation partners, or the procurement or distribution scenario may have changed, resulting in new possibilities for transportation design.
Benchmark rates and optimize freight costs
Benchmarking your accepted rates against the market is often advised, especially if current contracts with existing service providers are coming to an end. Perhaps you also have the explicit goal of optimizing freight costs. If the goal is to achieve maximum savings, you should allow ample time for the RFQ process.
Bundle container freight services for maximum cost savings
Although each round can be time consuming, exploring different intermodal scenarios through bundling can show the most cost-effective mix for your lanes. Inviting portfolio service providers to the bid and then making small adjustments to the transport bundling is usually less time intensive since all parties are already aware of the required service. Objective and timing are therefore closely linked.
If you would like to explore the topic of freight RFQs, please download our free whitepaper, “Maximum Success with Freight Requests for Quotations,” which includes some helpful checklists.