Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Posted by on in Freight Bids
  • Font size: Larger Smaller
  • Hits: 1434
  • Print

Freight Bid Tip # 8. Perform a Market Test with New Carriers


As the freight bid process comes to conclusion, there is an urgency to award the business so the shipper can begin enjoying  the cost savings that were achieved. While this is understandable, it is important to keep several things in mind.

First, if business is being awarded to new carriers, they need to come up a learning curve before they are as experienced as the incumbents. Second, some new carriers may have over committed during the bid process and are not able to perform at the expected level. For example, they may only serve certain lanes on particular days of the week or they may not have enough head haul or back haul traffic to bring their equipment back as quickly as expected.

Sometimes the shipper is at fault by not identifying the full scope of their requirements during the bid process. The company may have forgotten to disclose or incorrectly assumed that every carrier can make an 8:00 AM pickup or delivery every day. When informed, the carrier may determine that the best they can do, with their network, is effect a 10:00 AM or 11:00 AM delivery but no earlier. This may not be satisfactory for the shipper since they may need the freight early in the morning so they can dispatch their delivery vans at 8:00 AM to provide the service demanded by their clients.

We suggest that you test market at least some of the new carriers while keeping the existing carriers in place on those blocks of business. In other words, share the freight until such time that the new carriers have demonstrated that they can meet the service requirements. Guide the new carriers through the transition in order to increase their odds of success. Remember that this will create a win/win situation. This is also a good test of the professionalism of your incumbents.

While this may appear to slow down the process, it may save the shipper a lot of grief and lost savings (if there is a need to switch back to an incumbent). If a new carrier cannot perform, a shipper can protect his integrity of the company's supply chain by taking this important step.


To stay up to date on Best Practices in Freight Management, follow me on Twitter @DanGoodwill, join the Freight Management Best Practices group on LinkedIn and subscribe to Dan’s Transportation Newspaper (



  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Monday, 21 August 2017

Most Recent Posts


Tag Cloud

freight payment Horizontal Supply Chain Collaboration truck drivers CN shipping Carriers Sales Crude Oil by Rail Colilers International Distribution IANA driver freight transportation in 2011 UP Dedicated Contract Carriage Freight Recession Driver Shortage APL Transloading Global Transportation Hub CN Rail Stephen Harper Trade Vision US Housing Market CSX economy Crisis management freight forwarders Right Shoring Rail robotics coaching freight audit Omni Channel Celadon Global experience Climate Change Freight Matching Tracy Matura Keystone Pipeline last mile delivery Adrian Gonzalez capacity shortages freight payment freight audit NAFTA JB Hunt Dedicated Trucking e-commerce Canadian freight market Microsoft Spanx Freight Carriers Association of Canada freight RFP Business Transformation Strategy routing guide TMS Conway consumer centric Retail NS Transportation Truckload bulk shipping buying trucking companies pipelines CITA Shipper Pulse Survey derailments truck driver Canadian truckers intermodal Business Strategy Freight transportation audit trade FCA Swift Outsourcing Sales Emergent Strategy Warehousing fuel surcharge Toronto freight transportation Politics Rotman School of Business US Auto Sales 2013 Economic Forecast Bobby Harris Ferromex US Election 360ideaspace Transcom Fleet Leasing driver shortages Load Boards Deferred Packaging broker bonds Doug Nix Canada marketing Job satisfaction Training Freight Rates Social Media in Transportation FMCSA dynamic pricing BNSF 3PL 2014 freight volumes RFP carrier conference Accessorial Charges FCPC Reshoring University of Tennessee freight transportation conference trucking company acquisitions Surety bond small business Freight Capacity Amazon Yield Improvement Hudsons Bay Company Associates NMFC Infrastructure 3PLTL shipper-carrier collaboration Driving for Profit Canadian economy professional drivers financial management economic forecasts for 2012 CRM Packaging autonomous vehicles ShipMax Social Media CSA Donald Trump Werner automation Transplace TMP Worldwide MBA Scott Monty customer engagement MPG Training New Hires Muhammad Ali LinkedIn FuelQuest broker security Masters in Logistics Software Advice Twitter Entrepreneur Facebook Broker hiring process Transport Capital Partners (TCP) 2012 Transportation Business Strategies. Jugaad Freight contracts freight agreements Trucking CP Rail freight costs Retail transportation Trump Map-21 Railway Association of Canada USA Truck Search engine optimization drones solutions provider home delibery the future of transportation peak season Canada-U.S. trade agreement YRC Consulting Career Advice tanker cars freight broker Dan Goodwill FMS ProMiles US Manufacturing employee termination Success Fire Phone cheap oil Management 2015 Economic Forecast capacity shortage Canada U.S. trade shipper-carrier contracts $75000 bond business start-up Regina President Obama Grocery Wal-Mart Life Lessons Education rail safety Cleveland Cavaliers Inbound Transportation LCV's driverless 2014 freight forecast shipping wine home delivery Finance and Transportation online shopping 2014 economic forecast CSA scores Harper Davos speech network optimization mentoring David Tuttle Loblaw Blogging energy efficiency freight bid Sales Management Business skills Sales Training EBOR New York Times Derek Singleton Failure Freight Management Doug Davis transportation news Comey NCC Freight Shuttle System selling trucking companies Load broker Transportation Buying Trends Survey freight rate increases Transportation service shipper-carrier roundtable TransForce BlueGrace Logistics Canada's global strategy LTL Schneider Logistics Otto Success failure entrepreneur Whole Foods KCS freight cost savings Leadership Shipper future of freight industry Canadian Transportation & Logistics US Economy transportation newspaper Rate per Mile dimensional pricing

Blog Archives