Freight Bid Tip # 10. Implement Robust Compliance Tracking Processes

Freight Bid Tip # 10. Implement Robust Compliance Tracking Processes

9 years ago

Some shippers operate under the misconception that once the bid awards have been made, the RFP process has been completed. This is not the case. There is another critical step that can “make or break” the bid process. It is absolutely essential, particularly in multi-plant companies, to have a process in place, immediately upon implementation, […]

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

9 years ago

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 […]

Freight Bid Tip # 7. Establish Backup Carriers for Most Blocks of Business

9 years ago

We live in an ever-changing world. Trucking companies come and go. They are being bought, sold, merged, downsized and resized every day. Under new management, a company may flourish or deteriorate. In this era of driver shortages, carriers are being very deliberate about how they allocate their capacity. As they focus on yield management, this […]

Freight Bid Tip # 6 – Meet Face-to-Face with Potential Carriers and Perform Due Diligence

9 years ago

We live in an era of impersonal communication. E mails, text messages, tweets and GoToMeetings have replaced face to face communication in many instances. The decision to award millions or tens of millions of dollars in freight transportation to a set of carriers is a very important one. You don’t want to entrust your company’s […]

Freight Bid Tip # 5. Conduct Multiple Rounds of Bidding

9 years ago

The objective of a freight bid project is to secure a range of carriers and logistics service providers that are best able to supply a shipper with the service (e.g. transit times, customer service, shipment tracking information), capacity (e.g. drivers, tractors, trailers, straight trucks) and pricing to ensure the company has a competitive advantage […]

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Freight Bid Tip # 4. Cast a Wide Net in Selecting Carriers and Freight Management Companies

9 years ago

There are thousands of freight carriers, load brokers and logistics service providers throughout North America. One of the important elements of an effective freight bid is to seek out those carriers that can provide the best combination of service, capacity and rates to meet the unique needs of your business. Over the years, we […]

Freight Bid Tip # 3. Obtain quality data on the company’s shipment activity

9 years ago

In order to conduct a freight RFP exercise, shippers need to secure historical data on their traffic volumes by type of service (e.g. small parcel, LTL, over the road truckload, intermodal etc.) and freight costs by lane (e.g. origin – destination pair). The data serves two purposes. First, by capturing and sharing shipment activity […]

Freight Bid Tip # 2. – Obtain Accurate Product Descriptions and Density Calculations

9 years ago

In an RFP, the carriers are being asked to bid on specific types of freight moving on specific traffic lanes. The rates they quote are based on the freight descriptions that you provide. It is essential that all aspects of the freight be documented in sufficient detail so as to ensure the quotes received are […]

Freight Bid Tip #1. – Obtain Buy-in and Participation from the Operating Divisions

9 years ago

Over the past eleven years, my colleagues and I have worked on a variety of successful freight RFP or freight bid projects. During that time, we have observed a number of factors that are the keys to success. This is the first in a series of blogs that will provide tips on how to run […]

Shippers – “You don’t get what you deserve, you get what you negotiate”

10 years ago

This year, major freight carriers have been seeking general rate (GRI) increases, higher fuel surcharges (at a time when energy prices are at their lowest levels in years), accessorial charge rate hikes and the implementation of dimensional LTL pricing. In other words, shippers, particularly in the small parcel and LTL sectors are facing a barrage […]