Mastering the Freight Bidding Process (Before it Masters You)
“Nothing in the world is worth having or worth doing unless it means effort, pain, difficulty…”
There’s no evidence to suggest that Theodore Roosevelt was discussing the freight bidding process when he uttered those words, but he might as well have been. When transportation industry professionals – particularly those employed by for-hire carriers, brokers and 3PLs – hear the words “effort,” “pain” and “difficulty,” chances are they’re immediately reminded of bid season.
And for good reason. As summer turns to fall and shippers intensify their freight procurement activities, transportation providers are inundated with RFPs (request for proposals) covering hundreds, and potentially thousands, of lanes. These RFPs have very little in common, with the exception that they are becoming increasingly complex as shippers identify and implement best practices aimed at optimizing transportation networks, eliminating surprises and reducing freight spend.
What does this mean to the recipients of these freight RFPs? Potentially hundreds of hours of work, no shortage of sleepless nights, and the risk that they will either leave a lot of money on the table or price themselves out of a valued business relationship. In short, bid season is fraught not only with stress, but also significant financial risk.
Four Ways to Handle Heavy Lifting
How can you handle the “heavy lifting” of freight bidding season while minimizing this risk, enhancing your ability to win new business and – most important – making sure that business translates to a stronger bottom line?
1. Understand current market rates.
You can be certain that shippers are employing advanced technology, including the latest pricing intelligence, to structure RFPs and finalize freight contracts. It’s incumbent on the transportation provider, therefore, to approach every opportunity with cold, hard facts, including current and historical costs. This can be complex, unless you are using the right tools, including extensive pricing intelligence by lane in conjunction with a comprehensive freight bidding software solution.
2. Know your competitors’ pricing strategies.
How well do you know the carriers, brokers and others who are likely bidding against you on each opportunity? You can be sure they are trying to learn as much about you as possible. Competitive research is a year-round process that becomes invaluable in the fall when a majority of freight RFPs appear in your email inbox or on your desk.
3. Develop and deploy a consistent freight bid strategy.
Before you can find, pursue and win the right new business, you need to understand which opportunities are indeed best for your fleet. This demands open dialogue and clear understanding among every team member with input to the process. In which lanes are you underperforming, and why? What lessons have you learned from past rounds? What successes can you build upon in the current freight bid season?
4. Maximize your advantages by leveraging a centralized, digital freight sourcing marketplace.
Imagine a solution that empowers carriers with access to a broader market of shipper volume to expand bidding opportunities and optimize freight hauling.
That solution now exists – Trimble Freight Marketplace – enables shippers, carriers, brokers and 3PLs to connect to a broader network to find best rates and capacity for contracted freight, while streamlining the freight bidding process.
Experience a freight procurement platform where carriers, shippers and alike connect, do business and forge meaningful partnerships. Expand your supply chain network, find reliable partners, and negotiate competitive rates for both spot tendering and tactical tendering in a transparent marketplace. Our solution combines the functionalities of a procurement solution with the dynamics of a marketplace, enabling real-time capacity sourcing and collaboration
Want More Freight Bid Management Tips? Trimble Can Help!
Freight bidding season is a time of tremendous opportunity for many transportation providers, yet, it is rapidly being transformed through the application of new technologies. Shippers are investing in solutions to try to tip the balance in their favor. Carriers, brokers and 3PLs can and should do the same – and there are now proven trucking software solutions available to help master this vital process.
Learn more freight bidding best practices- and contact us to request a demo of our freight marketplace or other sourcing platform(s).
We empower businesses with innovative transportation technology solutions that drive efficiency and growth. Partnering with Trimble empowers companies to harness expert insights and cutting-edge systems, mastering the complexities of modern transportation and logistics, cementing their status as industry leaders. With Trimble as your trusted ally, you are positioned to achieve unparalleled success.