Manage a successful Freight RFQ - Part 4

Part 4 – Award and implementation


In this blog we will go the final steps in a freight RFQ, awarding of business to the selected Logistic Service Provider's (LSP's), and start using the new transport arrangements. 

In previous posts, we’ve discussed:
Part 1 - RFQ preparations
Part 2 - Setting up a freight RFQ
Part 3 - Analysing and feedback

Awarding LSP's
Awarding of business is often done during or after face-to-face meetings and negotiation with your LSP's. Based on your strategy, one or multiple providers are selected and awarded business. The criteria why an LSP is selected can be many, here are the top criteria's:

  • Competitive prices
  • Attractive lead times
  • Low emissions
  • Quality of service


Large volume shippers need to secure their high volume transports and often award multiple LSP's, with main and and backup providers being awarded. You don't want to put all eggs in one basket, a warning example is the Hanjin insolvency autumn 2016. Mitigate risks should always be considered awarding your providers.

Share awarded lanes
Communicating the awarded business can be made electronically via online tendering and rate management platforms like TenderEasy. Providers simply login to see where they are awarded, and they can download and review their rate cards. The same online rate card can easily be added as the printed and/or digital appendix to the agreement.

The rate card (done correctly) will also contain most of the vital informations needed to complete the SOP with each carrier. It is essential that the rate card is aligned with the naming convention of your TMS system as well as containing all agreed service components. This will ensure you don't lose valuable time in the important process to implement your new transport solution. You will only start to save the money once the new optimised solutions is fully implemented!

You can also register for our webinar where we in 30 minutes go through the keys to a successful freight RFQ.

For more information, please contact me at johan@tendereasy.com

About the author

Johan Vagerstam
Johan is CEO and Co-founder of TenderEasy. He works along with colleagues, partners and clients to transform the way organisations manage their freight procurement processes. You can follow him on twitter and on Linkedin.

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