Freight tender Tip #2 - Understand changing transport flows



In the Previous blog post, we discussed the importance of knowing your historical shipment profile in order to make a sound judgment on what supplier to choose in a freight tender.
Depending on the nature of your business, it could be just as important to lift your gaze and see the big picture of your business and your path ahead. Imagine if your tendering tool can help you with this.

While looking back on historic transport flows is often a very good indicator when building a prognosis, there are many reasons not to rely solely on the idea that your business will continue its current trajectory. Of course, you always hope that your business will take off, but it may be just as important to know where to expect decreases in volume.

In the supply chain business, there are a few indicators that you need to keep in mind when setting up a freight tender to make sure that it’s in line with reality not just now, but in 6 months and a year and further down the road as well. Any of the following examples would be grounds for reevaluating your setup or even going to tender earlier than planned.

  • An anticipated growth in business
  • New market introductions
  • Generally unpredictable/uneven market
  • Change in shipped volumes or product mixes
  • Changed performance expectations in the market
  • Changing structures of your shipments

There are obviously a multitude of factors that can influence your supply chain. In fact, there are few structural changes that doesn’t affect the supply chain. So, if you don’t make sure that the most important ones are known and accounted for, then you obviously risk either getting stuck with not enough capacity or with way too much capacity, both of which are situations that will cost you and/or your customers unnecessary money and trouble.

None of this is rocket surgery, but it is still a foundational part of a successful freight tender that is often overlooked. Again, a tender evaluation must be based in reality in order to be useful at all. And by simply basing your calculations on historical volumes and adding relevant projections, you’ll be outperforming the majority of the freight buyers out there.