General Procurement Solution vs Freight Procurement Solution

07.06.2020

 

More and more companies realize that using excel for tendering is coming to an end and that they need a solution for running tenders and getting the most out of them.  So far, so good.

At many companies, there is already a general procurement solution in place. The obvious idea is to just use this very same solution also for tendering. But wait, does it support you to do a great job in freight procurement?

Understandably, it’s not entirely clear at first glance why you’d need a specific tool for freight procurement. After all, it’s just about comparing prices and quantities, right?

Well, allow us to explain why we think you need to consider a specific freight procurement solution for your upcoming freight tenders.

Quality evaluation
With a general procurement solution, you can easily calculate the spend based on price and quantity no doubt about this. But, what if you would like to consider also qualitative aspects of tendering such as frequencies, lead times, or capacities? You will rapidly notice that the general solution is simply not good enough for your needs.

Detailed evaluation on shipment level

In freight, you rarely buy a fixed amount of singlesized shipments. Therefore, you need a solution that is suitable for any transport mode and which also allows you to import your shipment profile as a basis for evaluation. Having the complete cost analysis come out as an exact representation of your unique shipment profile, down to a single shipment level, will make a significant difference in outcome as compared to using average shipments or assumptions.

Analysis of freight specific capabilities

In the evaluation process, it’s essential to be able to run different scenarios to deep dive into all the options and make the best pick for you. You need to be able to break down results based on geography and weight brackets, employ weight break optimization, or employ market benchmarks to ensure competitive solutions. These are just a few examples of where you will usually see limitations in generic solutions.

End to end procurement solution

A freight tender is not merely collecting prices and awarding business. Before starting the tender, can the general procurement system support you with collecting the data for its preparation? Will you be able to integrate your established rates to your TMS system for immediate bookings, statistics, invoice checks, etc.? Most likely not.

These are a few reasons why you should opt for a freight tendering solution – we at TenderEasy will gladly show you how our software supports your tendering process. The next demo is just a click away – reach out to us!

 

Written by
Annukka Jäger

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