Manage a successful Freight tender RFQ - Part 4



Part 4 – Award and implementation

In this blog we will go the final steps in a freight tender 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 - Freight tender RFQ preparations
Part 2 - Setting up a freight tender RFQ
Part 3 - Analysis 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 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 log in 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 information needed to complete the SOP (Standard Operations Procedure) with each carrier. It is essential that the rate card is aligned with the naming convention of your TMS (Transport Management System, such as inet-TMS or Transwide 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 optimized solutions are fully implemented!

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

For more information, please contact me at