The success of your RFQ, in a nutshell, will be measured in the result. Which, of course, is dependent on the quality of the input provided by your logistics service providers.
In order to obtain the best possible results for your tender, we have experienced the following to be some of the most impacting challenges for the logistics providers, hindering them from being able to provide their best possible bid for your business:
It is holiday season, but you still want your tender back within three days? This will likely result in a decline in participation, especially when there are a lot of different lanes, products and special requirements involved. If you want the suppliers to provide you with the best possible price and service for your needs, instead of simply offering a standard solution, you need to provide the right conditions for that to happen. Therefore, we recommend providing ample time (normally ~3 weeks or so) to respond to your bid.
Format of the sheet:
Is it not clear what should be included in the rates or do you use an uncommon rate structure? A lot of times, complex rate structures are set up without a clear purpose in mind, making them difficult to fill out but without providing relevant data to your business. Make it easy for the suppliers to fill out your bid sheet, keep it simple and also provide clear instructions on what and how to fill out the sheet. Do not make the bid sheet more complex than the analysis and decision criteria require.
Too often, the process from the supplier point of view consists of putting in a lot of effort in a tender and then geting no response, or, at most, at the end, a “you have been too expensive overall”. By providing detailed feedback after each bid round, the suppliers know how to improve their bid. After all, your RFQ’s result will benefit from the suppliers knowing precisely how their bid needs to improve in order to be competitive.
These are just a few of the items to consider. Sounds exhausting and like a lot of work?
Then we have good news for you. Using a digital solution for your freight tender with build in support for color-coded feedback and available checklists - it will improve the outcome of your tender.
Are you curious? Contact us for more details!