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The request-for-proposal process can be an opportunity for shippers to manage network costs and enable new business opportunities. Below are 6 tips for a successful RFP. 6 Ways Shippers Can Add Condence and Clarity to the RFP Process
F or shippers, the RFP is an opportunity to manage network costs and enable new business opportunities. Analytics bring condence and clarity to the process, ensuring you’re diversifying your network to ensure dependable capacity at predictable rates. Here are 6 best practices for a successful RFP.
6. Develop an “ideal carrier profile.” Pre-qualify the right carriers in high-priority lanes by creating an ideal carrier prole that outlines the key traits of a carrier that can support your network requirements. Include details in the selection process such as contact information, certications, eet size, safety rating, and insurance coverage. For a deeper dive,
1. Conduct a historical performance analysis. Plan ahead by looking to the past. Identify carrier performance patterns on key metrics like tender acceptance and on-time service. Isolate the lanes that need better optimization based on volume and importance to your network. This will inform the next steps for the RFP. 2. Set market benchmarks. Calibrate target rates using benchmark
based on projected cost increases from capacity shortages, as well as periods of rate relief from a softening market. 4. Get specific with seasonal volumes. An annual volume number omits vital information on surges and seasonality. Improve bid accuracy by including weekly or monthly numbers from historical analysis and forecasting. Call out abnormal volume spikes to avoid catching carriers by surprise. Provide ample details on the network’s key lanes so carriers understand expectations up front and bid intelligently to offer accurate and enduring rates. 5. Align carriers with your capacity needs. Identify transportation providers with capacity that aligns with your network’s needs. Inviting a robust, diverse set of carriers to bid on your key lanes will help deepen your capacity coverage. To that end, building and maintaining a robust list of potential asset and non-asset transportation providers will help generate a robust set of bids to evaluate.
consider implementing analytics tools that show carriers’ recent market activity to conrm they have capacity and interest in your lanes. Aiming for a Better RFP Today’s RFP process can be an opportunity to rene your network and give your team the condence to navigate any shifting market conditions. Fully taking advantage of that opportunity requires deep insights into your network’s performance compared to the broader market. Partnering with a transportation data provider with a robust data set and clear market benchmarks is essential to approaching your RFP with condence.
analysis and rate ranges that will accommodate changes in volume
throughout your annual cycle. Comparing existing incumbent rates to your market benchmarks will save time and money by carrying over incumbent lane awards that are already within acceptable range. 3. Leverage the power of forecasting. Slice rate forecasts into monthly or quarterly projections for better accuracy. Review historic contract and spot rates when evaluating rates in carrier bids to improve your position in negotiations. Use forecasts to set realistic cost expectations
—By Bryan Peace
About Bryan Peace: As associate director of product marketing, Bryan Peace leads the positioning, messaging, and go-to-market initiatives for the DAT’s shipper segment. Peace joined DAT in November 2020, bringing a decade of experience defining go-to-market strategies for cutting-edge analytics oerings. To learn more, visit dat.com/knowledgebase
Associate Director of Product Marketing DAT Freight & Analytics dat.com/knowledgebase
36 Inbound Logistics • July 2022
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