Inbound Logistics | January 2026

BETTING ON THE RIGHT TRANSPORTATION PROVIDER

KNOW YOUR NEEDS Choosing the right partner

Against that backdrop, the process of selecting transportation providers takes on added weight. “Poor carrier selection or weak carrier management can erode margins, damage customer experience, reduce exibility and scale, and limit the ability to adapt in a rapidly evolving marketplace,” notes Arthur Axelrad, CEO and co-founder of Dispatch Science, a logistics and delivery software platform. “In a world where speed, visibility, and consumer expectations are accelerating, the choice of transportation partner becomes a competitive differentiator,” he says. “A strong carrier ecosystem backed by modern tech becomes a catalyst for growth, margin improvement, and customer loyalty.” With those high stakes in mind, here are six key considerations when selecting a transportation provider:

starts with taking a good look at your business. “You can’t select the right partner until you’re honest about what your organization values,” says Erin Mitchell, COO of YMX Logistics. “Spend time understanding your volume patterns, service requirements, exibility thresholds, technology and visibility requirements, and type of partnership you are looking for,” she advises. “Map your network, including seasonal peaks, lane variability and dwell times. “Dene what ‘good’ looks like: on-time percentage, communication cadence, safety record, and sustainability metrics,” Mitchell adds. “Then decide which of those are non-negotiable. That self-assessment prevents mismatched expectations later.” It’s also key for shippers to take a step back and dene their requirements. “Shippers often approach us with an RFP that is all over the place and doesn’t clearly communicate what they’re looking for in a provider,” Martinez says. In particular, he points out that shippers sometimes go out to the market asking for a price and not understanding all the components that go into it. “Shippers have to understand what they are shipping, where it’s shipping from, and all the different services they need—is it warehousing and inventory management, or is it just last-mile delivery?” Martinez says. “They need to know how all those components play as a whole, and if they are sourcing them separately or together.” It is vital for shippers to clearly assess and convey their needs to providers. “Carriers need to understand your operations and your network, warts and all, if they are going to be effective partners,” Hane adds. If shippers are not forthright, the relationship likely will turn sour, the carrier might start to reject tender, and there will be a risk of service failure. “Be open with potential providers instead of trying to pull one over on

Technology that provides visibility data and integrates seamlessly with shipper solutions is now a must-have when choosing a potential transportation partner. Route planning and optimization tools, like this one from Dispact Science, provide real-time tracking and alerts.

BE FLEXIBLE IN A CHANGED LANDSCAPE

One of the biggest recent

shifts in the transportation provider selection process is fewer shippers using annual bids to select carriers. “The process has become more uid and exible,” says Mike Hane, director of product marketing, TMS, for Descartes, which provides a logistics technology platform. “For shippers, that makes selecting providers an ongoing process marked by constant consideration of their carrier portfolio and what’s working or not working. “Many larger companies still do annual bids, but it’s for their high-volume lanes,” Hane says. “There’s less of that and more mini-bids every few months. That means shippers constantly need to look at their providers and network of carriers, talk with their peers and ask, ‘Who could I bring into my network? What parts of my network aren’t working as well as they used to?’ “Data is more easily available now than it used to be, and shippers need to be out there constantly evaluating their network,” he adds.

them,” Hane says. “There’s good freight and bad freight, and every company will have its own kind of good and bad freight. Be honest about it.”

LOOK BEYOND JUST PRICE

Shippers can become xated on price, but that can lead to a range of problems. While it’s tempting to optimize solely on cost, the hidden costs of unreliable carriers often outweigh the savings. “The balancing act is critical; treat cost and service quality as dual pillars, and require carriers to present both,” Axelrad says. “For example, a slightly higher-cost provider that gives you near- real-time visibility, fewer exceptions, and stronger exibility may well deliver better total value. A modern TMS supports this by giving you the underlying data to compare not just ‘rate’ but total landed cost including risk, exceptions, and variability.”

136 Inbound Logistics • January 2026