RFP

New RFP landscape: Building strong contracts in 2022

A truck rolls down the highway.

Shippers have long relied on Excel spreadsheets and emails to handle their freight procurement processes. When pandemic-fueled headwinds pushed historic amounts of freight into the spot market, however, many shippers found themselves running an unmanageable amount of seasonal bids to compensate for annual contract failures. 

From there, the traditional Excel spreadsheet and email system started to fall apart. 

“If you have 20 or 30 carriers, you don’t really need a robust system to run bids. You...

https://www.freightwaves.com/news/new-rfp-landscape-building-strong-contracts-in-2022

Shorter RFPs gain ground as market softens

A white semi-truck is traveling down a road with a blue sky in the background.

After years of soaring rates and strained capacity, shippers have been buoyed by a softening market over the past few months. As capacity loosens up and spot rates fall, shippers and carriers alike are taking a look at their contracts. While carriers are hoping to lock in new annual rates before they dip even lower, shippers may be interested in evaluating shorter-term options that allow them to take advantage of future market shifts. 

“For the first time in more than 3 years, the market is more...

https://www.freightwaves.com/news/shorter-rfps-gain-ground-as-market-softens

Summer holiday surge provides perfect use case for shorter RFPs

Every year around this time, shippers start seeing increased demand for all the quintessential summer fun foods as folks stock up on hot dogs, chips and beer for their July 4 barbecues. This year, American consumers are expected to spend $7.7 billion – a number that has climbed over $1 billion since 2019 – on food items leading up to the holiday, according to the National Retail Federation. 

This year’s holiday spending estimate shakes out to roughly $84 per person across the country, and this...

https://www.freightwaves.com/news/summer-holiday-surge-provides-perfect-use-case-for-shorter-rfps

Transfix rolls out beta program for next-gen sourcing optimization tool to solve RFP woes

Transfix demoing at the Future of the Supply Chain conference

The logistics industry continues to adjust to shifting consumer demands and struggle with pandemic-related headwinds, including general market volatility. These challenges have pushed freight procurement into the spotlight over the past couple years. Shippers are beginning to realize that their tried and true RFP methods will no longer keep them competitive in a changing market, pushing them to consider new, higher-tech options. 

Transfix announced its newest offering – a next-gen sourcing...

https://www.freightwaves.com/news/transfix-rolls-out-beta-program-for-next-gen-sourcing-optimization-tool-to-solve-rfp-woes

Identifying how and when to build RFPs all year long

As more shippers move away from annual contracts in favor of more frequent bid processes, knowing exactly when and how to build RFPs throughout the year can be a challenge. Most shippers are used to executing one bid process per year, and learning how to take advantage of shorter contracts requires practice and a good partner.

No matter how long the contract term is, building the most effective RFPs possible requires self-awareness, attention to detail, industry insights, and a willingness to...

https://www.freightwaves.com/news/identifying-how-and-when-to-build-rfps-all-year-long

Why shorter bid processes will soon be the norm

While annual RFPs are still considered an industry standard, shippers are becoming less enthralled with these yearlong commitments. Volatile freight markets — like those seen since the beginning of the coronavirus pandemic — highlight the risks of long contracts. At the same time, high-tech solutions designed to make the bid process cheaper, easier and quicker are entering the market. 

The freight market has proved incredibly unstable over the past two years, with capacity constraints driving...

https://www.freightwaves.com/news/why-shorter-bid-processes-will-soon-be-the-norm

Produce season pushes shippers to reevaluate rates, contracts

Temperatures are rising steadily throughout the Southeast, and that can only mean one thing: produce season. As farmers prepare for harvest, shippers should ready themselves for the seasonal rate increases and capacity shortages that accompany fresh fruits and veggies each year.. This year that means preparing for prices to continue climbing and continued strained capacity. 

“Generally, we will notice capacity tightening as we see seasonal, higher-paying loads increase. We usually recognize this...

https://www.freightwaves.com/news/produce-season-pushes-shippers-to-reevaluate-rates-contracts

Contract rates: What kind of RFP makes sense in 2022

Raging market instability over the past couple of years has put pressure on shippers like never before. Companies have been faced with severely strained capacity, record high rates and perpetual port backups. These headwinds have made it difficult for shippers to navigate relationships with their carrier partners while weighing the importance of their own bottom lines against ultimate end consumer satisfaction ratings. 

As shippers have worked to navigate this difficult landscape, many are...

https://www.freightwaves.com/news/contract-rates-what-kind-of-rfp-makes-sense-in-2022

Old-school RFP processes are keeping shippers in the past

Historically, the RFP process has been laborious, expensive and exclusive. Shippers have aimed to work with as few carriers and brokers as possible while locking in rates on an annual basis. Over the past couple of years, market shifts and capacity constraints have illuminated the flaws in this unsustainable process. 

“For many years, if you talked to shippers, their whole goal was to limit the amount of carriers that had access to them. If a shipper could use one carrier for everything, they...

https://www.freightwaves.com/news/old-school-rfp-processes-are-keeping-shippers-in-the-past

Check Call: Another RFP, woo

Episodes of Check Call the podcast come out every Tuesday at 12:30 p.m. EST on FreightWavesTV.

Want to be on the show?

Reply to this email with your biggest supply chain headaches for a chance to join me on the Check Call podcast.

Hot Take

Image: makeameme.org

One thing everyone loves to hate but we can never get rid of is the good ole request for proposal. Who doesn’t love sifting through endless rows of data, wondering where to even begin to understand what is wanted as a response? There can be...

https://www.freightwaves.com/news/check-call-another-rfp-woo

+ More