There are thousands of freight carriers, load brokers and logistics service providers throughout North America. One of the important elements of an effective freight bid is to seek out those carriers that can provide the best combination of service, capacity and rates to meet the unique needs of your business.
Over the years, we have observed some companies that do freight RFP exercises but limit the carriers they contact to the same group of companies year after year. My colleagues and I will hear comments like “we used that carrier in 2002 but their service was poor” or “most carriers in that lane have the same rates” or “we know the carriers that can handle our freight effectively.” It is our view that conducting an RFP is a great time to learn more about the various players in the industry.
Times change and so do carriers. New management will strengthen some carriers while weakening others. The quality level can vary significantly from carrier to carrier. There can be a wide disparity between carriers in their ability to serve certain geographic areas.
As your company embarks on a freight bid, cast a wide net. Look at your business and seek out carriers that need your freight. There are often a range of companies that can meet your needs. Note that some trucking companies carefully limit the lanes they serve and the companies with whom they will allocate their capacity. On many traffic lanes, there are small carriers that specialize in doing only a select group of things well.
Shippers need asset-based trucking companies that have equipment and will make that equipment available to their key partners. On the other hand, logistics service providers have access to a wide range of carriers. On some hard to serve lanes, an LSP can be an invaluable resource to draw on.
Keep an open mind and look for a combination of carriers - - - large, high quality trucking companies, regional and local carriers that do a few things or one thing well and logistics companies that have a stable of carriers in certain difficult to serve markets. Select the combination of transportation providers that will allow your company to best optimize its transportation network.
If you need help with your freight bid project, contact dan@dantranscon.com. We have successfully completed many freight bid projects throughout North America.