Freight tender
Definition:
A freight tender is a structured procurement process in which companies tender transportation or logistics services to obtain offers from freight forwarders, carriers, or logistics service providers.
The aim is to obtain optimal conditions in terms of price, service quality, capacity and compliance through a transparent and competitive process. The process comprises the following phases:
- Preparation: Companies collect all relevant information about their transportation needs, such as shipping volumes, destinations and special requirements
- Request for Information (RFI): In this step, logistics service providers are asked to provide information about their services and capacities
- Request for Proposal (RFP): Companies ask qualified logistics service providers to submit detailed offers and logistics concepts
- Request for Quotation (RFQ): Logistics service providers provide their final price offers based on the company's specific requirements
- Evaluation and selection: The offers received are evaluated and the best provider is selected
Freight tenders help companies obtain the best prices and services and optimize their transportation processes.
Digital tendering tools & data quality
Modern freight tenders are increasingly being carried out digitally via tender and transport management systems (TMS). A clear database of transport volumes, routes, time frames, equipment requirements, safety requirements and documentation requirements is crucial so that providers can submit valid offers.
Contract & compliance aspects
In addition to awards, criteria such as service levels, security standards, sustainability requirements, certifications (e.g. SQAS, ISO) and digital capabilities are also assessed.
Sources/further links:
SAP Help Portal — Freight Explanation: Freight Tender | SAP Help Portal
McKinsey — digital procurement in logistics: Digital-procurement-For-lasting-value-go-broad-and-deep.pdf
Gartner — FreightProcurement Trends (summary page): Definition of Logistics - Gartner Information Technology Glossary
Freight tendering challenges:
Incomplete or inconsistent transport data leads to incorrect offers
If loading/unloading requirements, time frames, equipment requirements or documentation requirements are imprecisely defined, service providers cannot calculate realistic offers. This leads to renegotiations, service deviations or operational problems after the contract has been awarded.
Sources/further links:
McKinsey — Data Quality Challenges in Logistics Procurement: Digital-procurement-For-lasting-value-go-broad-and-deep.pdf
Complex communication & manual data coordination between shippers and service providers
Many tendering processes are still based on Excel sheets, emails and PDF briefings, which leads to errors, queries and time-consuming rounds of clarification.
Sources/further links:
Gartner — Modern Freight Sourcing Challenges (summary): Definition of Logistics - Gartner Information Technology Glossary
Loady's solution:
Provide clear, verified location and product requirements
Loady provides structured, audited requirements such as access rules, PPE requirements, equipment requirements, documentation requirements and cleaning standards. This data-based transparency improves the tendering basis and leads to realistic, comparable offers.
Reduction of inquiries & offer errors
Service providers receive clear and complete information on operating conditions and can therefore provide well-founded prices and service commitments, which makes tenders more efficient and reliable.
