Freight tendering is an important sub-area of transport logistics, enabling companies to transport their goods efficiently and cost-effectively. However, the tendering process is often complex and prone to errors. Learn about the 5 key mistakes in freight tendering and how to avoid them.
1. Insufficient Preparation and Planning
Thorough preparation and planning are crucial for the success of a freight tender. However, this step is often neglected, leading to inaccurate requirements and unrealistic expectations. To improve this, you should:
- Accurately analyze your needs by determining the number of shipments, transport volume, and required services.
- Stay informed about market developments and trends in transport logistics.
- Secure the necessary internal and external resources for the tender early.
- Create realistic timelines for the execution of the tender and the implementation of the chosen solutions.
2. Unclear or Incomplete Requirements
Unclear or incomplete requirements can lead to transport service providers offering unsuitable or inefficient solutions. To avoid such mistakes, you should:
- Create a detailed service description that includes all relevant information about transport needs, desired services, and technical requirements.
- Define clear and measurable criteria for evaluating bids, for example, regarding price, delivery time, quality, and sustainability.
- Ensure regular communication with potential service providers to clarify questions and avoid misunderstandings.
3. Lack of Market Knowledge
A lack of market knowledge can lead to companies not negotiating appropriate prices and conditions for their freight tender. Therefore, it is important that you:
- Regularly monitor market prices and developments in the transport sector, for example, through market studies, benchmarking, or exchange with other companies.
- Stay informed about the economic, political, and legal frameworks in the relevant countries and regions.
- Analyze the strengths and weaknesses of potential service providers to gain a better understanding of their performance and pricing.
4. Lack of Transparency and Communication
A transparent and open communication process is also crucial for the success of a freight tender. Without transparency and sufficient communication, important information can be overlooked or misinterpreted. To avoid this, you should:
- Set up a central platform or a unified communication system where all relevant information and documents can be stored and exchanged.
- Introduce regular status meetings and reports to monitor the progress of the tender and keep all stakeholders informed.
- Foster an open feedback culture where questions, concerns, and suggestions for improvement can be openly discussed and addressed.
- Actively manage communication with potential service providers by asking questions, addressing concerns, and providing constructive feedback.
5. Incorrect Selection of Transport Service Provider
The selection of the right transport service provider is key for a successful freight tender. However, a common mistake is to select the provider solely based on price, without considering other important factors. Here’s what you should do:
- Conduct a comprehensive evaluation of the bids that considers all relevant criteria, such as delivery times, service quality, technical competence, and sustainability aspects.
- Obtain references and testimonials from other customers to verify the performance and reliability of potential service providers.
- Conduct trial runs or test projects to test the collaboration with the selected service providers in practice.
- Strive for long-term partnerships with service providers to enable continuous improvement of services and conditions.
Conclusion
Success in Freight Tendering with the Right Tips and Solutions
Freight tenders are a complex task in transport management. Errors in this process lead to avoidable costs and faulty shipments. Follow the tips provided here to ensure the success of your freight tenders and sustainably optimize your transport costs.
And if you wish to further professionalize your freight tenders, Solvares Logistics supports you with our decades of experience. As experts in transport logistics and pioneers in the field of logistics software, we possess both suitable software solutions and the knowledge required for successful freight tenders.