According to Gartner’s “Future of Supply Chain Survey” in 2021, 60% of CSCOs are expected to make faster, more accurate, and consistent decisions in real-time. Shippers talk about transportation decisions being very critical to their business, yet they still use old, antiquated ways of transportation procurement that are cumbersome. They conduct annual events to onboard transport companies, manage LSPs on excel sheets, and coordinate and follow up with phone calls, SMS, emails and Whatsapp.
In this market, speed is crucial; else, the business is operating at a loss. They must make decisions quickly or risk increasing freight costs, inefficient service, and product unavailability.
So it all boils down to procurement!
The transportation procurement process involves all activities required for acquiring freight services from an external source, such as planning, purchasing, monitoring and reporting.
Shippers should prioritize optimizing and making the transportation procurement process more effective to help manage costs and build reliable LSP partnerships. Here are some benefits of adopting technology for transportation procurement process:
By allowing the shippers to match their demand through their contracted LSPs or through spot bidding from an untapped capacity of over 4K+ pre-vetted transport companies.
By gaining visibility into their LSPs performance like vehicle reporting TAT, fulfilment rate, standard transit time and vehicle acceptance TAT, shippers will be able to identify the most efficient LSP and build reliable partnerships to guarantee capacity availability.
By inviting more LSPs to participate in these bid events so that shippers can identify and ensure partnerships with the right transport companies, possibly reduce rates.
By providing automated matching, these solutions offer responses in minutes, offering shippers real-time rates with guaranteed vehicle acceptance.To add, shippers can share the costs of the full trip with return load optimization.
By integrating with the TMS and ERP solutions, shippers can analyze and automate processes and reduce human errors. They get an overall view into the freight procurement process from the LSPs performance, freight costs and fulfilment.
By optimizing return loads, Shippers can help reduce the environmental impact of transporting goods and eliminate the need for a second trip to collect the goods. Ultimately, it reduces empty miles, decreases congestion and speeds up total goods movement.
Learn how a leading beverage company was able to achieve 62% improvement in vehicle fulfilment TAT. Download Case Study.
B2B tech enthusiasts || Product Marketer || Loves to travel
Published on 18 Apr 2022
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