Freight Tendering Service

Typically a freight tender takes 3 up to 4 months. This of course depends on the complexity and scope. During a transport tender you want to give the logistics service providers enough time to prepare and adjust their quotations.

Costs depend on two factors: the scope of service (full tender management vs. specific support) and the scale (number of locations, countries, and carriers involved). Our clients typically achieve transport cost savings of 10-30%, with peaks up to 40% - our record stands at nearly 50%. We can also work on a performance basis, reducing or eliminating fixed costs.

Data quality is critical for a successful freight tender. The better your shipment data, the more targeted and competitive the carrier offers you receive. We recommend sharing at least one full year of detailed data, including origin-destination pairs, dimensions, weights, and any special requirements such as desired surcharges. A well-matched shipment profile leads to sharper rates. Incomplete data forces carriers to build in price buffers.

The first step is usually to request complete shipment data directly from your carriers. However, carriers do not always have all the information needed either. For instance, if you have historically been charged based on loading meters but our analysis shows that CBM-based pricing would be more beneficial for your situation, the required data may simply not exist yet. In cases like these, we sometimes recommend running a free trial of our TMS for a few months. This allows you to build up a solid, accurate shipment data set, giving us everything we need to model the right pricing structure and deliver you optimal tender results.

This depends on your industry and supply chain. We generally advise building long-term carrier partnerships with a recommended collaboration period of 3 to 5 years. Ongoing cooperation with continuous improvement yields better results than frequent retendering. After this period, it is wise to evaluate market developments and whether your freight rates are still competitive. If there are significant changes to your shipment or carrier profile, it might be wise to anticipate your timing.