Coping with and minimising the impact of tender rejections is easy when you have a solution that leverages automation and machine learning.
In a perfect world, shippers could rely solely on their routing guide and contracted rates to best orchestrate specific shipments between modes, lanes and preferred carriers. Alas, the current state of trucking and supply chain is far from perfect and tender rejections are common, as carriers by-pass contracted rates for better opportunities elsewhere.
Shippers correctly consider rejections a result of poor contracting, tight spot freight market conditions, or both. But good buyers also embrace a healthy rejection rate as a sign of effective procurement. Too high a rate indicates there’s a discord between shipper and market, while too few rejections mean a shipper is leaving money on the table.
But how to strike that balance and keep operational burdens of rejection at a minimum? This blog covers how an automated, artificial intelligence-enabled approach to spot freight procurement can use rejection signals to reframe and adjust pricing, in real time, to help shippers get to another tender quicker and smarter. This piece also touches on the impact of tender rejections, why they are on the rise, and the power of automation and AI in spot freight procurement.