This post regarding your carrier network is part of a series on best practices for freight RFQs from Ticontract Managing Director Thomas Einsiedler. For additional tips, please click the “Transportation procurement tips” tag in the right sidebar.
Sometimes it’s useful to check to see whether your network of transportation providers and logistics practices still fit your current situation. The world of logistics has become increasingly dynamic and fast-moving in recent years as a result of the globalization and differences in the way products are now sold. That also means that your procurement and distribution processes must be analyzed and adapted more frequently.
Your carrier network might need an update
Perhaps it makes sense to re-think your process from source to customer, or vice versa. Re-think, if the current number of service providers per plant or destination state still match with your overall distribution strategy, or if there is potential for improvement.
As a first step to uncovering potential room for improvement, consider the in-depth analysis of your historical shipment data and mapping the data against constraints within your network. By applying such a framework, you may be able consider potential alternatives and propose changes going forward. If you are open to new ways of looking at things and accept some changes to carriers, lanes and volumes during an RFQ process, the subsequent allocation decisions may bring you more savings and reflect the agility within your network.