When was the last time your company put out a request for proposal (RFP) to source less-than-truckload (LTL) shipping rates? If it was more than a year ago, you’re advised to do it again because, chances are, you’re leaving savings on the table.
You might be saying, “But I’m happy with my LTL carrier.” That’s great: finding a reliable carrier that you trust is undoubtedly important. But ask yourself this: have they come to you with a rate increase in the last year? And if so, are you sure you couldn’t have found a more competitive rate from a comparable carrier?
Even if you ultimately decide to stick with your current carrier, conducting RFPs on a regular basis is a valuable exercise, enabling you to make more informed decisions concerning your LTL shipping needs. It also allows you to wield more power going into negotiations. If your preferred carrier values your business, they may be inclined to match the lower rate you’ve found elsewhere—but only if you present them with the data.
So, how can your company conduct successful LTL RFPs on a regular basis—without depleting your resources?
Without the time, tools, and expertise, conducting RFPs can be a slog.
While some organizations have a dedicated sourcing team at their disposal, many, unfortunately, do not. This can make it difficult to conduct LTL RFPs on a biennial basis, let alone an annual one.
Even when shippers do have someone on staff who handles their RFPs, organizing and managing the process is a gargantuan task. And without the right modeling tools and analytical expertise, making sense of the data generated can be incredibly challenging. An Excel spreadsheet isn’t enough, especially when every carrier is submitting RFPs in a different format and working from different tariffs and fuel surcharges. How can you be sure you’re making the right decisions when you can’t compare apples to apples?
Outsourcing your LTL RFPs can be a cost-effective solution.
At CTSI-Global, we manage the RFP process from end to end for many of our clients—helping them realize real savings as a result.
After 60 years in the logistics business, we’re deeply familiar with all the ins and outs of the process, allowing us to complete the RFP cycle in a timely fashion (typically, no more than 6-8 weeks). We set up and send out the RFP on behalf of the client, providing a complete and accurate data set, pictures of the freight, and a specific tariff and fuel surcharge that all carriers must base their pricing on. This allows us to gather clean and consistent RFPs for a more effective comparison.
We then perform a thorough analysis, using our proprietary modeling and rating tools to provide meaningful insights—like least-cost option per lane and previous and comparative spend—that drive better decision-making.
Secure better LTL shipping rates—year after year
Compared to the hassle of managing this process in house, not to mention the expense of purchasing the necessary tools, outsourcing the LTL RFP process tends to be the most cost- and time-effective option by far. And with an expected rate of return of 4-8%, the savings can be significant.
Don’t let your LTL shipping rates creep up. Offset rising costs and unlock real savings by contacting us today.