Logistics operations involve an extensive spread of functions - sourcing raw materials, manufacturing goods, and finally delivering them to the buyer - often becoming a complex process involving several stakeholders. However, freight movement can become effortless by employing several streamlined processes. Managing freight bids online is one such approach.
Traditional Approach to Freight Bidding
The bid for freight process traditionally involves yearly contracts with estimates of the total freight volume and the mutually settled rate. Breach of contract invites consequences for both parties. Mostly, business owners cannot avail of better deals as they are obligated to the existing contractors. Moreover, the additional risk of carriers backing out in times of increased demand is a bother.
Under such circumstances, mini-bids cover the routes denied by contractors. To enable the process, shippers use a request for proposal (RFP) to multiple carriers from a specified group to address the demand surge. Many shippers take on the challenge of transport bidding themselves, making it an economical solution but it’s a time-consuming task. Alternatively, 3PL companies act as negotiators between the shippers and carriers.
Freight brokers act as a bridge between these two parties, actively searching for the most favorable deals to secure sufficient spots for the shipper and the most favorable freight rates for the carrier. Each successful logistics bidding leads to their commission, based on the total value of the shipment.
Impact of Technology on Freight Auction
With the evolving bidding process, RFPs are conducted half-yearly or quarterly. Technology has enabled carriers and brokers to manage bid responses optimally, throughout the year. Cloud-based SaaS logistics bidding platforms simplify the entire process and an overview of the benefits includes:
- Real-time visibility into the carrier capacity, costs, and other relevant details
- Accessibility to data intelligence, both real-time and historical, facilitates faster decisions
- Improved communication channels to find mutually beneficial solutions swiftly
Transforming the Digital Freight Marketplace with Cloud-Based Freight Bidding Software
The modern digital freight marketplace offers a dual-sided dynamic mechanism that maintains equilibrium and fairness for all stakeholders.
Freight to Carrier Smart Matching
Transport bidding sites in India eliminate the need for manual intervention, enabling shippers to automatically connect to a suitable match based on their specific requirements. The swift mechanism saves time, otherwise wasted on manual RFP processing. Carriers get the opportunity to sell their empty miles at the last minute, and the shippers can access competitive offers in the market.
Dynamic Auction Pricing
Spot auctions take up most of the time in the entire bidding cycle due to the absence of a predefined contract. However, this is a favored solution in case of priority shipments and the availability of surplus shipment space along the shippers’ preferred route or when the annual shipment volume is low altogether. An algorithm-based approach evaluates such variable factors rapidly and accepts or rejects accordingly.
Contract Management
AI can handle the contracts too. Shippers mostly prefer to secure their spots assuredly by optimally merging contracts with spot auctions. In frequently used routes, contracting lanes are more beneficial than searching for spots.
Strategic Freight Sourcing and Reverse Bidding
Machine learning (ML) streamlines the work of the freight-sourcing teams by assembling all carriers-based information at ready disposal for swift decisions. Automated pricing lets carriers optimize their reverse bidding strategies as well, with the prices going down in a process reversal.
Logistics Optimization & Market Monitoring
The modern digital marketplace arms freight forwarders and stakeholders with tools to deal with the dynamically changing rates, ensuring fairness in pricing. An automated system updates itself with real-time market rates and other variables so that buyers and sellers do not have to monitor the market conditions themselves.
Why Should You manage freight bidding with Fleetx?
With a thorough understanding of the logistics landscape in India and solving the various issues associated, the spot auction platform from Fleetx drives cost efficiency and provides convenience through features that provide:
WhatsApp-Based, On-the-Go Spot Bidding
Leverage the convenience of WhatsApp for spot bidding. Submit and monitor bids through the app and participate in auctions anytime-anywhere.
Real-Time Updates
Stay informed with instant notifications on transporter bids, allowing quick, informed decisions for seamless auction management.
Benefits of the Fleetx Freight Procurement Tool
If you are still unsure about stepping into the automated bidding landscape, the following benefits might ease your decisions:
Lower Labor Costs
Automation saves staff time and resources by eliminating the manual need for sending out public tenders, managing multiple carrier calls and emails, organizing paperwork, or rate negotiations. The WhatsApp-based quick update feature has gained significant popularity amongst users.
Insightful Decision-Making
Data-driven quote options let shippers compare bid details analytically to identify the best freight option. Visibility into real-time pricing facilitates strategic bid choices.
Flexibility & Command
Each business can tailor the solution as per their freight requirement, providing flexible automation settings and operational norms. The Fleetx solution tracks and manages vendor-wise and route-wise profitability through the market/hired vehicle module, automates the billing process, sends auction and bid updates through WhatsApp, and more.
Ensure Hassle-Free Freight Bidding, Every Time
Based on an organization’s specific strategies, correlating the industry segment, carrier preference, and purchasing strategies, automated freight bidding can be a complex configuration. Selecting an experienced software provider is key to success.
