Companies that have a lot of inbound shipment are forced, sometimes, to spot bid for prospective carriers. Earlier this involved sending out bids to various carriers and then waiting for their responses. The responses were received via e-mail and the carrier who was selected was intimated via mail again. This was a slow process and a lot of time and effort was invested into this. However, Transport management software has drastically reduced the time and effort involved in spot bids.
Transport management software has an online portal through which carriers can bid, through which they can enter details of load that they are willing to deliver. As soon as a bid is provided, an email is received by the company, indicating the presence of the bid. The bids can then be reviewed by the necessary department and once the specific carrier is selected, the portal will not take up any further bids. This provides better clarity for the company as well as to prospective carriers.
Here are the advantages of using the transport management system to monitor spot bids
- Reduced time: Less amount of time spent on choosing the carrier. Since it is automated, the bids are collected all in the same place and can be reviewed efficiently. The most competitive bid can then be chosen.
- Reduced effort: Less effort is required to contact vendors and to ask them to bid.
- Preferred customers: The software also reaches out to preferred customers and gets their quotes quickly. This way the quotes that you are looking for will reach you soon.
- Archive of bids: In the event that bids need to be cross checked or if earlier rates paid need to be verified, there are archives of previous bids that are available and which can be accessed easily.
- The data that is available can be used to create trend charts to determine the latest in market pricing, rate of bidding and even cost variance.
- Carriers who chose to bid and others who declined the business can also be identified using the software. That way, those who declined previously need not be contacted later. Or, if too many carriers are declining bids then it would be time to study the causes and determine what is keeping them away. It could be that not enough time is being provided to place bids or the tender is not clear enough.
Research has found that the use of transportation management software for spot bids can reduce costs by at least 20%, which is considerable for companies with many inbound shipments.
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