How Digital Tools Improve the Transportation Procurement Process

The process of transportation procurement and truckload carrier operations have seen incredible advances in recent years. This is largely thanks to changes in market demand and advances in automation and digitization. Shippers, third-party team members, logistics managers, and transportation service providers use the latest transportation procurement process technology to stay connected and tap into everything the market has to offer. Everything from real-time visibility to available load capacity to freight procurement is more accessible with supply chain technology.  

TMS-Integrated, Digital Tools Help Shippers Find Carriers From Pre-Onboarded Networks

During the last few decades, the focus of transportation procurement has expanded from a broad and general practice of finding the available capacity to a focused process that uses strategic insights to better the decision-making process. Many of the current technologies, such as mobile computing, cloud-based document storage, constant connectivity, real-time tracking, and intelligent data access, have transformed the way shippers find carriers. The growing acceptance and implementation of TMS-compatible systems and digital tools and platforms are now paving the way for new applications to be utilized throughout the supply chain. All of this has helped take the transportation procurement process to new levels of innovation unlike anything seen before.

Digital Processes Reduce the Need for Annual RFPs and Help Shippers Find Capacity in All Markets

The traditional methods involved in contract RFP started to crack and fall apart in late 2020 when freight rates skyrocketed and capacity was challenging to secure. This led to a massive shift in how capacity guarantee worked and brought about a renewed interest in the spot market and short-term contracts rather than annual or bi-annual RFP bidding. Rather than spending countless hours searching job boards, manually sending communications, and playing phone or email tag, pre-onboarded networks and platforms make procurement faster and easier than ever with 1,2- and 3-month spot capacity fulfillments. All parties stand to benefit from a more intelligent and digitally-based setup when it comes to managing bids and transportation procurement processes.

Digital Resources Further Enable Mini-Bids and Better Spot Freight Management

Many shippers have turned to abundant digital resources to speed up the process and take advantage of these new opportunities in response to market changes and the growing popularity of spot freight load management and mini-bid proposals. According to Commercial Carrier Journal, freight procurement has always been a significant component of supply chain operations. Up to 90% of shipments utilize some RFP process, whether the traditional annual big contracts or the now popular mini-bid approach. This necessary process has seen significant changes and revitalization thanks to digital tools and innovations that help transportation service providers adjust to the faster and higher-pressure stakes of the modern transportation procurement process.

Elimination of Data Siloes Boosts Collaboration to Reduce Confusion and Find Capacity

By streamlining the transportation procurement process and removing data siloes, it is easier for transportation service providers to improve collaboration and efficiency throughout the supply chain. The move toward more all-encompassing tools and platforms makes it easier to reduce confusion while also making it easier to secure capacity. The future of bid management technology will bring multiple systems and teams together into a cohesive and cooperative environment. Rather than navigating a complicated data silo of separate systems and tools, innovative platforms and tools will allow for faster communication and coordination anytime and anywhere needed.

Brokerages Can Prioritize Interactions With Clients and Spend Less Time Handling Lengthy Manual Back-Office Processes

Transportation procurement processes, in general, have gone through some considerable changes in recent years. The shift toward more brokerage-assisted methods has allowed for faster and less stressful interactions between clients and shippers or carriers. It has also streamlined back-office processes and made it easier to handle many mundane and routine tasks with automatons and third-party brokerage services. Digital procurement allows organizations to deliver on their promise to provide reliable transportation services at a reduced cost. Embracing new technology and taking advantage of freight broker services can help prioritize customer interactions and improve daily operations within the modern supply chain network.

Reap the Rewards of Digital Tools in Your Transportation Procurement Process

Dealing with the finer details of transportation procurement has long been a primary focus for transportation service providers. Thanks to advances in automation and digitization, various third-party team members, managers, and logistics providers are more connected and in sync than ever before. The entire supply chain can benefit from digital tools and innovative transportation procurement, even amid the most volatile markets. Request a newtrul demo to learn more today.

 

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