Understanding Freight Tendering

If you notice that your freight invoices come with a list of additional fees which are simply blowing your costs out of proportion, you might be wondering “what happened?” In most cases, these fees don’t carry a detailed explanation leaving people lost and confused.

This is a problem for many people. Everyone wants to reduce these costs and simplify their freight invoices. To do this, the best course of action you can take is to start understanding the freight tendering process.

By understanding freight tendering, you can set your service criteria and look for the best freight providers to fulfill your needs. By doing this, you will get a more competitive price and an accurate service.

Know the Opportunities in Your Market

The first thing you need to do is look for high-quality freight companies. Once you’ve done that, get yourself on the supplier list for them so that you get invited when there is a tender.

If you don’t do this, you will miss many tendering opportunities. However, you shouldn’t just enlist and wait until you get invited. You need to do a proper follow-up as well to increase your chances of success.

Do a Follow-Up

The first important step towards getting a tender as a supplier is to get a request for information (RFI) document. The RFI can be a very valuable tool to gather vital information about service providers and their capabilities.

By collecting and sending out different RFI documents, one can create a list of providers and compare their offers. This is how you can establish a better position on the list of service providers that actually have something to offer.

Know all the Requirements

As a bidder, you need to understand the scope of the work and the requirements that go along with a bid. Additionally, you must be able to deliver everything you promise before bidding. If you get shortlisted as a valid candidate, you will likely receive a request for a quotation or a request for a proposal and, in some cases, a document that combines these two.

The RFQ is commonly used for standardized services while RFP I used for more complex projects. No matter the case, you need to be able to do everything that is outlined in these documents.

Clarify Processes

The orientation meeting is a very important event where deadlines are discussed, courses of action, which systems will be used, and so on. It will give you all the answers you need to properly handle your tender.

There are companies that use spreadsheets for container details while others use cloud-based systems. Make sure that all the information is neatly added to these lists and that all important details are mentioned.

In the end, don’t be afraid to ask for clarifications from your customers. Tenders can involve multiple routings and schedules, as well as various requirements that can sometimes be confusing. If there is anything unclear, make sure to get the information you need.

For comprehensive freight solutions reach out to JRC Dedicated Services today!

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