Due to the pandemic, we have seen seismic disruptions within global supply chains. We are still facing uncertain circumstances. This highlights the need to prepare more thoroughly for your next transportation bid. We also call this a Request for Proposal (RFP).
Having a sound transportation strategy will help you now more than ever. You can enjoy dividends throughout the year and improve carrier performance through it.
RFP Checklist:
Let’s dive into each step in a bit of detail.
Create A Stable Operating Environment:
It would help if you focused on the basics first. Establish a stable operating environment before you dive into the more complex stuff. You can use a combination of technology and human experience for this.
Every shipper needs to have an organized system to analyze supply chain data. There are a lot of sources you can use from the internet.
Human expertise within your organization requires a set team to manage each facet of the supply chain. You will need to focus on order management, procurement, and load planning.
Establish KPIs That Define Success:
Supply Chain Key Performance Indicators (KPIs) help you make a data-driven system. A system that will help you cut costs and enhance operational efficiency.
Another essential rule to remember: Don’t start with the KPI but focus on your business goal. Once you know the plans, you can shape your KPIs around them.
Align Procurement & Operation Goals:
You know what you’re measuring now that you have an organized team and a set procedure. It would help if you now made sure that everyone’s on the same page.
In any shipping organization, there is a debate between procurement and operations. Procurement wants to expand the services while functions wish to cut costs to a minimum. Your best option is to find a balance between both.
Understand The Current Market Trends:
You need to have information on the following:
- Thorough knowledge of how the supply and demand network works
- An overview of the trucking market
- Market updates and forecasts
You need to manage your executive team right off the bat in an inflationary market. Make strategic relationships that will be there for you when you need them. It is a good investment.
When the market is slow, don’t be afraid to give your services to the lowest bidder.
Refine Your Carrier Strategy:
You should have a diversified supply base. This means that you should have a range of carriers on your side to get the best opportunities and profits.
Have The People & Technology Resources To Conduct An RFP:
You have achieved alignment in your company and have a set strategy. You also know your place in the market.
Now you can conduct a bid. You need to engage your available technology and team.
Things To Consider When Running Your Bid:
- Manage your budgeting cycle and conduct your RFP
- Send welcome letters to providers highlighting the importance of KPIs for your company. Provide a fair, accessible schedule to them.
- From a welcome letter to award, you should complete the RFP within 6-8 weeks.
FAQs
Q- How RFPs help the shippers?
Shippers can narrow down the potential carriers to those who will best execute the work during this process.
Q- Why is the RFP so important?
RFPs, help government agencies and nonprofits ensure transparency. It shows the public they’re accountable for project goals and vendor choices. Writing an RFP checklist encourages organizations to create benchmarks to measure project success.
Conclusion:
RFP checklist is a great way to help shoppers narrow down their potential carriers. RFPs help shippers to know which carriers will suit them the best.
Also Read: Top 6 Advantages Of Regional Carriers