We'll focus on the top five FTL procurement issues that shippers have encountered in the past. Then, we'll go over how businesses may use technology and change management strategies such as multiple pickup deliveries to get around these obstacles and convert an annual bid event into an efficient series of mini-bids over the course of a year.
Let's Move Onto Top Issues That FTL Delivery Services In Canada Face
1. Lack of central oversight over the purchase of FTL delivery services in Canada. It goes without saying that a company's FTL network will be more complicated the larger it is. Annual bid events for businesses of any size become difficult due to factors like limited access to accurate data, difficulty compiling
Key Performance Indicators, and "rogue" operating units with a company's network that tender loads to unapproved carriers, keeping in mind that the majority of logistics teams are understaffed.
2. Another difficulty that shipping professionals encounter is timely visibility into actual vs. budgeted FTL costs. Although they execute RFPs, oversee operations, and approve freight invoices, shipping managers occasionally lack visibility into how costs are changing in relation to a budget.
This may make controlling the FTL procurement process much more challenging because it is closely related to problems like tender rejections and paper rates.
The number of carriers that shippers invite to a bid is one of the major problems they have while purchasing FTL delivery services in Canada.
3. Shippers only invite a relatively small pool of current and potential truckers to an RFP due to time restrictions and limited access to a large base of carriers.
It is challenging for shippers to obtain an accurate portrayal of market circumstances when only a small number of bids engage, which is essentially an under-representation of capacity.
When a shipper wishes to alter its roster of providers because it is dissatisfied with present carriers, this constraint-based problem becomes much more problematic.
Even if a shipper can vet a couple of providers that meet their service needs, the capabilities of hundreds of potential partners will remain untapped due to the same time and access constraints mentioned above.
4. The period needed to complete FTL procurement activities The length of time needed to finish an FTL proposal is one of the biggest barriers to an efficient RFP process. It's not rare to see bids take three months or longer to complete, which is partly due to the intricacy of a shipper's FTL delivery services in Canada.
Manual RFPs just take too long and waste human resources that could be used for other aspects of the company from a time and opportunity cost standpoint.
The fact that RFPs are created for a one-year contract duration is also crucial. While that obviously fits within a financial time frame, the prices quoted for a 12-month agreement don't remain correct due to ongoing changes in market conditions. monitoring RFPs, contracts, counteroffers, and multiple pickups deliveries can be challenging.
The difficulty of manually keeping track of what happens during an RFP event is a significant factor in why FTL procurement systems produce less-than-optimal results. Even the most organised bid pros quickly become bogged down in a sea of inconsistent information, version control issues, and the ongoing need to "get everyone on the same page" in what is still a spreadsheet and email-based process.
5. Let's not forget that before even starting the multiple pickups deliveries, a shipper must perform a request for information if they wish to include new carriers in the mix. Only after evaluating possible carriers via an RFI can shippers start to handle the influx of orders that will inevitably come in.It might be difficult to keep track of RFPs, contracts, counteroffers, and RFIs. FTL delivery services in Canada and procurement solutions don't always get the best results because it's challenging to manually keep track of what happens during an RFP event.
Even the most organised bid professionals can easily get mired down in a sea of inconsistent data, version control problems, and the constant need to "get everyone on the same page" in a process that is still based on spreadsheets and emails.
Conclusion
A shipper must conclude a request for information if they want to add new carriers or multiple pickup deliveries to the mix before even beginning the procedure. Shippers can only begin to manage the surge of orders that will inevitably come in after analysing potential carriers via FTL delivery services in Canada.
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