By John Golob, Chief Marketing Officer

Although most attendees canceled their travel plans before this year’s TPM Conference in Long Beach, a few of us showed up at the Rock Bottom Brewery on Pine Street on Sunday night.  The mood was unsettled but charged like the night before a cat-5 rolled into town.

That didn’t stop the JOC from staying in high spirits and offering some rich insight to an intimate audience.  In fact, William Cassidy, JOC’s senior editor nailed it in a follow-up article discussing how many expect greater flexibility in this year’s road bids. They’re expecting to see contract pricing to “bend” rather than break as rates either rise quickly or plummet, guaranteeing a certain percentage of volume to carriers that agree to rate limits.

In fact, as Cassidy illustrated in his follow-up article, these contracts were much discussed in 2018, when there were double-digit truckload rates and high-single-digit less-than-truckload (LTL) rates. “Last year saw the market flip to shippers and the recovery of some of the 2018 rate hikes,” he added.

If we learned anything from the past, it is the fact that volume guarantees won’t happen without their share of hiccups.  Brokers and carriers can expect many of these contracts to be negotiated by procurement teams who may not understand the nuances of the transportation industry, leading to confusion and uncertainty in the process.

That said, volume guarantees are an interesting development that underscores the importance of investing in bid and tender workflows, ensuring alignment between all commercial functions in the organization, and deploying a digital collaboration platform. This is what up-and-coming brokerages such as GenPro as well as some of the biggest names in the industry (Eden Prairie, MN and Bonn, Germany) have implemented in their organizations..

A surefire way to clear the confusion and address the uncertainty is by investing in a bid and tender collaboration software solution that enables everyone to buy into the same pricing strategy and understand the end game. For that, we can help! Learn more at winmore.app.

-John
[email protected]