By Mark Gamble, Sr Director, Product Marketing

 

The Industry Is More Unpredictable Than Ever

Anyone in logistics knows it’s a volatile industry, but the swings in the contract and spot markets throughout 2018 and 2019 surprised even the most seasoned industry veterans. Experts are predicting another swing in 2020, adding pressure to logistics service providers who are realizing that locking in contracted transportation revenue is the only way to hedge against the market unpredictability. Securing shipper contracts for an extended period of time provides the logistics provider with stability, predictable cash flows to cover operating costs and peace-of-mind for commercial leaders…and private equity investors.

First You Must Win The Contract

The path to most transportation contracts is the RFP, a shippers invitation to LSPs to compete for their business. In the current market climate, shippers are issuing more RFP’s, more frequently, to more providers, in order to get the best rates and service. But many LSP’s struggle with the process of responding to RFP’s to secure contracted revenue, for a variety of reasons. Some cite the difficulty of qualifying viable requests from the increasing volume of thinly veiled price checks, that is RFP’s designed to gauge market pricing without awarding business. Others complain that RFP’s are largely processed manually, without top-down visibility into the bid preparation and submission – which causes stress, unnecessary delays and diminishes the quality of the bid response. Trying to manage this important process with only manual tracking, endless conference calls, torrents of email and disorganized document sprawl is a sure way to lose to your competition and jeopardize your revenue goals.

To win any contract, providers must do away with the manual RFP response approach and focus on automation, efficiency and teamwork, and look for a bespoke technology built just for this critical logistics process. The ideal solution provides secure, automated workflows, realtime data insight and collaboration tools that improve efficiency and give stakeholders detailed visibility to the entire process from beginning to end, breaking down the barriers of the manual process, saving precious time, lowering costs and raising win rates.

Specialized Logistics Technology To The Rescue

Genpro Transportation, a $160M New Jersey-based Freight Brokerage focused on perishables and ag, considers contracted rates as the “bedrock” of their business, giving them a more predictable revenue model amidst the market uncertainty. To lock in contracts, they transformed their RFP response process using Winmore 360°, logistics specific software that helped them streamline, accelerate and optimize their submitted proposals, improved their bid qualification and helped them create the right solutions to win 25% more contracted revenue.

Learn more about how GenPro transformed it’s RFP response process in this detailed case study whitepaper.

-Mark
[email protected]