As freight-pricing application programming interfaces (APIs) continue to proliferate throughout the transportation industry, they increase the data and information that shippers, 3PLs and carriers have at their fingertips. Not only do they help create efficiencies in operations, but they can also increase efficiency in the contract negotiating process.
How Technology Can Improve the Negotiation Process
Replace outdated processes: Freight-pricing APIs allow you to eliminate get rid of static tables and routing guides and provide all of the data you need to negotiate the best rates with carriers. APIs will enable you to convert from an annual conversation with your carriers to monthly pricing reviews and adjustments based on real, transactional data that tracks changes in volume, customers or networks.
Access to data: Another benefit of implementing APIs is the access to all of your freight, customer, shipment and transactional data. Through APIs, you can see your customers’ freight history, allowing you to negotiate customer-specific or blanket pricing when it would be more beneficial. Additionally, you have access to real-time data that allows you to see how each carrier performs for you and your customers. You can see which lanes each carrier was used for and how their rates compare to others. You can also use APIs to compare carriers and tariffs. The APIs also automatically update as soon as carriers change any pricing, lanes or discounts, giving you the most up-to-date information to use in the negotiating process.
Automate the shipping process: APIs also simplify and automate the whole shipping process. They can automate the freight to carrier transaction, immediately send pickup confirmation, PRO numbers, electronic BOLs, tracking, invoicing and more. The use of APIs help create efficiencies and increase cost-savings to manage the shipment execution and even your back office functions.
Improve Contract Negotiations with APIs
To ensure you have the data you need, it is time to utilize the technology that is available, including freight-pricing APIs. By implementing APIs into the freight-pricing process, shippers and 3PLs save money and operate more efficiently. Therefore, the minimal investment to integrate pays off quickly.
To get even more information to improve your LTL contract negotiations, download our Carrier Negotiations Guide by clicking the button below.