In today’s competitive logistics landscape, crafting a compelling Request for Proposal (RFP) requires more than just cost comparisons. A data-driven, automated approach is essential for making strategic freight decisions and maximizing efficiency.
An automated approach integrates real-time data analysis, allowing businesses to quickly assess historical shipping costs, carrier performance, freight volume, accessorial charges and transit times. Leveraging automation in RFPs creates a more dynamic, data-driven decision-making process, helping Shippers optimize their supply chains and gain a competitive edge.
To fully capitalize on automation, businesses must focus on the most impactful data points that drive efficiency and cost savings in their logistics operations. Here are the top five shipping data points you need to collect and analyze before finalizing your next RFP.
- Historical Shipping Costs and Trends
Without a clear understanding of past shipping costs, it’s impossible to set realistic benchmarks for future pricing. Analyzing historical freight spend across different modes helps Shippers uncover cost trends, seasonal fluctuations and potential inefficiencies.
Key data points to track:
- Shipping costs by mode (Truckload, Less-Than-Truckload, Final Mile, Parcel)
- Seasonal freight spend fluctuations and rate trends
- Cost variations among carriers by lane and region
- Unexpected cost spikes and inefficiencies
How it strengthens your RFP:
Shippers who analyze historical cost trends can anticipate future pricing shifts and negotiate better rates with carriers. Presenting detailed shipping cost data allows for data-backed pricing discussions, ensuring a more competitive and cost-effective procurement strategy.
- Carrier Performance Metrics
Cost savings mean little if your chosen carriers fail to meet service expectations. Evaluating carrier performance ensures Shippers partner with providers that consistently deliver on-time shipments, minimize claims and maintain billing accuracy.
Key data points to track:
- On-time pickup and delivery rates
- Claims ratio (damage and loss rates)
- Billing accuracy and invoice discrepancies
- Carrier capacity and service consistency
How it strengthens your RFP:
Including performance data in your RFP helps weed out underperforming carriers and ensures partnerships with reliable providers. Poor service leads to delays, damaged goods and unexpected costs, making carrier quality a top priority in freight procurement.
- Freight Volume and Lane Density
Freight volume and shipping lane consistency directly impact carrier pricing and service availability. Carriers prioritize Shippers with high-volume lanes, often offering better rates and guaranteed capacity.
Key data points to track:
- Total shipment volume per lane and mode
- Regional shipping patterns and capacity needs
- Carrier-specific volume commitments
- Seasonality and demand fluctuations
How it strengthens your RFP:
Carriers prioritize Shippers with high-volume, consistent freight movements, offering better pricing and service guarantees. Presenting this data in your RFP demonstrates purchasing power, increasing your ability to negotiate competitive rates and reliable service.
- Accessorial Charges and Additional Fees
Unexpected fees from carriers can quickly erode cost savings. Shippers must analyze their accessorial charge history to identify recurring fees and uncover opportunities to negotiate better terms.
Key data points to track:
- Frequency of common accessorial fees (liftgate, inside delivery, residential surcharges, detention fees)
- Unexpected charges from past invoices
- Carrier-specific accessorial policies and waivers
- Cost mitigation opportunities for recurring fees
How it strengthens your RFP:
Shippers who analyze accessorial trends can negotiate reduced or waived fees, leading to more transparent pricing. By proactively addressing these charges, businesses can avoid budget overruns and ensure accurate cost forecasting.
- Shipment Transit Times and Service Levels
Balancing cost and service levels is critical for meeting customer expectations while maintaining profitability. Shippers must assess transit times across different modes and carriers to ensure reliable delivery performance.
Key data points to track:
- Average transit time per carrier and shipping mode
- Expedited vs. standard service usage
- Service level agreements (SLAs) compliance rates
- Customer satisfaction scores related to delivery speed
How it strengthens your RFP:
Shippers who understand transit time variability can request specific service level commitments in their RFPs. By aligning carrier selection with delivery performance requirements, businesses can improve efficiency and ensure reliable deliveries.
Optimize Your RFP Strategy with Data-Driven Decision Making
A successful freight procurement RFP relies on data, not just cost estimates. By leveraging insights from historical costs, carrier performance, freight volume, accessorial fees and transit times, Shippers can build a procurement strategy that maximizes efficiency, reduces costs and strengthens carrier partnerships.
Before issuing your next RFP, ensure you have access to these five key data points. The right insights will give you the leverage needed to secure the best rates, improve service reliability and gain a competitive edge in the market.
A Single Source of Truth with Banyan Technology
Having access to all these critical data points in one platform is key to streamlining your RFP process and making informed business decisions. LIVE Connect®, Banyan Technology’s advanced freight management software, provides a centralized hub for tracking historical costs, carrier performance, freight volume, accessorial fees and transit times while also delivering innovative value-added solutions that enhance operational efficiency.
With robust reporting tools and cutting-edge AI and BI capabilities, including carrier cost and performance dashboards, you can analyze data in real time and optimize your shipping strategy effortlessly. Banyan’s CarbonTRAX® solution provides real-time carbon tracking and reporting to help you align with sustainability goals while maintaining cost efficiency. Additionally, Banyan’s integrated freight insurance options protect your shipments and reduce financial risk to give you peace of mind throughout the supply chain.
Banyan’s accessorial verification tools ensure accurate cost assessments by automatically identifying and validating accessorial needs, eliminating surprise charges and improving invoice accuracy.
A data-driven RFP process positions your business for greater success by securing the best rates, service levels and additional competitive advantages. By leveraging insights from historical costs, carrier performance, freight volume, accessorial fees and transit times along with Banyan’s industry-leading value-added solutions, you can create an RFP that attracts top-performing carriers and enhances your shipping operations.
To experience how LIVE Connect can help you analyze your shipping data to elevate your next RFP and drive smarter freight decisions, visit banyantechnology.com.
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