R2 Logistics

How to Drive More Productive LTL RFP Negotiations

In the complex world of LTL shipping, an RFP is one complication that you can simplify. Although planning a request for proposal (RFP) can be stressful, using a few simple strategies can make a significant difference.

At the end of the day, a carrier or shipper wants to know whether the freight will increase their profit margin or cause them to lose money. With this in mind, we’ve compiled a list of best practices for more productive LTL RFP negotiations that will provide the answers they need.

How to Plan a More Productive RFP

The main goal of LTL negotiation is to ensure that carriers and shippers alike benefit from each shipment. To achieve that goal, finding the most efficient way to ship products begins by understanding the intricacies of the process as a whole.

RFP negotiations and shipper carrier relationships will be more productive when you take the following steps:

Research the Carrier

Understanding the carrier’s operations means knowing whether they work nationally, locally, or regionally. In LTL shipping, the distance between terminals affects cost and service. Check the carrier’s company websites for more information about these aspects of their operations.

Know Your Freight

Finding the best carrier is easier when you have a complete understanding of your freight. What are the characteristics of your freight? Do you know whether the freight will fit easily on a pallet, if it is in a box, or if it might need temperature control?

Other things you should know about the freight include its class and weight, supplier information, primary data about the final customer, and carrier info. You should also find out whether the carrier can deliver your freight to a dock.

Do you know what the LTL weight breaks are? An accurate bid depends on knowing what percentage of the freight is under 500 pounds and between 500-2000, 2,000-5,000, or 5,000-10,000+ pounds.

Know Your Customer

Each customer presents different challenges, so it’s vital to know their specific requirements upfront.

Customers often use more than one LTL carrier. Their selection rules can also fluctuate. Some customers change their practices every year and rebid their freight to get the lowest cost carrier.

Chargebacks and delivery issues seem like a carrier problem from the shipper’s point of view. However, these problems and costs are ultimately passed on to you. With this in mind, it’s imperative to provide accurate information to avoid costly surprises later.

Hire a Shipping Management Expert

LTL shipping encompasses a range of challenges, including shipper-carrier relationships. Those relationships have endured even more challenges in recent years due to the pandemic.

As the economy suffered a downturn, shippers started looking to save money. This situation has created challenges in LTL RFP negotiations, as well.

If you are looking to simplify the RFP negotiation process, a transportation management system may be the solution you need.

R2 Logistics: Creating Strong Relationships Between Carriers and Shippers

Shipper-carrier relationships grow through honesty and trust. If you use incomplete or inaccurate data in RFP negotiations, everyone ends up losing in one way or another. To foster solid and long-lasting business relationships among carriers and shippers, you must provide the most accurate bid possible.

With our TMS, you can view rates from top carriers nationwide and choose rates for your budget. Our system also allows you to track carrier schedules and analyze carrier service performance.

Find out why our TMS is the ultimate solution for all of your LTL shipping business needs. Contact R2 Logistics today to request a demo or speak with one of our experts on staff. We look forward to making moves with you.

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