Home   Transportation Procurement Solution

Transportation Procurement Solution

Transportation Procurement Solution to help shippers automate contract sourcing. Evaluate bid responses using benchmark data. Save time and money with every RFP.


Transportation Procurement Solution to handle all modes of transportation. Freightgate helps shippers develop and optimize their transportation procurement strategy, establish baseline measurements for transportation bids, service levels, receive and analyze bids, flexibility to compare bids, and award contract.




What Are We Procuring?


When we speak of procurement in the Logistics Management Lifecycle (LML) environment, it is important to understand what we are procuring. If we are in the traditional purchasing and buying mindset, we might be procuring transportation services, warehouse space, consulting services, forwarding and customs brokerage, etc. But if we are contriving or bringing something about with some degree of effort, then we are doing much more, such as:


  • driving waste out of supply chains
  • accelerating sales velocity
  • improving the quality and availability of information
  • collaborating across enterprises and entities
  • shortening the cash to cash cycle


When procurement is focused on bringing these things about, purchasing goods and services is done for very different reasons than just “getting the lowest price.” As a simple example, let’s look at the common activity of procuring transportation from Point A to Point B. The purchasing mindset says — “I need to get the lowest rate.” But when viewed in the context of 1-5 above, it is not that simple. Buying at the lowest price might violate the real objectives if the carrier:


  • has erratic and unpredictable service that drives up the cost of in-transit inventories
  • is slow in quoting and responding to special requests
  • has antiquated information systems that limit visibility
  • does not have the open technology architecture to share information via the Internet
  • does not provide timely proof of delivery, has poor billing processes or less desirable payment terms



Any of the above can easily generate costs that exceed the amount of money “saved” by getting a lower price.


Procurement is by far the most strategic element in the Logistics Management Lifecycle. These decisions require the involvement of corporate leadership, not just management. To be effective, major procurement decisions must align with corporate business objectives for the long as well as the short term. Enterprises must select providers who fit their requirements from a business standpoint, as well as a solution standpoint. This can often mean selecting the candidate that is not the lowest price respondent to a tender.


For service providers who want to win more business at higher yields, it is imperative to demonstrate business and solution fit. Timely, compliant, competitive and well reasoned tender responses help do just that. They show the prospective customer that you understand their requirements and have done the work to generate maximum value in your response — beyond just the pricing. At a strategic level, enterprises are more likely to do business with providers that instill trust and confidence through high business acumen and corporate professionalism.


So no matter what your role in the process, hopefully this article has shown the critical importance of procurement and provided some insights on how to leverage tenders to your competitive advantage.


Turbocharge Transportation Procurement

  • Use Ocean Tender to manage your bid process.
  • Shorten the Procurement Process
  • Reduce you in house resources by 50%.
  • Eliminate Manual Labor, Retrieve Historical Tender Data.
  • Better data accuracy and reliability.
  • Instantly Transmit requests, counters and awards to Carriers.
  • Auto-upload carrier responses and manage your tenders online.
  • Capture all responses independently.
  • Compare responses by total, trade lane, business unit or location pairs.
  • Leverage your rate data history to compare trends.
  • Automatically populate Freightgate’s rate database with your tender Awards.
  • Re-use past tenders with ease for simple resubmission with updated volume.

Reduce Administrative Costs

  • Greatly reduce RFQ response time and cost.
  • Eliminate the IT overhead and hardware necessary to support a dynamic system in house.
  • Prepare 10 quotes in the time it takes to prepare one manually.
  • Decrease document storage and retrieval requirements via the integrated Document Management Engine.
  • Ensure document retention with the rate archive feature.
  • Minimize data entry time by utilizing the file uploader technology.

Solutions and Benefits

  • Management reports on a field and corporate level in order to ensure timely completion.
  • Export functions for the consolidated rates into the target format.
  • Multiple round support.
  • Manage Countering and Awards.
  • Incorporate carrier performance into analysis and metrics.
    Better Ocean Freight Pricing

  • Ensure you have the right mix of services and prices.
  • Improve Your Bottom Line.
  • Reduce Transportation Costs, customers have saved 15% of their spend.


The Freightgate Team excels at finding innovative solutions to improve Transportation Procurement with our vast arsenal of flexible cloud technology tools – take a logistics cloud demo of our Transportation Procurement solutions and experience the difference yourself first hand. Share with us your toughest Transportation Procurement challenge and allow us to come up with a creative, potentially out of the box solution.


Get Fast Solution To Improve Your Logistics / Supply Chain Management