Challenges - Freight Forwarding Industry
Tender & Purchasing Management
Tenders are often unstructured and ignore future needs, resulting in pricing misalignments
Freight forwarding companies often spend between 50 and 80% of their revenues on truck expenses, often relying on external truck fleets for their transport needs. This situation can result in increases in volatility and decreases in potential cost savings, meaning that companies must manage their purchasing very carefully in order to gain an advantage.
Optimizing purchasing decisions can have a large impact on profitability. To improve decision making, managers need to implement a structured tender process for long and mid-range transportation services and an instant way to connect with spot market prices in order to find competitive quotes.
Today, tenders are mainly made based on historic needs, with changes in strategy and forecasts often left unintegrated. The day a tender gets published, it is already outdated and the result is pricing misalignments that base tender prices more on past needs than future realities.
To obtain competitive quotes from the market, freight forwarders need to share knowledge about future demand to allow both parties to collaborate. The better the data quality on anticipated needs, the higher the chance to subcontract the right partner.
flexis Tender & Purchasing Manager enables purchasing departments locally and centrally to generate future-oriented tenders based on continually forecasted market needs. It enables scenario-based decision-making to decrease cost and increase overall profits by selecting the right forwarding partner with the best quality and cost.