Shippers sometimes individually decide to solicit bids to their advantage. On the other hand, it is a great way to make carriers understand their position in the market and establish better carrier- shipper relationship. Shipping bid refers to the procedure of asking bids for proposal from incumbent as well as potential carriers. Though bidding has an age old history but when it comes to shipping bids, both the parties can avail equal benefits from it. Eventually bidding allows carriers to know how much competitively they can earn in this business and the things to keep in mind to develop a good and profitable business.
How does shipping bid work?
The shipper mentions their work details. When the carrier comes in search of work, they look out for work opportunities as per their preferred route, region or load. Once their find a favourable task, they bid on it. Carriers can bid till the time they win or lose the bid. Once you win, you will get the details of the job and you can start with it instantly. If there are documents needed such as insurance or agreement, then you should work on them, otherwise as soon the delivery is confirmed, you can get your invoice cleared. Several companies also offer tracking package facilities like Purolator tracking which make it easier to track your shipment.
Best steps in shipping bids to enhance strategic value
Bidding enhances strategic value to the company of the shippers. Because it includes re-entering bargaining one after the other bid, hence shipper gets better negotiated deals in their hand. Also they can get in touch with more and more carriers. Hence, it allows the shippers to develop an extensive carrier network for their business. Rather than focusing on a single carrier, they can expand their carrier clientele and choose different carriers for different product deliveries and areas.
On the other hand, rather than concentrating solely on one shipper, carriers can also expand their clientele base and reach out to more and more shippers. They can also develop personal relationships with them, out of the bidding site and get direct contracts.
Healthy shipping bids allow carriers to prevent in falling in the pitfalls of bankruptcy, hence all shippers and truckers should work to improve shipping bids. Also, bid on shipments represent another procedure and prospective cost for shippers. Thus, it is important to follow some essential practices and apply them to shipping bids to create strategic value. With the right steps in this course, there will be more work for carriers and better choices and price options for shippers.
- Hold yearly events to attract new truckers and shippers.
- Always be on the search to find new truckers and shippers on-board.
- Re-allocation of lanes to serve carriers in a better way
- Have transparency in every deal
- The carrier should focus on the company they are working with and try to develop better relationships to get consistent work.
With these tips, both carriers and shippers can benefit from shipping bids.