Logistics Procurement within the Supply Chain Lifecycle includes extensive planning, spend analysis, preparing and analyzing RFP / RFQ bids, price negotiations, assuring carrier capacity, and shipping and delivery analytics. The goal is to obtain the best possible freight costs which meet the needs and time constraints of your supply chain. Transportation Procurement software is necessary to reduce transportation spend and improve yield efficiency within the supply chain lifecycle. Many companies still perform transportation procurement manually using spreadsheet comparisons and by gut feel of market trends. Neither method is very rational. Nor, do they provide the decision making visibility to create a strategically oriented framework from which to drive logistics cost reduction and improve supply chain efficiency.



Transportation managers are researching ways to automate their Logistics Procurement process and supply chain efficiency. Logistics procurement software does not guarantee instant success nor does it yield immediate supply chain efficiency. The step-by-step process involved in deciding how to automate your logistics procurement will likely produce many questions about your supply chain management and strategic directions which will help you obtain success faster.


Logistics procurement success can be benchmark in several ways. Some companies consider reducing transportation spend as success. Whereas, other companies seek to improve service level guarantees and reduce risk associated with carrier surcharges. The simple goal of reducing transportation costs must be thoroughly examined and strategically planned. Reducing transportation costs within the supply chain lifecycle without a strategic plan can cause deterioration of service and additional risk in capacity efficiency. It is a well known fact that logistics service providers and carriers move high yield shipments first. Creating a long-term partnership with your logistics service providers and carriers is important. Shifting freight between many carriers and continually going out to bid may reduce transportation spend in the short-term, but in the long-term jeopardize the net results gained.


Global Tender Management software will help the logistics procurement process. When selecting logistics procurement software, purchase a hosted Cloud solution. Successful logistics procurement is about collaboration and reducing administrative time so decision makers can focus on What-If Scenario Analysis and total transportation spend per lane or movement.


A Logistics Cloud Procurement Solution will enable on-demand real time collaboration within different departments of your company and with local and global service providers. It allows end to end collaboration during logistics procurement negotiations and after the process with auditing capabilities. It’s nice to get a low freight rate but if your accounting department isn’t in the loop your efforts might be in vain.


Another advantage of a hosted Logistics Cloud solution is maintenance. Access to the latest technology provides your company the competitive edge in negotiating with service providers and carriers.  A software provider with in-house transportation experts in ocean, airfreight and trucking is going to lead you to success faster with valuable insights that you can leverage in your logistics procurement negotiations.


Make sure your transportation procurement solution has RDV technology. RDV is known as Role Dependent View. RDV allows users only to view data which is important to their participation in the logistics procurement process. RDV ensures data confidentially and security. Selecting the best procurement software will put you in the driver seat, steering you strategically to better service at a lower total transportation spend.


Freight Team will help you select the best Logistics Procurement Services for your company. Email us at: info@freightteam.com.