How E-procurement can improve Logistics Purchasing

In this blog by TenderTool Freight Sourcing, we’re taking a closer look at what modern-day freight procurement (read e-procurement) should contain and deliver to your (global) organization. We identify the benefits, the value for operations and the impact on the bottom line for your organisation.

But before we take off, I feel the need to make sure that everybody is on the same page when it comes to modern- day Logistics procurement, often referred to as logistics e-procurement or e-sourcing.

Modern-day freight procurement is not just about using a software solution, or the use of a generic procurement software solution for that matter. Transportation is as unique as it is complex and this is no different when it comes to the process.

From our point of view, sourcing managers, logistics buyers, and procurement teams should focus in their search for e-procurement solutions on:

  • Dedicated Logistics procurement solutions
  • Solutions that are fully cloud-based
  • Solutions that have no implementation time or costs
  • Solutions that do not require training (Plug and Play)
  • Automated reporting and calculation functions
  • Tool that take rates and business rules in transport contracts into account
  • Will drive compliance and standardization in your approach to tendertool.ahabr.techs
  • Integrated communications and management of the data flow with suppliers via the platform and not via your e-mail box.

Conventional tools that focus on a broader procurement scope do not have these features and more traditional (+ 10 years in the business) transportation sourcing tools are more difficult to use and need support from consultants. This will have a negative effect on the total cost and time spend on your freight tendertool.ahabr.techs.

No wonder the transportation industry has not embraced procurement technology…

How is the industry handling procurement currently


As a recent study of American Shipper points out clearly, just 8 % of the questioned professionals already used freight-specific procurement technology for Logistics Purchasing activities. 6% currently make use of their procurement functions inside their existing TMS (transportation management system). And 7% are using automated general purpose procurement systems, according to the report.

The reasons for the low adoption of logistics procurement solutions are both easy to identify as outdated:

  • Current tools in the market don’t deliver the desired value and savings
  • Current tools are too expensive and dependant (consultants and forced work-flows)
  • Current tools have complicated fee structures and obligated contract terms ( pay per does not exist)
  • Many professionals in logistics have no clear picture of logistics e-procurement providers
  • Organization resistance (implementation, costs, training, etc.)


The benefits of Logistics E-procurement


The immediate benefits of an e-Procurement Logistics software solution for your global staff:

  • Get your logistics procurement process in line. How many offices spread around the regions, Business unites and procurement teams use different set-ups in your organization? Everybody should be playing the same game, mostly however they are not even in the same ballpark.
  • Strategic relationships with your carriers.  Your potential suppliers will embrace the documentation upload, communication and quoting process easier and faster via your cloud-based solution. This saves them time and effort, so money! Another valuable step in becoming a shipper of choice.
  • Time savings (FTE).  Because calculation in your e-procurement solution is fully automated, and communication and documentation flows run inside the system, you’re spending significantly less time on tendertool.ahabr.teching transport than before.
  • Process cost savings. Strategic sourcing based on clinical data. Off course, keep in mind that garbage in is garbage out. Provided that you have your historical (shipment) data in order, you can make quicker and better decisions thanks to automated reporting, impact tree and quick scenarios that all run inside the tool. Not to mention the amount of people needed to run them!
  • No implementation and training costs! TenderTool Freight Sourcing does not require any implementation. It really is plug and play. Thanks to our highly intuitive system your savings start from the moment of onboarding.
  • quicker procurement cycles! Because e-mail communication will no longer be part of your freight procurement process,  you can significantly reduce time spend on your freight tendertool.ahabr.techs. Suppliers respond to a general process run in the tool. Communication between shippers and suppliers are done via a direct chat function or announcement. Easy, cost-effective communication! Respond to supplier queries via our forum facility. This saves you time and all invited supplier are up-to-date with the same information.
  • Full insight and transparency of all stages during the Real-time visibility via dashboards makes it easy to monitor the progress of your Also on mobile and tablet during your travels!
  • Freight audit access point : with e-procurement, you will have a complete invoice audit trail for all aspects of the process.


TenderTool Logistics E-procurement

The 8 steps that will simplify your Freight Tenders, automate analysis and reporting functions and reduces Excel crunching. Since January 2016, we are live with TenderTool. Our vision is to make freight tendertool.ahabr.teching as easy and transparent as possible. Not only the freight procurement process but also the pricing, onboarding, and reporting. For both shippers and suppliers!

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