Infographic: 23 roads to strategic reporting in logistics sourcing
In today’s transportation world, logistics sourcing is more than just about price. But how do shippers put together a transportation and supplier sourcing strategy that will earn them the capacity that they need at a price that works for all parties involved?
The current supply chain environment is forcing global procurement teams to scout the best possible suppliers in order to squeeze as much value as possible out of their transportation network.
As Patrick Burnson, Executive Editor of Logistics Management pointed out earlier this month, a strategic logistics sourcing solution has never been more rewarding and necessary for global companies.
“Transportation sourcing, including carrier contract negotiations, is a complex, large-scale function, and often not well supported by a transportation management systems (TMS) or enterprise resource planning (ERP) suite.”
Logistics Sourcing complexity
But the complexity involved with logistics sourcing does not limit itself to just technology. Procurement strategies also depend on transportation mode and the specific requirements of shipments, such as:
- Full Truck Load (FTL)
- Less than Truckload (LTL)
Solid Logistics Sourcing Technology
Price is not the only concern when looking at transportation management, logistics buyers need to pinpoint non-price bid information from logistics service providers to ensure that the selection / awarding is actually strategic, low-risk and not just price-based.
According to Andrew Bartolini, chief research officer of Ardent Partners, the goal for best-in-class organizations is to achieve 95% spend classified with 95% accuracy. And the only way to achieve this is to implement technology.
“Technology is the underpinning that supports the process and people so that the organization can become best-in-class,” says Bartolini. “Without solid technology, sourcing organizations can only hope to reach the ‘reactive’ stage of development. If you’re doing offline sourcing today, then you have to strip out the word ‘strategic.’”
TenderTool Strategic Logistics Sourcing
At TenderTool, we understand what logistics / procurement professionals need nowadays. The ability to easily export (raw) data and run comprehensive analysis are just a few of the cornerstone on which our logistics sourcing solution is built.
Freight transportation management is more than just about price. Simplicity, flexibility, visibility and intelligence are the 4 magic words. We at TenderTool have put the complexity in the background, so procurement and sourcing professionals can focus on their core job.
With TenderTool, there are three ways you can run your freight tendertool.ahabr.tech analysis.
- Quick views
- Standard Reporting
- Power scenarios
TenderTool automatically runs freight sourcing analysis based on the rate cards created in the freight tendertool.ahabr.tech creation.
With TenderTool, there is no need to create lanes, our freight sourcing tool will automatically support you with that while creating market conform rate cards. This means no re-negotiation after Freight Tenders because your rate cards are always 100% solid and never multi-interpretable. All the rounding rules, business rules, weight brackets are set. Measuring quality service is easily customizable using the questionnaire tool.