Navigating LTL RFPs for optimal results
Managing Less-Than-Truckload (LTL) Requests for Proposals (RFPs) can be a complex and time-consuming task for shippers already juggling multiple responsibilities. Miscommunication, unclear requirements and overlooked service details can lead to inefficiencies, strained carrier relationships and higher transportation costs.
Fortunately, a well-structured approach to LTL RFPs can drive better results. Let’s explore some proven strategies to help you navigate the LTL RFP process more effectively — turning common challenges into opportunities for stronger partnerships and cost savings.
5 proven practices to streamline the process
Consider these strategies to help make LTL RFP efforts more seamless and efficient:
Figure out your unique shipping needs
Businesses with LTL freight must manage complex pricing structures, multiple handling points and specialized services to ensure cost efficiency and reliability. With so many factors to consider, it can be hard to know where to begin.
Start with some basic analysis. Assemble a detailed profile of your shipping patterns, including information like frequency, shipment volumes, destinations and any special handling requirements. This important data provides potential carriers with accurate information, which leads to more precise and competitive bids.
Create a detailed RFP document
Successful LTL RFPs are built on clarity and detail. To get the most out of yours and find the best fit, make sure to:
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Outline shipping needs and provide comprehensive data — include frequency, volume and special requirements
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State your expectations — ask for what you want in terms of handling procedures, service levels, transit times, etc.
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Communicate pain points — discuss your current operational challenges so potential carriers can better understand your needs
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Define your pricing structure – make sure the structure meets your business needs and appropriately balances risk between you and your carriers.
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Understand your award strategy – balancing your flexibility and constraints with the strengths of each carrier will lead to the best result
Need help getting started? Check out our guide to issuing an RFP to map out your strategy.
Analyze the full cost
Evaluating carrier bids for LTL shipping involves more than just the standard rate. Proactive communication and strong customer service are critical, especially when managing multiple shipments across different carriers.
Assess potential LTL carriers based on transit time, freight handling practices and other metrics that are important to you to gauge overall reliability. Other factors — like accessorial charges, fuel surcharges and potential service disruptions — should also be considered. Here’s a guide on what to look for in an LTL provider.
Also consider what discounts or incentives a carrier may be able to offer based on your volumes, lanes and potential award strategy.
Learn more about what goes into LTL freight pricing.
Unlock value through collaboration
After identifying the leading carriers through the bidding process, enter negotiations with a collaborative approach. Establishing strong relationships with your carriers can result in more favorable terms and better service. This guide on improving LTL negotiations can help.
Know what to expect with market shifts
Evolution and change are constants in the logistics industry. No one wants to be caught off guard, so keeping a close eye on trends — and working with carriers that will be able to support them in any market condition — is critical for shippers to make informed decisions.
Working with a carrier that monitors news, technological advancements and regulatory changes can be invaluable for predicting fluctuations, strategic planning and controlling costs.
Connect with ArcBest and see what’s possible with LTL
Ready to get more out of your LTL shipping strategy? Partner with ArcBest and access over a century of trusted industry experience. Discover how our experienced team can deliver reliable LTL solutions tailored to the needs of your business.
