It’s RFP season year-round in the new normal and as a buyer of logistics services, we know there’s a lot on your plate. You are required to compare all solutions received, confirm arrival times, check on routings and make a choice on the option which best meets your business needs. The awarded LSPs are notified, and then it is all systems go.
But what then happens to the LSPs that took the effort to quote, but were not successful? Often they are left in the dark as to why they didn’t win the business.
“It’s Not Me; It’s You.”
Providing (immediate) feedback is crucial if you want your LSPs to remain engaged and - more importantly - improve their future offerings. The better the feedback, the better your incoming solutions will be over time!
Although bid-boards are common for road freight, and reverse auctions are used for basic commodities such as toilet-rolls or pens in bulk, there are no accepted or uniform methodologies for procuring international freight. So here at Cargobase, we asked LSPs what kind of feedback they would like to get, and how best to receive them. Here are some insights:
LSPs: “Oh Please, Not Another Race to the Bottom”
LSPs are often concerned about bidding becoming a race to the bottom, with shippers focused only on rates and ignoring service levels. The preferred form of receiving feedback is one that is quick (e.g. sent within seconds of award), clear and to the point.
At Cargobase, we give the shipper multiple options to provide feedback easily and succinctly to their LSPs. The most common method is the ‘quick feedback’ option which allows the shippers to indicate whether the defining factors were: “Pricing, Routing, Transit Time or Reliability”. The LSP is then notified both in-platform and via email.
Cargobase Feature: “Quoting Traffic Light”
If the shipper would like to share more insights on pricing, they could decide to turn on the ‘Quoting Traffic Light’ feature. This feature tells the provider where they stand compared to the quoted average, which provides enough guidance but avoids a race to the bottom among the LSPs. The Quoting Traffic Light is fully customizable per shipper and per freight mode.
Providing feedback to your LSPs gives them clarity and guidance for their future bids, thereby creating engagement, a better understanding of the shippers’ needs, and ultimately a greater likelihood of a commercial match between shippers and LSP!
Get in touch with the Cargobase team to see how our feedback features such as the Quoting Traffic Light can help you receive better quotations!