Theheavyliftingisnowdoneforyou!Automatedcalculation,Excelfunctions,

scenariobuildingandreportingprocessedwithinseconds.

Cloud-basedcommunicationanddocumentationmanagementcanreduce

thetimespentonafreighttenderwith70%

PlantoadoptProcurementTechnology

4ProcurementpainpointsthatTechnologycanaddressin2017

ANALYTICS&REPORTING

CLOUDCOMMUNICATION

34%Ofsurveyrespondentshavenoplanstoautomatetransportationprocurementpractices.

Planstoadopttechnologywithinthenext12month.

8%

TheStateof

E-PROCUREMENTIntheLogisticsIndustry

Assuch,logisticsconsultantscanbemorefocusedattheclientsandthecarriersduringthe

tenderandofferingmorevaluebasedontheir

knowledge,experienceandskillsthandoingworkthatshouldbeautomated.

NolongeryouaremanagingyourcarriersviaconfusingExcelsheetsandyourinbox.Onecentral

flowinsidethecloudallowsyoutomanageyour

carriersreal-time.Dedicateyourtimetothingsthat

reallymatter!

TheStateofProcurementTechnologyadoptionDespiteaclearunderstandingofthepowerofprocurementtools,shippershave

stillnotadoptedfreightsourcingtechnologyonalargescale.Infact,manycompaniesarestillrelyingonamanualorspreadsheet-basedapproachtotransportationprocurement.Lessthan10%ofshippersuseadedicatedfreightprocurementtoolforalltransportationbuyingactivityandmodes.

Thevastmajorityofthemarketstilldoesnotmakeuseoftransportation-specificprocurementsolutions

Planstoadopttechnologywithinthenext12-24month.

11%

Adoptioninthe5year'scompanyplan.

5%

37%Ofsurveyrespondentsareuncertainabouttheadoptionoftechnology

Theheavyfocusonexceltemplates,excelmacro’swhichstartstolooklikehobbying.Maybefreightbuyingisnotsohardafterallandtendermanagersshouldfocusmoreonhavingclearpartnersinsteadofdiggingdeepintoexcelinordertofindhiddenpricingpatternsthatwillrevealtheholygrailandmassivesavings.

Poorfocusoncommunicationwithcarriers.Explainingwhatthetenderisabout,whattheobjectivesare,personalcontactwiththecarriers,helpingthemthroughouttheprocess,givingproperfeedbacketc.Itisallnotdoneoronaverylimitedscale.Nowonderinmosttendersnotmorethan50%ofthecarriersactuallytakepart.Thisisanareaforenormousimprovement.

Tendersareoftenmanagedbypeoplewhoarenotwellequippedtodosobecausetheyjustdon’thavetherightskillsetorknowledgeortheydoitonlyonanirregularbasis.Inthiscase,getaconsultanttohelpyouorgettrytomaketheprocessandthetenderasstraightforwardaspossible.

Communication

ExtremefocusonyourowninternalRFPprocessandjustexpectingthateverybodyshouldandwillfollowtheirprocess.Youarenotadaptinginanywaytowhatworksforcarriersbutjustdemandingtheyfollowyourofteninconvenientfill-inexercise,notallcarriersmaybeequippedtodothisinthebestwayandwilleitherparticipatepoorlyornotatall.

BarriersofProcurementTechnologyadoption

Excellimitations

Limitedskills Collaboration

2016

Shipper 3PL

Lacksreturnoninvestment

Currentsystemorprocessmeetsourneeds

Organizationalresistancetochange

Availablesystemsdonotprovidethefunctionalitywerequire

Wedonothavethetechnicalexpertisetomakeachange

Thestrongestfactorskeepingcompaniesfrominvestinginprocurementtechnologyareaperceivedlackofreturnoninvestmentforshippers,andabeliefthatthecurrentsystemmeetsexistingneedsontheLSPside.Nearly20%ofthemarketremainsconvincedthatcurrentsystemsdon’tofferthefunctionstheyneed.

WhereProcurementTechnologyisneededNearlytwo-thirdsofretailersbelievetransportationplaysacriticalpartintheir

companies’omnichannelstrategy.In2016,75%ofmanufacturerssaidoceanfreightprocurementismoretechnology-driven,comparedto24%lastyear,while65%saidairfreightismoretechnology-drivencomparedto49%in2015.

Thebigpro'sofdedicatedFreightProcurementSolutions

CarriersnowadaysareusedtoreceivingfreightRFQ'sfrom

automatedprocurementsolutions.

Formerly,(older)procurementtoolswereseenasunfavorablebecausetheywerenotalignedwiththe

importanceoftheshipper-carrierrelationship.

Movingfromapurespreadsheet/emailapproachtoonewheretheRFQis

submittedelectronicallyandbiduponbycarriersisnowseenasbestpracticefor

shippersandLSP's.

www.tendertool.comITheonlyindependentfreightsourcingplatformIinfo@tendertool.com

BenchmarkfreightratesScorecardfreightcarriers

Trackservicelevelparameters

Source:AnalogStrategiesinanOmnichannelWorldTransportation

ProcurementBenchmarkStudyAmericanShipper’sTransportationProcure-to-PayBenchmarkSeries

Companiesarevulnerableiftheydon't

50%surveyedwereneutralordidn’tknowanythingaboutexistingtools.Thissuggeststhatthemarketiseitherunawareoruninformedabouttheglobalcapabilityoffreightprocurementtechnologyproviders.

CapabilityofcurrentProcurementtoolsforglobalLogistics