Six key activities involved in the Freight Transport Service Procurement Process
What is the freight transport service procurement process?
The freight transport service procurement process involves all activities required for acquiring freight services from an external source, such as planning, purchasing, logistics, receipt and payment, monitoring and reporting, as well as inventory management. The correct management of the procurement process is crucial because it helps the organization to save money, run effective delivery times and get qualified freight suppliers.
Six key activities involved in the Freight Transport Service Procurement Process
1- Preparation/Planning
- Identifying requirements
- Shipping lanes
- Type of service (FTL, LTL)
- Type of equipment (DryVans, Flatbeds, Specialized equipment, etc),
- Volume of loads,
- Special requirements (handling, liftgate service, etc)
- Establishing schedule: Pick-up dates, Delivery dates
- Budget definition
- Preparing and issuing solicitations
- Competitive bid
- Request for Proposals
- Direct purchase
2- Purchasing
- Evaluating offers
- Supplier selection
- Negotiation
- Agreement on qualitative and quantitative performance indicators.
- Awarding contracts
3- Logistics
- Monitoring transportation companies performance
4- Receipt and payment
- Arranging payments
5- Reporting
- Provide feedback on carriers performance
- Preparing procurement reports
- Compliance rate
- Procurement cost reduction
- Supplier availability
- Number of suppliers
6- Inventory Management
- Warehousing and inventory control
Freight shipping services from Canada and the US to Mexico
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