3 Key Considerations for Deciding When to Do a Transportation RFP

The current freight market landscape has left many unsure about their next steps. Procurement leaders face several costly decisions, including whether to execute their annual full network RFP. These one-off conversations reflect the growing uncertainty of when the freight market will turn and what will be the best route for their network.

A well-timed RFP can significantly impact cost efficiency, service quality, and long-term partnerships with carriers or logistics providers. Understanding the key drivers for initiating an RFP process can help organizations align their transportation strategy with operational goals and market conditions. Before embarking on transportation RFP discussions, we provide the primary considerations to evaluate for informed decision-making.

1.Evaluate your transportation RFP needs

Before you decide whether to bid, you need to evaluate your current transportation network. A few questions should be considered:

• Is your network meeting all your operational requirements effectively?
• Are there persistent bottlenecks that need to be addressed?
• What are the financial implications of maintaining your current network versus exploring new options?
• Is your carrier base the right mix of asset vs. broker or regional vs. national?

Taking these factors into account will provide you with a clear picture of your current network's performance, and give you insights into whether you need to go to bid or not.

2.Identify your transportation goals

At this stage, it’s crucial to align your transportation RFP with your organization’s larger goals. Taking the time to reflect on why you’re initiating this process can lead to significant savings in both time and money.

Whether your aim is to diversify your carrier base, meet sustainability targets, or reduce costs, the decision to issue an RFP should be firmly tied to these objectives. It’s equally important to consider the risks associated with not issuing an RFP, rushing through it, or delaying it. Each of these options can have a ripple effect on your organization and potentially disrupt your broader strategy.

Rushing the process could lead to inviting the wrong carriers, failing to set clear objectives, or making decisions based on incomplete or inaccurate data. On the other hand, delaying your RFP may leave you vulnerable to future price hikes. Careful planning and alignment with your goals are key to ensuring the success of your transportation RFP.

3.Choose the right partners

Select the right partners who can guide you through the evaluation process in an unbiased manner. Opting for the free or easiest option might not always align with your company’s goals. Instead, work with a partner who prioritizes your success and helps you achieve your specific objectives.

Every network is unique, so it’s essential to take an approach that best suits yours. A reliable partner can help determine whether you should avoid bidding altogether, extend current contracts, or pursue a comprehensive network RFP. They can also guide you in exploring tailored solutions, such as mini bids focused on a specific region, site, lane, or carrier. By evaluating each contract individually, you can uncover the strategy that delivers the most value for your network.

Why choose Breakthrough?

We are the right partner to help you make an informed decision about your transportation RFP strategy. With years of expertise and a deep understanding of the industry, we provide you with the data-driven insights you need to make confident choices. Working with us means your strategy is backed by real-time, shipper-transacted data, ensuring you’re making decisions that deliver long-term value and keep your network in alignment with market conditions.

Solidify your transportation RFP strategy with Breakthrough

Deciding when to do a transportation RFP requires a lane-level analysis of your network performance, alignment with wider organizational goals, and the right partner selection. By evaluating these key factors, you can make informed decisions that positively impact your organization's efficiency and bottom line.