Request for Proposal is an open
document made by an organisation with the intent to receive bids from
prospective vendors toward a specialised service. The RFP will
mention in detail about the customer’s requirements and assess
proposals before undertaking a contract with one. In this case, the
specialised service is freight transportation.
Freight carriers have lots of
jurisdictions. While they specialise in some areas, they are a sore
thumb in the others. Some may be known for faster deliveries and some
may have good follow-up routines. It takes a keen eye and observation
to understand what carrier works best for a company.
Shippers and carriers, when it comes to
comprehending needs and requirements, have to be in sync. Even though
an RFP contains all the details, it is not a forfeiture on the
carrier from finding out more from the shipper.
Firstly, drafting an RFP is not child’s
play. It requires meticulous skill and experience so that all the
vitals are covered. More than winning on a successful bid, there are
other important parameters to consider. Like a strong customer
service, fleet size, number of drivers and their experience, IT
infrastructure, pick-up and delivery service, coverage, ability to
carry sensitive and delicate items, and what green strategies have
been put to use or are scheduled to be implemented.
A successful RFP will chart out clauses
that will allow more transparency between the shipper and carrier.
Carriers will be able to provide better services if the shippers are
able to be candid about important information.
RFP will allow the shippers to be
constantly on the learning pedal, which will enable them to review
performances from time to time about their carrier partner. The RFP
will also a throw a light on the scheduling interests and roadblocks,
which will in turn make room for both the parties to plan their
arrangement accordingly without conflicts.
The advantages of using a scorecard is
limitless for carriers and shippers, especially during the RFP
freight payment process. The purchasing or the sourcing team of the
shipper should have no problems in gathering a comprehensive
scorecard. The scorecard will be able to grade the performance of the
departments associated with customer service, payment, and order
processing.
While the shipper is bound to spend
mega bucks for audits on freight and payment companies, a physical
visit makes a lot of difference.
There is nothing like physical
presence. Being able to be in person and finding out for yourself how
things are being done is better than all those endless emails and
spreadsheets. A LIVE visit will make the shipper understand better of
the carrier’s abilities and functioning.
A fine RFP will be able to raise
concerns and stand effectively for making room for provisions of
enhancement in a timely accord.
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