On Wednesday 9/23 I attended American Shipper Magazine webinar on transportation procurement. Working for food and beverage shippers for over 30 years and being responsible for transportation procurement for over 20 of these years, I’d give this presentation 4.5 out of 5 stars. Speakers were: Vikram Balasubramanian of MecuryGate; Andreas Katsaros of Blue Grace Logistics; Steve Banker of ARC Advisory Group; moderated by Eric Johnson of American Shipper. A few key takeaways:
Key areas/buckets in which automated procurement and TMS use reduce freight spend:
Best practices in freight procurement:
Leveraging technology in freight procurement:
Blue Grace Logistics Procurement Process
My comments on the above procurement process: most shippers spend most of their time and effort on steps 2 and 3. execution and analysis. For a successful RFP steps 1, 4, and 5 are the most critical albeit not the most glamorous. Spend enough time and resources on: up front preparation( date cleansing, stakeholder buy in, location profiles, carrier invite strategy, etc); Implementation( contract administration, freight payment set up, on site visits with carriers, loading rates into TMS) and Measure/monitor( performance, pricing, documented savings, carrier and location report cards, carrier relationship management)
I would encourage shippers to sign up for future webinars by American Shipper Magazine.
Joe Lombardo, NGNF (nice guy, no freight)