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Gangrene in the industry
- Thread starter martinwizz
- Start date
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Bro I don't wanna know about your fuzzy sister
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Freight RFQs are meant to favour the incumbents, keeps them honest. I would usually win on RFPs (and I did a lot of them) when the relationship was built BEFORE the RFP so they understood what was coming with our response.
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Most players not even 6 months. The only thing a salesperson is going to bring on quickly is bottom feeder freight. The good stuff don't come that easy ...
Exactly this.... our RFQ/RFP success is greatly improved if we have an existing relationship.
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I beg to differ. In a case where an outside consultant comes in to administer the RFQ, such as say Nulogx, the prior relationship you may have had or the level of service you offered is completely discounted and not at all considered. It becomes strictly a numbers game where the lowest bidder wins.
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Most of my clients were in the US so Nulogx never played in. Mostly it was the online tools from Transplace and TMC - but they ran totally seperate from their brokerage divisions.
Ya it really depends on the client in this situations.
We had one recently where the client was forced to use a consultant. Did the RFP, got numbers and then went back to incumbents and negotiated a fair rate based on the numbers they received.
Shakey
Site Supporter
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I interviewed someone out of Transplace, and they did use data to sell their broker services.
Lucky you must have gotten out before BluJay E2open; they ripped through a couple
of our US-based clients
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Really depends on the strategy - have seen some clients take rate increases after RFPs as well...so many variables.
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No doubt that they share data, but if the relationships aren't there on that end it doesn't really matter.
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Absolutely. I’ve had a couple of my big accounts “uberized” over the last year. Uber provided the bid platform and my customers invited their 100 plus carriers and brokers to bid, round one through three. By the time all was said and done the rates accepted were so low you’d think it was 1930. Initially I had pretty much given up on both accounts, but as it turns out nobody could provide service at those low rates, and most loads are now spot quoted. I like that better, but sometimes it takes the better part of a week for customers to decide which bid to accept, and then the load becomes hot. Personally I would wish that these bid platforms would go away to allow carriers and brokers to provide reasonable rates that work as opposed to garbage rates that were low 50 years ago.
Every account I have seen Uber managed gets destroyed. They are heavy handed and do not care about the carriers.i have first hand seen them award work as a primary and then take that away and give to a broker at a cheaper rate. When they get full control and not just the bid management component they take your communication away from the shipper and make you deal with them. But they sell a fancy report card analytic bs to them about all the money they are saving them. It disgusts me
I would love for a president/VP that make the decision on using Uber/ any other 4PL to give a candid interview after a few years.
I feel like their "image" of how the supply chain network works vs realty would be polarizing.
I think that is one thing Uber does very well, the sell a story to the higher ups.
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All of these consultants operate the same way. They all claim to have a “magic system” that results in dramatic savings. At this point upper management is ready to sign a contract with no further knowledge required as to how these savings will be achieved. Traffic departments, shipping personal will all raise concerns, but they fall on deaf ears in this mad pursuit of cost reductions. Within a few months of the start of the “ new program”, rates are placed back on the spot market and customers are upset over poor service with deliveries. In spite of all the razzle dazzle, dog and pony show antics, these programs are nothing more than a simple race to the bottom that could be easily accomplished by hiring a couple of high school students to administer.
well they approach the C-suite executives with fancy presentations about service, analytics, and savings and it gets pushed down to the Transporation group at which point there is nothing they can do. I have heard over and over about “the directors mandate want to recoup some of the high transportation costs from 2022” over and over again from many Fortune 500 companies and smaller.
I suppose when these executives see an opportunity to save and make themselves look good for their own self benefit can’t help but say yes
I have heard plenty of transportation managers say they are wasting 100k+ on these bids. Some have corporate policies of having to bid their work every year.
It’s the new norm and Uber has been successful with it though acquiring some of these bid platforms and I won’t be surprised if we see more. I’m sure their own fleet and autonomous trucks are part of their long term play.
The same thing is happening with all these shippers wanting P44 and tracking.
