Freight Rate Negotiation

Rate Negotiations

Rate Negotiation2019-04-02T09:32:14+00:00

You know the countless hours, spreadsheets, emails and phone calls that are involved every year working with transportation providers to establish new rate bases.  It’s a never ending process whereby no two spreadsheets are the same and you are constantly comparing apples to oranges in trying to determine the optimum provider for any given lane.

This is why you should utilize nVision Global’s rate negotiations services and software.

We provide software, service or a combination of both.  Our services include an nVision Global team that will work with the you to establish key project goals and objectives, establish the selected transportation provider base and build your project to your specific needs.  Once the project is created, we’ll work with you and your transportation providers throughout the bidding and tender process until everything is complete.

Our Procurement software is a web-based solution that provides an easy-to-use interface that allows transportation providers to see the available lanes, submit their bids and for you to analyze these bids in one place.  There is no comparing of spreadsheets or trying to compare one provider’s rates to another where they don’t exactly line up.  Those days are gone!  Learn more about our Procurement solution HERE

Rate Negotiations Include the Following

  • Review of your current negotiated rates
  • Possible benchmarking of your rates against like companies/lanes
  • In Depth conversations/review of your upcoming shipments and lanes
  • Utilization of the nVision Global Procurement Solution
  • Import and visibility of all rates and lanes in the Procurement Solution
  • Coordination and discussion of rates and lanes with your Transportation Providers
  • Train your Transportation Providers how to Submit their Bids Using our Procurement Solution
  • Ensure the Procurement Project is Completed and You Are Updated the Entire Way
  • Review all Transportation Provider Bids with You and Suggest the Optimal Provider Matrix
  • Work with the Selected Transportation Providers to Verify Rate Procurement
  • Possible Creation of a Routing Guide from Selected Transportation Providers

Business Case

SITUATION

This is the situation a customer was facing and why they turned to nVision Global's Procurement as their solution
  • A large pork exporter was paying too much Full Truck Load (FTL) shipments
  • Management mandated a decrease in suppliers and expenses
  • With plants in separate countries, each plant had their own transportation providers
  • The last FTL procurement project took six months!
  • Their goals were to finish the project within 60 days, decrease the provider base by 40% and reduce FTL freight costs

SOLUTION

This is how nVision Global's Procurement Application provided the solution that our customer required.
  • Developed a strategy using regional issues such as different ERP platforms, non-EDI providers, provider history, etc.
  • Managed the entire tender process, except for provider selection and final negotiations
  • Built a custom tender template to ensure that providers’ bids were submitted in a single format/controlled bid form
  • Ensured that only ‘vetted’ transportation providers were considered in final negotiations

RESULTS

The results of this project were even more than our customer had expected!
  • Resulted in an 8% savings (€2,000,0000+) in just European FTL spend
  • Completed in less than 60 days
  • Reduced the carrier base by more than 50%
  • Enabled our client to negotiate effectively as our Procurement Solution gave them the entire bid ranking organized so they could easily pit providers and their offerings against each other by lane or region