Insider Blog

Bid$ense® Provides a Much-Needed Freight Procurement Tool in Turbulent Times

It’s safe to say August was a turbulent month for the less-than-truckload (LTL) industry in the wake of one of the most dominant carriers shuttering operations. Other carriers have picked up the overflow and seeing a spike in daily shipments; 30,000 impacted truck drivers are searching for new jobs; and shippers are navigating a new, uncertain freight landscape.

Freight Procurement Software Built for This Moment

SMC3’s Bid$ense freight transportation procurement software is the right tool, in the right place, at the right time. Covering both LTL and truckload, Bid$ense is a freight transportation RFP automation and technology that allows shippers and 3PLs to manage bid events from a single portal. Using the software, they can bid out freight to a wide range of carriers and broaden the scope of each sourcing event—which benefits all parties.

Advantages for Shippers

Using Bid$ense technology gives shippers more control and insight into their freight procurement. They can incorporate pricing as well as performance metrics like transit times into bidding analyses to better prepare for and administer a standard RFP. As a conduit between shippers and carriers, the technology simplifies the RFP process by automating, facilitating, and managing the freight procurement process for both parties.

Bid$ense seamlessly integrates with existing systems and allows shippers to quickly select and stage the best options by lane transportation. This is especially important with the turbulent shift the industry now faces. The technology typically delivers cost savings for shippers—an average of $150,000 per $1 million in freight spend. With Bid$ense, shippers have access to more than 500 LTL carriers and more than 1,000 truckload carriers—and receive an average of 30 carrier responses to bids.

Benefits for 3PLs

Likewise, Bid$ense helps 3PLs gain efficiencies in freight procurement for large clients or groups of smaller clients. As more and more carriers are added to the freight procurement platform, 3PLs create more competition and, therefore, a more aggressive RFP process for their clients.

Especially in this new, more challenging landscape, 3PLs can use Bid$ense to get a holistic view of carriers’ service qualifications so they can better negotiate on behalf of their clients. Currently, hundreds of 3PLs in North America rely on this SMC3 technology—and others—to stay ahead of industry issues and the seismic challenges in the marketplace being experienced now.

The Upside for Carriers

It might seem counterintuitive that carriers would be fans of Bid$ense since it can result in sizeable savings for shippers. But carriers want transparency about the freight they can transport and the technology delivers just that. Carriers receive a complete, accurate picture of a shipper’s freight through Bid$ense, which allows them to plan and pick freight that best fits their networks and allocate freight where it’s most needed.

Using bid automation software, carriers can infuse efficiency into their network planning which, in turn, results in better service and potentially lower rates for shippers—a win/win for both parties. The Bid$ense platform offers increased pricing flexibility—empowering carriers to provide lane-specific discounting and be more granular in their bid responses.

Bid$ense in Action

There have been many Bid$ense success stories since its introduction to the freight procurement industry nearly 20 years ago. It has automated previously manual, time-consuming tasks for many shippers and 3PLs and provided access to a large network of carriers to increase choice.

Using Bid$ense, shippers with many locations have been able to centralize transportation decision-making and achieve significant dollar savings, along with time savings in IT, freight payment, and procurement departments.

The Way Forward for Freight Procurement

Many larger shippers foresaw the potential shuttering of a major LTL carrier and began shifting their freight to alternate carriers in the weeks leading up to the official closure. Brokers and the spot market were also seeing increased activity, making the eventuality less surprising. Now in the aftermath, many shippers are bracing for and in some cases already noting higher freight costs.

Going forward, shippers and 3PLs can leverage SMC3’s Bid$ense freight procurement platform to bring clarity to freight procurement options and streamline freight sourcing processes to achieve greater transportation optimization.

Contact SMC3for more information about Bid$ense.

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Categories: Carrier Relations, Data, Freight, Logistics, LTL, Supply Chain, Transportation, Truckload