3 Tips for Conducting an "Unconventional" Sourcing Event

Jul 5, 2017

 

Recently, I heard a great quote: "Conventional thinking will produce conventional results."


This week we celebrated July 4th, Independence Day. In reflecting on the meaning of this holiday I couldn't help but think: There was nothing conventional about the thinking of the founding fathers when they established the United States of America. And today, we are the beneficiaries of their "unconventional" thinking.

As experts in conducting world class sourcing events, we know the benefits that companies can realize by thinking "outside the box" when it comes time to conduct their sourcing events. All too often, we see companies do the same thing they've done in the past and then wonder: "Why aren't we getting better results?"

So before you conduct your next sourcing event, here are a couple of practical tips to consider:

  1. Understand that each carrier has a unique footprint and some of these footprints are more advantageous for your business than other footprints. For example, instead of assuming that a national carrier can handle all your lanes in the same manner, analyze which regional carriers should be included in your bid based on their ability to handle preferred routes.
  1. Focus on the quality of data included in your bid packages. You don't want carriers to give you "play it safe pricing." According to the CEO of one of the world's largest LTL carriers, that is what happens when the data included in your bid is inaccurate or insufficient and the carriers are unsure about what kind of freight they’ll will be getting. If you want to attain a competitive advantage, give the carrier accurate and comprehensive data.
  1. What requirements are you expecting your carriers to meet? What are your customers and suppliers expecting from your carriers? Can you answer some questions such as, what happens when a truck pulls up to your dock or leaves your dock with freight outbound to a customer? And what happens when your carriers show up to your suppliers. The answer to these questions can have a huge impact on the kind of rates that your carriers are giving you.

If you’re looking for more resources to help you conduct a great sourcing event and to secure competitive rates, we encourage you to take a look at our white papers including the popular resource Carriers’ View of Carrier-Friendly.

We provide all of this because we’re on your team, we’re here to help, and we’re passionate about seeing you succeed. If you would like to get in touch for any reason, please give us a call at 630-833-0890 or send us an email.