Truckload Bids

In a Supply Chain Digest video conference, MIT’s Chris Caplice, Executive Director for the Center of Transportation and Logistics at MIT, said something that was surprising. Studies show he noted that over a third of the time the winning bidder in a truckload bid never sees a shipment on the lane it won.

The major problem seems to be execution. It is possible to make a great strategic plan but not be in tune with the realities of actual operational practice. How can you avoid this issue?

Be sure your operational people are consulted regularly and as part of developing strategic plans and transportation bids.  Chris Caplice makes an additional point that understand how your organization handles the inevitable changes in the transportation environment, either through flexibility such as alternate supply source contingencies or  establishing extra capacity, sort of a transportation safety stock.  Probably in the day to day world, specific effort to develop a strategy in these areas may not have been done.

Doing the above will create a realistic bid which would give the firm the best opportunity to enjoy the benefits of the process.

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