A Closer Look at Bid Analysis (10/28/24)

The internal and external benchmarks that any serious logistics bid should hit are standards RLG knows well

The global logistics supply chain connects the reputations of multiple companies intimately. No matter how high-quality the service of one company may be, the poor performance of a logistics partner can tarnish it by association. Knowing the key steps in mastering bids helps ensure that only the worthiest partners win a relationship with your organization.

In this blog, you will learn:

• Why knowing your current operation is critical

• The importance of proper time and data management on both sides

• The right factors to analyze in potential partners

• How RLG can bring every aspect of a bid together

Why knowing your current operation is critical

The best way to find the partner(s) offering exactly what you want is to know precisely what you need before bidding begins. Conducting a concentrated pre-bid analysis of your logistics operation will help set benchmarks for current logistics expenses and contract costs that providing valuable insight into which areas may be underperforming or overpriced.

Evaluating your current supply chain footprint via advanced logistics and supply chain analytics will reveal every possible opportunity for profit, as well as any weak spots where you may be losing money. A company cannot fully manage its bid analysis without knowing exactly where to look for every relevant metric.

The importance of proper time and data management on both sides

Businesses must prepare themselves to present their bids accurately to potential partners to ensure the data they get back is optimally actionable. This takes concerted internal review, data gathering and preparation time. The higher the quality of data provided to bidders, the quicker and more accurate their offers, and thus the bid analysis, will be.

Analyzing the data from potential partners requires an expert eye, and it helps to dedicate bid analysis and data management tools to arrange everything clearly. This makes all offers easier to review at a glance, both individually and compared to the competition.

Deeper bid analysis can take place when current operational expenses and bidder proposal data have been combined. Historic cost data is a good indicator of future spending, while any plans to expand can be compared to the bid rates on offer. How well bidders collect and present their own data can also be a subtle indicator of how well they use technology to innovate and improve within their own organizations.

The right factors to analyze in potential partners

Scrutinizing several key elements in potential partners greatly improves your chances of optimizing the bid analysis process. The first element to consider is thinking big: How well can a potential partner handle a significant increase in your business output?

During certain periods in the year, your growing reputation or external factors like consumer trends or market shortages can see a surge in demand for what you provide. If a potential partner cannot present credentials where they have capably handled surge events in the past, their inability to scale up on demand could cost you future profit opportunities.

A careful bid analysis weighs upfront freight rates heavily, but it also considers how accessorial charges play a part. Often overlooked factors such as stop charges, cargo insurance and the tricky area of fuel surcharges must be rooted out to benchmark the proposed rates of every bidder to see who is offering better overall terms.

Analyze the safety and customer satisfaction records of every bidder to identify how compliant they are with regulations and how happy current partners are with their service. Be wary of any bidder who doesn’t openly provide this data. 

Another important area of modern bid analysis is the environmental and social footprint of potential partners. Consumers are becoming increasingly concerned about how companies conduct their business and how it impacts ecosystems and workers. If you choose a logistics partner with less than commendable practices, you may inherit their negative public perception.

How RLG can bring every aspect of a bid together

RLG is dedicated to clarifying bid analysis for our customers, empowering them with the insight they need to make the right partnership choices by using powerful analytical tools. Our team can assist your company in performing a complete bid from beginning to end for all modes of transportation plus bidding out warehousing and logistics technology solutions through our extensive RFQ management experience.

RLG also understands that a bid process never truly ends; partners must be continuously monitored to ensure they’re providing the value they promised at the contract table. We can help maintain partner performance by providing ongoing logistics analysis with contract and pricing management that keeps a close eye on the negotiated terms.

Don’t let your next bid analysis be mismanaged. Ally with RLG to pinpoint your perfect partners.

Resource Logistics Group provides transportation and logistics advice combined with professional services and state-of-the-art technology. From contract negotiations to easing back-office burdens, we’re your ally in excellence. Connect with us on our contact page for a free benchmarking analysis.