Don’t Skip the RFQ While Social Distancing

Many branches of global logistics have been slowed by COVID-19, but social distancing shouldn’t stop you from conducting the essential request-for-quote process.

COVID-19 has become an invisible roadblock for supply chains around the world. Unless your logistics are tied to providing services for one of the 16 essential sectors, your business may well have come to a complete halt. We can look to China’s current situation for a silver lining on why commerce is set to resume with a boom, and why U.S. suppliers should continue to prepare for the logistical future by safely conducting their next round of RFQs.

• The projections for a return to business as usual

• Social distancing and business struggles

• Getting RFQs right during the outbreak

• Why now may be the perfect time for an RFQ

• Where to learn more about safe and responsible RFQs at a distance

The projections for a return to business as usual

Logistics insiders are certain that the world will return to normal purchasing patterns as soon as COVID-19 sanctions are lifted. This means that logistics chains in China and elsewhere will spring back to life and are likely to be working overtime to satisfy consumer demand. Businesses that manage to survive the pandemic will need their usual supplies quickly to return to service.

However, your business may be one of the many that were reliant on Chinese logistics connections. You may have to start looking for solutions in areas outside of China. This is where the Request for Quote (RFQ) can really work in a shipper’s favor, but only if you conduct it correctly and safely.

Potential logistics partners, who themselves have likely lost a great deal of money during COVID-19, will be eager to secure all the business they can to claw back the losses. It’s a perfect bargaining position for a shipper to be in — you have the pick of the crop amid high competition. Shippers will keep their staff and their bottom lines healthy if they follow social distancing rules when vetting potential candidates.

Social distancing and business struggles

Social distancing, which is different from isolation and quarantine, is intended to dramatically slow the infection rate of COVID-19. The practice takes several forms. Individuals may work from home, maintain a clear distance of 6 feet between other people when outside and refrain from handshakes, hugging and other forms of physical social contact.

Social venues like gyms, hospitality spots and religious areas are increasingly off-limits as every state drafts its own no-contact directives. The fact that social distancing is working can be proved by looking at two of the hardest-hit regions. From Hong Kong to New York, officials are praising the practice and asking that it be maintained until further notice.

The nationwide death toll is lower than expected thanks in large part to social distancing. Nobody wants to get sick, but businesses are looking for any way to keep their heads above water. Shippers are lucky because one essential part of their operations, the RFQ, can still be conducted at social distance.

Getting RFQs right during the outbreak

At Resource Logistics, we’re able to get the whole RFQ prepped and ready to go for our clients while strictly adhering to social distancing requirements. Our wealth of experience in this role means we’ve successfully negotiated RFQs for other clients and that data can be used as a benchmark for your pricing.

We’ve perfected the RFQ into a 15-step process that suits all modes of transportation and lets us help your company conduct the process from start to finish. The entire process can be handled electronically or via no-contact communications like phone calls.

Being wholly data-driven, there’s no need for in-person conversations. The process is more a review of candidates, backgrounds and proposals than a binding contract requiring signatures and handshakes. Even when a contract is awarded, electronic signatures are as valid as physical ones.

Our RFQ process provides you with all the candidate data you need to make an informed vendor decision. Our state-of-the-art technology includes a business analysis tool that gives you the complete picture on every candidate, including hidden and costly details like accessorial charges, location requirements and tariffs. We can also assist you with bidding out warehousing and logistics technology solutions.

Now may be the perfect time for an RFQ

Many logistics partnerships will be broken or put under the microscope during this pandemic. Whether you must find someone new or have decided you aren’t sufficiently supported by your current partner, Resource Logistics can help you gather a pool of new possibilities.

It’s a time where many shippers will be panicking and may signing deals they’ll come to regret. Our data analysis and years of experience can give you the calm and informed perspective necessary to make the most healthy, profitable decision in these unprecedented times.

Connect with us to learn more about safe and responsible RFQs at a distance.

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.