How to Unburden Yourself from Endless Tactical Sourcing
With the balance of power so heavily shifted towards carriers in today’s logistics markets, transportation procurement professionals more than ever find themselves caught up in seemingly endless tactical activities and unable to find enough time to drive strategic category changes. Carriers today are unwilling to hold rates for one year and are often asking for quarterly, monthly, or even more frequent changes. Competition today is often more about the buyer needing to secure reliable capacity than about seeking the best rate.
Dealing with this deluge of work to constantly update rates, renegotiate, and re-award is taking up all of your sourcing team’s time and resources. It’s not the best use of their resources, of course, but how to break the cycle? The concept of re-running an RFP that took months seems daunting and would be infeasible to some on anything but an annual cadence.
Here are Two Ways to Escape and Get Ahead of the Game:
Our Sourcing Optimizer can be configured to automatically notify suppliers, open, close, and award rounds on a set schedule.
Here’s a use case example: Ocean carriers have requested monthly pricing and capacity updates, and the Category Manager needs to re-allocate among suppliers.
This will allow Category Managers to quickly and easily manage pricing updates and allocation changes while still managing their strategic supplier pool and reducing the RFP burden to a minimal amount.
This solution makes sure Category Managers still get the governance and control they are responsible for managing while empowering end-users to initiate and launch requests. Up to 90% of the tactical workload can be shifted to automation with this solution.
A use case example: A Transportation Coordinator has a new Ocean Freight lane from Shanghai, CN to Atlanta, GA USA.
As recent global events have shown time and time again, disruptions can be short-lived or extended for longer periods and create major change to resource demands. Keeping goods moving is critical, and for transportation sourcing professionals dealing with supply chain chaos, Keelvar’s Sourcing Optimization and Intelligent Automation solutions are being used by Keelvar’s global clients to navigate the complex and volatile logistics markets, so that they can get back to strategically managing their categories.
Talk to us today to learn how you can turn these solutions on for your team to save time, money, and headaches.