How to maximize value during tender season with dynamic market sourcing

In 2025, procurement teams are navigating unprecedented volatility, from escalating tariffs to geopolitical disruptions like the recent events in Israel. With this, tender season – when shippers, carriers, and logistics providers negotiate transportation rates and terms – will be harder to navigate yet being successful is more critical than ever as market uncertainty continues to rise.

Understanding Tender Season Today

Tender season typically kicks off in late Q4 or early Q1 for ocean freight, aligning closely with annual budgeting cycles and strategic planning phases. This period sets the stage for pricing and availability, significantly impacting supply chains throughout the year. In the current environment, marked by tariff fluctuations and disruptions caused by conflicts, the timing and strategy adopted during tender season can make or break procurement outcomes.

Previously, companies relied heavily on annual or semi-annual contracts with static terms, but traditional approaches no longer align with today's rapidly changing market realities. Agility is no longer optional, it’s essential.

Dynamic Market Sourcing: Adapting to Volatility

Dynamic Market Sourcing (DMS) emerges as a practical and essential strategy in this new landscape. Unlike traditional methods, DMS facilitates frequent, data-driven engagements with suppliers, enabling procurement teams to adapt quickly to market shifts. Instead of setting rigid, annual contracts, dynamic sourcing encourages regular, proactive market interactions.

Procurement teams using dynamic market sourcing can swiftly recalibrate their strategies in response to disruptions like tariff hikes, geopolitical tensions, or abrupt capacity constraints. By automating routine sourcing tasks and using real-time data insights, teams move beyond reactionary tactics, adopting strategic roles and managing risk proactively.

Why Automation and Optimization are Crucial

The increasing frequency of sourcing events required by DMS strategies may initially appear daunting, due to the potential of creating additional workload for procurement teams. However, advanced technologies, such as those offered by Keelvar, including Autonomous Sourcing and Sourcing Optimization, address these challenges head-on.

Autonomous Sourcing automates the execution of sourcing events, dramatically reducing manual workload. This allows procurement professionals to focus on strategic supplier relationship management and market analysis rather than getting bogged down in repetitive administrative tasks.

Sourcing Optimization enhances decision-making by enabling teams to analyze vast data sets and complex scenarios quickly. It evaluates both cost and non-cost factors such as sustainability, supplier reliability, and other risk-associated factors. Keelvar’s Intelligent Scenario Rules and AI-powered optimization ensure robust, informed decisions even under tight deadlines and volatile conditions.

Navigating Geopolitical and Tariff Volatility

The geopolitical climate of 2025, exemplified by persistent tariff volatility, further complicates procurement. Tariff uncertainty has driven procurement costs higher and strained supplier relationships, forcing procurement teams to reassess contracts more frequently and explore alternative sourcing options.

With Dynamic Market Sourcing, teams can:

• Continuously refresh rate structures to reflect current market conditions.
• Implement monthly or quarterly rate reviews rather than annual, static contracts.
• Proactively integrate third-party benchmarking to ensure pricing remains competitive.

This agility transforms volatility into a competitive advantage, empowering procurement teams to not just survive but thrive amid uncertainty.

Strategic Tendering: Practical Steps

To maximize value during tender season using dynamic market sourcing, consider these steps:

1. Annual RFP Reset: Use your annual RFP strategically to reset business terms and introduce flexibility in your contracts.
2. Automate Repetitive Sourcing: Identify routine sourcing events suitable for automation, freeing your team to focus on strategic sourcing.
3. Regular Market Engagement: Run sourcing events frequently to remain aligned with current market rates and capacity conditions.
4. Integration via APIs: Connect your sourcing solutions to existing ERP systems or benchmarking data platforms to enable quick, informed responses to market shifts.

Building Resilient Supply Chains

In today's unpredictable procurement landscape, agility, transparency, and responsiveness are foundational. Dynamic Market Sourcing, complemented by automation and optimization technologies, positions procurement teams to effectively navigate challenges like tariffs and geopolitical disruptions. As Dylan Alperin from Keelvar succinctly puts it, “Instead of being a passenger, put yourself in the driver’s seat. You're in control now.”

Adopting these strategies during tender season can help your business secure better rates, improve supplier relationships, and stay ahead in a rapidly evolving market.

For procurement teams navigating the 2025 landscape, embracing Dynamic Market Sourcing is not just strategic, it’s essential.