Stale Rates Research: Benefits of a Freight Procurement Strategy

Freight Procurement Strategies for a successful and strategic bidding season

Transportation managers frequently debate the effectiveness of procurement events. Do regular procurement events help control transportation costs, or are frequent rebids a waste of time?

Deciding which viewpoint has the most merit would be easier if shippers had a better understanding of how carriers adjust and honor contract rates between procurement events. Of particular interest is how quickly freight rates become outdated or stale over time, and the reasons for this decay.

This white paper answers these questions, based on the results of Iowa State University research. Dig into what researchers discovered:

• When rates typically become “stale”
• Why regular procurement events lower costs
• What cadence to conduct procurement events
• How carriers adjust rates between procurement events
• How procurement events promote strategic relationships

Ultimately, a freight transportation procurement strategy based on a predictable schedule and process can deliver substantial cost savings and network efficiencies.