Is Your Freight Spend on Track? Key Questions to Ask Before RFP Season

Summertime may be when the living is easy, but it’s also when smart shippers take a hard look at the freight rates they’re paying and their strategy going forward. 

WSI Sales Manager, Scott Van Zeeland and WSI Freight Brokerage Leader, David Stone, recommend a mid-year check-in to reveal opportunities and plan for success in the coming RFP season.  

Do a mid-year freight rate check 

Doing a mid-year freight rate check seems like a natural action to take, but it’s not always the case for shippers.  

At the seven- or eight-month mark, you can get a good read on whether the rates you’re getting are saving you what you thought they would, and that you understand your freight charges. At this point in the year, there’s still time to make changes, fine-tune, or validate decisions made. Moreover, Freight rates remain volatile as global conflicts, shifting trade policies, and tariffs disrupt traditional shipping lanes and cost structures. In this environment, conducting a mid-year freight contract check is essential to uncover savings opportunities and ensure your strategy aligns with today’s rapidly changing market. 

Van Zeeland and Stone advocate making a data-based inquiry into RFP performance and taking a read on the service you’re receiving.  

Now’s the time.  

“Hey, if you didn’t get what you wanted out of the RFP, there’s still a way that you can turn things around and not to give up on your year,” Stone adds.  

Essential questions for mid-year 

• What part is not working on your RFPs?  

• Did you choose the wrong carriers?  

• What is your tender acceptance rate and why are carriers rejecting tenders? 

• If you chose carriers based on lowest rate, is service suffering?  

• If you chose based on service, are you missing out on significant market savings?  

• If you brought in new carriers, have they gotten up to speed on your business? 

• Are you putting a substantial amount of freight onto the spot market?  

• What freight is going on the spot market? 

Make course corrections 

When costs aren’t matching what shippers planned to save through contracts, it’s time to have a hard conversation with carriers.  

If a low tender acceptance rate has forced you to put a lot of freight onto the spot market, you have options to help get back on track. One is looking at the carriers you’re running with from the spot market and deepening your relationship with them. If they’re doing a good job, you may want to pull them into your contractual rates, Stone says.  

Alternatively, shippers may want to turn around and do a mini-RFP for a lane or for a short time period. This is a growing trend these days, according to Van Zeeland.  

RFPs have changed and there is more fluidity in their timing and scope today. Market and supply chain uncertainties necessitate it. And technological advances in everything from accessible analytics to timesaving RFP platforms enable it.  

Shippers can and should use the summer to optimize their transportation costs in the short term as well as the long term. Van Zeeland and Stone recommend using the time to ensure your data and analytics are in order for the next RFP season. There’s plenty to do to prepare, even if you’re on target with your projected costs and no correction is required. 

Remember, Q4 and the coming RFP season are only a few months away.  

Prepare for the coming RFP season 

The better you plan, the better your chances of achieving your goals in the coming RFP season. Done right, and you’ll have the dependable transportation you need and predictable costs all companies want. Done wrong, and shippers face higher than expected costs, chaos that drains internal resources, and executed routing guides that quickly become useless. Use the summer months to set the stage for RFP success: 

Know your objective. Start by reviewing where you stand on price and service. If your business prioritizes value, you may best target carriers offering the lowest rates. If you offer a premium product, you may be justified in paying more for transportation that provides better service, performance, and visibility. Affirming your procurement strategy before RFP season will help aid decision-making. 

Know the market. Research the historic and going spot and contract rates for the lanes you run. Stone says one of the biggest mistakes is to not look beyond rates from the trucks you’re currently running. “Trust the data and engage with folks that have that data so you can understand your lanes and your business a little bit better,” he says. It’s also essential to understand potential threats to your transportation budget. That way, you can proactively adjust strategy, prioritize the right lanes, and avoid reactive, costly decisions under pressure. Understanding these risks, such as rising spot market use, low tender acceptance, or service failures, equips you to negotiate smarter contracts and secure more stable, cost-effective freight partnerships. 

Know your own data. Tap into your TMS or spreadsheets for comprehensive and accurate volumes, projections and performance figures. Know your priority key performance indicators (KPIs) that are relevant to potential partners. Data is king, Stone emphasizes. The more data you can provide and the greater its accuracy, the higher the quality of the bids you will receive.   

Gather your data 

The better the details provided to carriers and freight brokers, the more accurately they can bid projects. Every detail matters and details that are left out can add to costs later on. Use the summer months to drill down into your operations, gather facts, and gain a greater understanding. 

Providing full details pays dividends during RFP season. It will prevent potential surprises once a bid is awarded, and it can help save your time and the carriers’ time in the RFP process. Be sure and provide data related to: 

1. Project scope, including lane, volume, stops, and freight type  

2. Frequency and schedule of shipments 

3. Appointments or open windows for pickup and delivery 

4. Wait time and demurrage averages 

5. Weekend or after-hours pickups or deliveries 

6. Average shipment weight, dimensions, commodity type, and packaging 

7. Average or target lead time provided to carriers 

8. Expectations and KPIs used in evaluation 

9. Shipment seasonality 

There’s still time to make an impact 

Transform your RFP process by downloading our Complete Guide to Freight RFP Success. Our experts share insights into how to put freight out to bid and receive quality bids back in return. It addresses everything from RFP best practices and trends to helpful technology and essential data points.  

And if your contracts and carriers are falling short at the midway mark, talk to the WSI team about your options.