The Secret, FREE Trick to Improve Carrier Tender Acceptance on ANY TMS!

You’ve implemented a TMS to (among other reasons) automate the tendering process.  If you’re like many shippers, you’ve set up a low-cost automatic tendering sequence in each lane.  The cascading automation of the low-cost tendering process is explicitly designed to get your loads accepted, in the timeliest manner and by the lowest cost carrier available.  So it is beyond frustrating when, in spite of all your efforts to implement tendering automation tools in your TMS, low carrier acceptance levels eat deeply into your lead times and expose your freight to higher cost carriers. Or even subject you to the premium rates of the spot market.  Want to know a secret trick for improving carrier tender acceptance using any TMS?

There is a commonly encountered feature of the modern TMS application which, if leveraged in a smart way, can optimize your carrier tender acceptance levels and deliver on the TMS’s promise of longer lead times and lower freight spend.

I am speaking of the humble carrier scorecard like the ones UltraShipTMS provides.  “Where’s the secret in that” you might ask? After all, most TMS solutions already offer carrier scorecards as a feature.  Carrier performance scorecards are commonly used to measure KPIs for such functions as spot quote activity, EDI compliance, check call compliance and timeliness, on time delivery performance, driver performance, and yes, you guessed it, tender acceptance.  But simply having a means for collecting this data does not necessarily translate into action.

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This simple, no-cost strategy works beautifully to ensure the longer lead times and lower freight costs promised by TMS is actually delivered.

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The fact is you are not getting everything you can out of the scorecard if you are only sharing it with your carriers’ operational team.  Here’s the critical piece of this secret trick.  Carrier sales staff can be very effective agents for the shippers they sell into; but only if they’re given visibility into tendering activity. The carrier’s salesperson is a completely overlooked stakeholder in this equation.  Shockingly, most shippers overlook what could be the most potent advocate they could have within their carriers’ respective organizations.

Think about it this way.   Carrier sales reps are subject to quarterly/annual reviews wherein their success or failure is used to calculate their compensation.  Nothing provides a more powerful incentive for salespeople to ensure the capacity they’ve promised to shippers is delivered.  If a shipper provides access to the carrier scorecard (specifically the metrics on Tender Accept/Reject volumes) on a weekly basis, it gives the salesman the ability to advocate for the shipper and press their operations team to boost acceptance levels.  (Note this trick also works with On-Time Performance metrics).

What UltraShipTMS has learned over decades in this industry is that carrier salesmen will often agree to move a set number of loads in a given lane for a shipper.  Yet, when the agreed-upon tenders are issued via TMS automation, they are not always accepted.  What’s worse, the carrier salesman has no way of knowing that his commitment to the shipper/customer isn’t being honored by his operations department.  If carrier sales agents are provided a view into tender acceptance (or lack thereof) figures, they can effectively pressure the appropriate persons in their operations department to ensure the commitments they’ve made are being satisfied.  On a more long-term basis, access to the performance metrics they’re monitoring via the carrier scorecard also provides leverage to the carrier salesmen to keep his operations staff within acceptable tolerances.  It is as much a win for the carrier as it is for the shipper.

This simple, no-cost strategy works beautifully to ensure the longer lead times and lower freight costs promised by TMS is actually delivered.

 

 

 

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