DAT iQ Optimizes the RFP Process
Analytics from DAT iQ take the uncertainty out of every step of the RFP process.
Crafting a transportation RFP is a time- and resource-consuming undertaking with high stakes. And while RFPs create contracts between shippers and carriers that are binding in price, they’re not binding in volume or capacity, further complicating the matter.
Some shippers simply choose carriers that bid the lowest rates, but this often costs more in the long run. Low contract rates during times of tight capacity can lead to an increase in tender rejections, as carriers look to the spot market for more profitable opportunities.
As recent events have demonstrated, pandemics, wildfires, supply shortages, weather events, and other disruptions create wild market swings. How can the RFP process be optimized to create a routing guide that’s predictable and stable?
Accurate and timely analytics from DAT iQ take the uncertainty out of every step of the RFP process—from preparation to evaluation to awarding—allowing shippers to secure capacity at prices that will last the lifespan of the contract.
With a database of more than $110 billion in annual freight invoices, analytics from DAT iQ allow users to account for seasonal impacts of supply and demand when preparing their RFPs. With 13-month histories on more than 68,000 trucking lanes, shippers using DAT iQ can pinpoint times of tight capacity, which allows them to prioritize lanes and create clear objectives for your RFP. For lanes with lower volumes, DAT iQ allows shippers to aggregate lanes geographically to make bids and evaluations faster and easier.
For new lanes, DAT iQ provides insights into carrier activity along with detailed pricing histories and forecasts, helping shippers expand their network with clear budget expectations.
During the evaluation phase, shippers with DAT iQ products can be much more prescriptive with their feedback. Rather than simply responding to carriers with a target price, shippers can offer more context to meet service requirements. The Ratecast model from DAT iQ forecasts rates with over 95% accuracy across more than 7 million daily predictions, providing transparency to your negotiations and a single source of truth. This awards freight to the right carriers at prices that will hold throughout the life of the contract.
Once the routing guide is in place, shippers can benchmark performance against the broader market. This allows them to review, analyze, and adjust routing guides, identifying opportunities to reduce costs or anticipating when they’re at risk for higher spot market premiums.
With DAT iQ, shippers are able to create a more thoughtful RFP that streamlines the evaluation and award process—creating a routing guide that offers predictability and stability.