Transportation Subcontracting RFP: A Comprehensive Guide for Small and Mid-Sized Businesses

A poorly prepared transportation subcontracting request for proposals leads to inadequate bids, cost overruns, and weakens your entire supply chain. Here is a step-by-step method for thoroughly preparing, launching, and evaluating your process.

What are the 7 steps to take before launching your transportation request for proposals?

1️⃣ Analyze your scope

Identify the workflows that should actually be reevaluated: some custom workflows pose a risk of disruption without guaranteed cost savings.

2️⃣ Define your requirements precisely

Document your operational requirements: the more specific they are, the more comparable the bids you receive will be.

3️⃣ Submit a preliminary request for information

The request for information (RFI) is an exploratory phase, conducted prior to the actual request for proposals, that allows for the evaluation of available service providers and their actual capabilities.

Although often overlooked, it sharpens your understanding of the market and enhances the competitiveness of the proposals you receive during the next stage (the RFP).

4️⃣ Define your evaluation criteria

Set your metrics before receiving bids, so you can analyze them objectively:

5️⃣ Understanding the Dynamics of the Freight Market

Transportation rates are influenced by several factors:

A rate obtained during a period of overcapacity is not sustainable in the long term: opt for contracts that are neither too short nor too long, to strike a balance between stability and rate flexibility.

6️⃣ Prepare the contractual and legal framework

Anticipate clauses that could cause friction after signing:

7️⃣ Calculate the total cost of ownership (TCO)

The listed price represents only a portion of the actual cost. Be sure to include the following in your comparison chart:

This TCO calculation reveals the actual savings offered by each plan, beyond the list price.

What criteria should you consider when choosing the right transportation partner?

Once you have received the proposals, your selection of a partner should never be based solely on the quoted price. Here are the criteria to consider to ensure an objective decision:

This set of criteria, applied before any final negotiations, ensures you make the right choice and minimizes the risk of unpleasant surprises after the contract is awarded.

What’s the alternative to a competitive bid: entrusting your shipping needs to MTI Express?

Conducting a transportation RFP requires time and expertise that SMEs and mid-sized companies often lack. MTI Express offers you a simple alternative: immediately take advantage of a network of qualified carriers without having to manage the RFP process.

By entrusting your shipping needs to MTI Express, you’ll streamline your operations while benefiting from a network of qualified carriers and customized support.

FAQ – Frequently Asked Questions About Transportation Subcontracting Bids