Navigating Today’s LTL RFP Environment & Approach

As we all know, today’s LTL market environment consists of tight capacity, supply chain disruption, and rising rates. While there’s no end in sight – and most experts believe the pendulum won’t shift until late 2022/early 2023 – it’s never too late to begin thinking about what your next RFP might look like. Now is not the right time to go out and search for new agreements with carriers. However, that time will come, and preparation and thoroughness will be the key to successfully searching out new carriers, new pricing, and a more consistent LTL program.

With that in mind, we’ve developed a list of 12 things that every LTL shipper should consider before putting an RFP together. They are:

Once the above is determined, it’s important to compile all the necessary data that will be important to the carriers you submit the RFP to. The more comprehensive the data, the better responses you will receive. When carriers receive limited data, they must err on the side of caution and more than likely will either pass on bidding, or they will submit very conservative pricing.

With that in mind, there are 7 things you specifically need to know about your business before you send out the RFP. They are:

So, why look to Green Mountain for LTL RFPs? We look at the shipper/carrier relationship differently than most. We base our recommendations on strategy, efficiency, and cost effectiveness. For example, one of the biggest myths in LTL shipping is that “the more you ship, the better your discount will be”. The truth is, with large, mega LTL shippers, once past a certain point of diminishing returns, the volume becomes a much smaller factor in determining rates. At this point, the best deals result from taking a deeper look at data, shipping characteristics, and determining how they match up against carrier cost drivers, network capacity and its own unique needs. Whether you’re looking to develop long-lasting strategic relationships with your LTL carriers or have a need to expand/contract your LTL carrier network, Green Mountain has a solution for you.

Let us help you prepare for the future. If you have any questions, or would like more information, please reach out to us at Green Mountain for a brief meeting where we can explain all our offerings.

Jim Badovinac
Vice President – LTL Solutions
Green Mountain