Sector Insights: Logistics RFP Guide

June 26, 2019

Logistics RFPs: A guide to bidding in the logistics sector

What to expect from a logistics RFP

Logistics RFPs come in all different shapes and sizes. The logistics sector consists of many different areas. It can range from things like supply chain management, right the way to passenger transport. The North American logistics market is set to be worth $1,254 billion by 2025. It’s a growing and ever-changing market. Below are sector insights toward securing success when developing logistics RFPs.

Investment in technology  

Technology is growing at a rapid rate in modern society and this rapid rate of growth. It’s affecting the way we work, allowing us to work with greater ease and efficiency. Whilst pretty much every sector is being shaped by this growth, one sector that’s seeing large changes is logistics.

As multi-disciplinary RFP Writers ourselves, we are seeing more and more cases where companies must evidence their use of technology. Not only this, but also detail the benefits this will bring to buyers. Below are examples of technology that’s becoming more and more common in the logistics sector. Knowledge of these technologies can benefit your chances of RFP success.

Vehicle tracking software

This is crucial for any logistics company that transports goods from one location to another. Whether you are a haulage company transporting large amounts of goods, or a smaller removals company using a van. Investment in this type of technology can be crucial in seeing success in transport tenders.

Let’s say, for example, you are submitting an RFP for furniture removals. Buyers will likely ask for you to evidence how you ensure products are collected and delivered safely and on time. Having tracking software will allow you to showcase that you can monitor and track items in transit effectively.

This will also allow you to showcase that you can monitor delivery times. It will provide evidence to the buyer of your efficiency levels.

This type of software is crucial in seeing success as many of your competitors may already have this in place. Failing to showcase that you have this may result in you losing crucial marks.

Route optimization software

Having this in place can be crucial. Particularly if you’re looking to drive down fuel costs and positively contribute to the environment.

Transport contracts will often ask you to showcase how you will ensure items are delivered and/or collected on time. You should factor in any traffic you may come across.

Government transport contracts will often include questions regarding how you deploy staff. By having this software in place, you can score highly by outlining your use of the above software. You can detail in your response how this ensures you attend the site in a timely fashion.

It’s becoming more and more common for logistics RFPs to ask for ways in which you reduce your carbon footprint. Having route optimization software in place allows you to evidence the ways your company actively aims to reduce its emissions. By using this software, you can identify the fastest and most effective route.

Cities have more than 50% of the population worldwide. Research has shown that this figure is set to grow to 60% by 2030. This rise in population causes a bigger challenge to transport companies in trying to overcome this congestion. For example, let’s say you’re a delivery company bidding for work in New York. This can play a crucial part in your evidencing ability to deliver the services. 

Elastic logistics

The term ‘elastic logistics’ may seem alien to you, and there is a good reason for this. This term is something that’s rising and becoming more common. This is due to increased integration with technology across the logistics sector as a whole.

Essentially, elastic logistics means the ability to expand and shrink logistics capabilities. This is done to align with the demands of any given logistics situation.

For example, this may involve things like market fluctuations or greater demand for a certain product. Flexible and adaptable cloud-based solutions will allow you to keep up to date with these changes. It can prevent you from falling behind technological advancements.

This, of course, would be impossible without digital software. Being successful in writing logistics RFPs will rely upon your ability to keep up with market fluctuations and consumer demand.

For example, if a buyer is tendering for you to deliver a parcel to customers, they’ll want to see evidence. This evidence should include how you’ll keep up with any market advancements that occur.

Consumers in the digital age want things quicker and will be less willing to wait for delivery. This is especially relevant with giants like Amazon paving the way for rapid delivery.

You must have some software in place that showcases you can adapt and react to demands. It will ultimately ensure that you do not fall behind in transport tendering for your logistics RFPs.

What actions should you take?  

Ultimately, if you are wanting to succeed and stay relevant in the logistics sector, software is a crucial component. Key actions you can take to strengthen your chances in logistics RFPs are as follows:

  • Research your software

Conducting thorough research is key when securing software for logistics companies. With hundreds of thousands of offers out there, you must choose what is right for you and your company’s ambitions. If you’re tendering for the collection and delivery of crates, you’ll need to consider what crate management software you’ll use.

  • Look for scalability

The term ‘scalability’ essentially means a certain piece of software’s capability to handle growth and expansion. In the digital age, nothing stands still, and neither should your software. Ensure that this has the capability to grow and change as your clients, customers, and company’s needs change.

  • Research your competitors

Understanding your competition can allow you to understand what you are up against. It can allow you to plan your bidding approaches more strategically. One way you can do this is by looking up contract award notices through websites. Understanding your competitors in this sense can provide you with an insight into what level of technology other companies use. Do a bit of digging. See what it is that gives that company the edge and see how you can provide a more enhanced service.

  • Adapt and integrate

Whether you agree with the direction technology has led us down boils down to personal opinion. But what cannot be avoided is change, growth, and integration with technology. Government bid writing, in general, is requiring suppliers to showcase innovation. The best advice we can give to companies looking to expand is to integrate and adapt. Be more open to new avenues for technological growth.

What to expect from a logistics RFP

The questions asked for a logistics RFP will depend on the commissioner’s needs and will vary from tender to tender. However, some examples that could be asked are as follows:

  • Business history
  • Coverage area
  • Fleet size and network size
  • Motor carrier number
  • Certifications
  • DOT and safety ratings
  • Claims records
  • Insurance cover
  • Risk management
  • Continuous improvement methodology
  • Commitment to innovation.

A logistics RFP will always contain the terms and conditions for submission. A buyer will often note whether they are negotiable or not. The documents will likely contain:

  • General terms and conditions (GTCs)
  • Payment and billing terms
  • Standard operating procedures (SOPs)
  • Contract terms and service-level agreement and contract duration if the contract is awarded
  • Acceptance rates
  • On-time pick up rules
  • On-time delivery requirements
  • Technology requirements.

Detailed freight characteristics

Buyers should detail the freight characteristics to allow a vendor to provide an accurate quote for your services. You will likely find the following detailed in the tender documents:

  • Commodity types
  • Cargo value
  • Average weight per load
  • Primary and secondary equipment types
  • All ZIP and postal codes (origin and destination) information for all lanes
  • Seasonality or variability
  • Clear instructions on the lanes up for bid.

In conclusion

It’s crucial that you can provide buyers with clear and transparent ways to track and evidence the services you provide.

Buyers are seeking more innovative ways suppliers can provide their services. This is something that’s becoming more and more common with every bid we write. We understand that many companies don’t have the spare time and resources to reactively respond to RFPs. If you need to write an RFP cover letter, you can download our free template to help get you started.

Here at Hudson, our expert team of RFP Consultants are on hand to provide advice to you. We hold an 87% success rate and have over 60 years of collective bid writing experience.

Looking for support with your next bid?

Sometimes you just don’t have the time, resources, or experience to formulate a winning response. Luckily for you, we provide three bid and RFP writing support services. Our Bid Writing Consultants have over 60 years of bid writing experience and an 87% success rate. We can help you see success with your next bid.

Our services

RFP Writing

Our RFP Writing service is the perfect solution to ensure that you submit a high-quality bid, even when you’re busy. Our RFP Writers will break down the solicitation documents, allowing you to see what the bid and the contract involves. This will help to ensure that you have all the specified evidence and meet the requirements of the contracting authority. Our RFP Writers will then craft persuasive, high-quality responses, attach supporting evidence and even submit the bid on your behalf. Upload the solicitation documents for a free quote.

RFP Mentor

Have you already written a bid but need a second pair of eyes to review your work? Our RFP Mentor service will do just that. Simply send over your bid responses and the solicitation documents. Our writers will then assess your work, ensuring that your responses are in line with the specification. They will also check for any spelling or grammar errors. You can then submit your bid with confidence. Upload your work for a free quote.

Proposal Ready

Do you need help with preparing a bid proposal? Proposal Ready can help businesses that are new to tendering or those in need of rejuvenating their content. Our Bid Consultants can offer you proposal writing services, creating:

  • 3 designed and company-branded case studies
  • 5 company branded and professionally designed resumes for key personnel
  • 1 company-branded bid proposal credentials document that can be used to respond to future RFPs.

Find more helpful tips and advice in our blogs. We cover topics including:

 

All information and data on this blog site is for informational purposes only.  Hudson Outsourcing LLC make no representations as to accuracy, completeness, suitability, or validity, of any information.  Hudson Outsourcing LLC will not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use.  All information is provided AS IS with no warranties and confers no rights.

Hudson Outsourcing LLC will not be responsible for any material that is found at the end of the links that may be posted on this blog site. 

Because the information on this blog is based on Hudson Outsourcing LLC’s own opinion and experience, it should not be considered professional financial investment advice.  The ideas and bidding strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  Hudson Outsourcing LLC’s thoughts and opinions will also change from time to time as the market changes and as Hudson Outsourcing LLC develops.

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