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Carrier Management and Freight Procurement

How to run a freight bid and manage carriers so awarded rates and service actually materialise.

By SupplyChain.management · Last updated

Definition

Carrier management is the ongoing process of selecting, contracting, measuring and developing carriers across the lane network.

Why it matters

Awarded rates only deliver if volume, tender acceptance and service are managed after the bid.

Example

A lane-level bid across 22 carriers awarded primary and backup carriers per lane, with tender acceptance and OTD reviewed monthly.

How to interpret it

Falling tender acceptance is an early warning that awarded rates are below market and service is about to degrade.

How to improve it

Bid at lane level with accurate volumes, name backup carriers, and hold monthly scorecard reviews on OTD, acceptance and claims.

Common mistakes

Awarding on rate alone and never measuring whether the carrier accepted the freight it won.

Related KPIs