The time of week a shipper tenders can also impact acceptance and cost. Additionally, some carriers offer lower rates with more lead time. The MIT study suggests that “increasing average lead time to five or more days will markedly reduce transportation costs.” While that lead time may not be feasible for all shipments, most experts agree that a lead time of 24 to 72 hours is crucial for tender acceptance. A study conducted at MIT found that “the more time a carrier has between the tender and pickup day the more likely the first carriers in the routing guide are to accept the load.” The first carriers in the routing guide are usually “first” because they have the best prices and services and are, therefore, more desirable choices. Lead time is one of the main factors influencing the pricing of a shipment. Give Carriers as Much Lead Time as Possible Here are some key principles to keep in mind when load tendering: Tender rejection can lead to lengthy shipment delays, extra expense, and logistics nightmares.
The supply chain challenges of the last two years have demonstrated why the use of best practices is imperative at every step of the logistics process. In addition, load tenders can prevent confusion if any claims have to be settled regarding lost or damaged goods. Load tendering is important in logistics because it helps shippers to control costs and to assure contract compliance. When a bid is accepted, the carrier must honor the price and the volume commitment for the length of the contract. The shipper then chooses the best bids based on cost, schedule, etc. Carriers may reject the load tender request, but interested carriers respond with a bid.
Load tenders include essential information, such as a detailed description of the items being shipped, the dates and times for the cargo to be picked up and delivered, the addresses for pickup and delivery, and an estimate of total cargo weight. The process begins when a shipper submits a request, or tender, to one or more carriers. The carrier is an individual or company that specializes in transporting cargo (also called freight) from one place to another. The shipper may be a manufacturer, a retailer, a 3PL, or anyone else wanting to transport goods. Simply put, load tenders allow a shipper or broker to offer cargo to multiple carriers in order to secure the best rates available.
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