Index-Linked Contracts: A New Solution for Shippers’ Dissatisfaction with RFPs

It’s no secret that the traditional RFP freight procurement process is rife with inefficiency, and even when agreements are made, rates can still vary widely throughout the term of the contract. To better understand the key pain points that shippers and carriers have with the RFP process, we analyzed the results of multiple FreightWaves surveys to pinpoint the key areas of frustration and outline a better path forward.

This white paper outlines the findings of these surveys and poses a potential solution in the form of index-linked contracts, whereby rates are tied to a real-time market indicator that moves up and down. By tying long-term freight contracts to market-based price indexes, both parties can transact with the confidence that they’re getting a fair deal while ensuring that service levels remain high. The paper also features an example of how L’Oréal is using index-linked contracts in their own organization and the results they’ve seen so far.

Complete the form to download the complimentary white paper today.



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What's the SONAR ROI?

By increasing the number of loaded miles per day your drivers drive by 1% and your rate per mile by $0.03 you will make more per week #WithSONAR.

#WithSONAR you can save up to per week through better bid negotiations and more effective management of your routing guide.

#WithSonar you can add 1 more load per person each day and increase $5 margin per load, earning your company an extra per week.

Disclaimer: Every company’s circumstances are unique. Fixed and variable expenses, market conditions and operational factors vary. Unforeseen events may also affect results. Calculated potential results reflect the consensus expectation of FreightWaves’ experts. Actual results may vary.

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