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.