Industry Insights & News

How to Manage Market Volatility With Mini RFPs

April 28, 2023

In the current climate, rates are constantly fluctuating, and it can be difficult to predict when and how costs will change. That’s why many shippers are turning to mini Request for Proposals (RFPs) as a way of managing their shipping costs more effectively. 

What is a Mini RFP? 

Instead of entering into an annual contract with your carrier, you can negotiate short-term agreements that last anywhere from a few weeks to several months. This gives shippers much more flexibility in terms of managing shipping costs and allows them to make changes quickly if the market changes out of their favor. 

Benefits of Mini RFPs 

Mini RFPs offer a number of benefits over traditional long-term contracts. Instead of being locked into a rate for an entire year, shippers can adjust their rates on a regular basis based on current market conditions. Furthermore, since mini RFPs are shorter in duration than traditional contracts, they also allow shippers to take advantage of new technology or industry innovations more quickly and easily than with long-term contracts. 

How to Get Started With Mini RFPs 

If you’re considering entering into mini RFPs with your carriers, it’s important that you approach them carefully and respectfully. Make sure that both parties understand the value proposition behind the agreement and work together to create a deal that’s fair for everyone involved. Additionally, be sure to establish good relationships with your carriers so that when the market inevitably turns again, you have strong working relationships in place that will help ensure success down the line.  

There’s no denying that market volatility can create major challenges for shippers trying to manage their costs effectively. Fortunately, there is an option available that could help mitigate some of these risks: mini Request for Proposals (RFP). By negotiating short-term agreements with their carriers instead of locking into annual contracts, shippers can gain much more control over their shipping costs while still remaining flexible enough to make changes if needed. Just remember to approach any negotiations respectfully and build solid relationships with your carrier partners so that when things turn around again, both parties are well-positioned for success.

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