Increasing Logistics Efficiency with Spot Bid Tools

Mauser Packaging Solutions utilizes spot bid transportation technology to better control our freight costs and to improve customer service from our carriers.

Spot bid transportation is a one-time carrier bid issued to a shipper. Spot bids are often used for new/infrequent lanes and when additional capacity is needed at peak times. These bids tend to be the most volatile to market conditions and vary based on current carrier and demand conditions. A spot bid tool is a system that allows an organization to procure freight capacity and pricing on an ad-hoc basis. Freight bids are submitted to a predetermined list of carrier participants who then submit a price for that shipment (or capacity). The most competitive price is awarded the shipment.

Why does Mauser Packaging Solutions need a spot bid tool?

• At times, a shipment needs to be booked with short lead-time where the capacity of carrier in the route guide is already full.
• Route guides do not exist for every lane. Typically, this is due to low volume and the sporadic frequency of shipments on that lane.
• No route guide is 100% effective. When route guide carriers are unable to accept a shipment, we need supplemental carrier capacity.
• Spot bid technology provides a competitive bidding process to lower the spot bid rates.
• Spot bid technology will ensure that carriers included in the spot bid process have the required safety record, insurance qualifications and operating authority.
• Spot bid technology will ensure that carriers utilize Mauser Packaging Solutions Fuel Surcharge Program and accessories.

Benefits of using a spot bid tool?

• Financial savings – Spot bid tools create competition which drives down the cost of spot bids.
• Improved Efficiency – Bids are solicited from multiple carriers using one submission process.
• Service Improvement – Spot but tools enable us to quickly cast a wide net to many carriers, which allows us to have a truck where we need it exactly when we need it.
• Consistent Standards – Spot bid tools allow us to specify carriers that are included in our bidding process ensuring that potential carriers have the required safety record, insurance qualifications and operating authority.
• Consistent Process – By implementing a common spot bid tool for all business units, we can create consistency in our spot bid process across all business units and facilities.

The Small Packaging and Large Packaging business units utilize spot bid tools with the Transportation Management System (TMS) solution offered by TMC while the Reconditioning business unit is currently piloting a spot bid tool by CTSI.  Both tools are being monitored with the long-term goal of standardizing the spot bid process for all Small Packaging, Large Packaging and Reconditioning (North America).