The situation
A strong carrier, a cheaper broker and three issues that only move together.
Tender awards are where buyers have the most leverage and often waste it, by awarding volume before rates and capacity are settled. The call tests whether you trade the three issues against each other.
- Your role
- Logistics procurement lead at a manufacturer
- Counterpart
- Gary Mitchell, Sales Director, Alvenro Freight
- The account
- Road-freight tender for 12 European lanes, about €3.2m a year
- Starting position
- 60% of the volume at bid rates, indexed quarterly, 80% peak guarantee
- Your mandate
- No more than 50% to one carrier, a 95% peak guarantee, 3% off the bid; a two-year award is yours to offer
- Time
- Up to 10 minutes of live voice negotiation