Enterprise shippers only chose the lowest spot market freight bid 25% of the time, showing a preference for a carrier with high quality service instead of always opting for the lowest rate, according to PostBidShip.
Using historical data, PostBidShip found that the second lowest bid was awarded 55% of the time. Other bids were selected 20% of the time. PostBidShip is a spot market freight platform provider, serving the
"We see that a high percentage of shippers aren't selecting the lowest bid; instead, they are choosing to work with high-quality carriers they have confidence in," said Sam Levin, chief executive officer of PostBidShip.
For its platform, PostBidShip has a comprehensive review process to ensure carriers meet high standards for safety, operating authorities, insurance coverage, the customer rating system and other factors that reflect a commitment to quality. Shippers can form their own custom network of PostBidShip carriers who are invited to bid, or they can access the entire network.
PostBidShip released a new version of its application that supports API integration with any transportation management system. Subscription-based PostBidShip hosts reverse auctions for spot market freight, creating a marketplace for shippers and carriers but is not involved in the transactions as a broker.
"Our platform's ability to seamlessly integrate into any TMS application provides a clear piece of functionality that fills a gap in the TMS market," said Michael H. Murphy, chief technology officer.
The new system will replace manual bidding and acceptance, allowing enterprise shippers to capture data from every bid, not just winning ones. Shippers are able to build analytics from their spot shipping offers that show how many carriers bid, how fast the carriers responded, the spread of the bids and other intelligence.
"Shippers using manual processes only capture a fraction of the information available to them," said Murphy. "Now they'll have analytics on their spot shipping bids that they can use to make business decisions."
For carriers, the intelligence built into the system will push notices of available loads for backhauls based on the loads already in transit.