CombineNet Presents 5 Tips To Prepare For Ocean Freight Negotiations And Contracting
CombineNet Inc., a provider of online sourcing technology solutions for global supply chains, is offering 5 tips designed to help ocean freight shippers prepare for the upcoming negotiation season. Based on years of experience helping organizations reach the full potential of strategic sourcing across billions of dollars of transportation spend, CombineNet’s tips for ocean sourcing will assist shippers in preparing for the sometimes difficult process of negotiating the best carrier contracts with the lowest risk.
“One of the most important steps in preparing for carrier negotiations is understanding where and how your organization can benefit from the myriad of options they may bring to the table. Our customers have shared their experiences with us over the course of sourcing billions of dollars in ocean freight, and we’re sharing some of those market insights as shippers begin preparing for the ocean freight contracting season,” said Rich Wilson, Chief Executive Officer of CombineNet. “Our contribution to the industry knowledge base underscores the importance of being flexible in ocean freight shipping, while illustrating the leverage that flexibility can bring to the negotiation process.”
The company’s e-sourcing product, CombineNet ASAP, is used by companies to source everything from office supplies to complex services, and is considered one of the leading solutions for managing complex transportation sourcing activities. Working with the world’s largest shippers and carriers over the years has provided CombineNet with insight into a wide variety of successful transportation sourcing strategies, and the company recommends that shippers and their stakeholders review the following before the first ocean freight bid is even requested:
Equipment options: something as simple as moving from a 40-ft container to two 20-ft containers can make a difference in cost, service and drayage options.
Alternative ports: Shipping to or from alternate ports on the same coast can provide cost savings opportunities, as carriers with excess un-contracted capacity at these alternates will price competitively.
Cost breakdowns: what couldn’t be negotiated yesterday is now, in a soft market, “up for grabs.” The little things, from drayage to bunker charges to assessorial costs can make a big difference.
Services levels: frequency of sailing days, transit times and on-time delivery commitments can sometimes be worth a cost trade-off, particularly if the alternative is a late shipment with a low-cost carrier.
Carrier scorecards – software makes it easy to bring key performance indicators to every meeting with a carrier — which helps immensely with negotiations.
CombineNet has published a white paper detailing the potential benefits of reviewing these options when preparing for the upcoming ocean sourcing season. “Ocean Sourcing: 5 Tips to Prepare for Ocean Freight Negotiations and Contracting” is now available on the CombineNet website.