Is your tender strategy keeping pace with a volatile market?

"Are the processes you installed a decade ago still aligned with the current market?" This compelling question from Thorsten, VP of Strategic Alliances at Xeneta, set the tone for a thought-provoking webinar focused on how companies can better navigate the increasingly volatile logistics landscape.

Hosted by Xeneta in collaboration with Keelvar, the "Optimizing Tender Strategies with Xeneta and Keelvar: Secrets to Securing the Best Rates" webinar delved into the secrets of securing the best rates through optimized tender strategies. Here are some key questions that came to mind during the session:
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What’s driving the need for a new approach to market volatility?

Thorsten highlighted the significant volatility in the shipping industry, especially since the onset of the COVID-19 pandemic. He noted, “The last four years have seen extreme volatility, making it far more difficult to agree on contracts that remain valid for the entire period.”

This reflects the challenges companies face with traditional long-term contracts, which can quickly become outdated in a rapidly changing market. Dylan Alperin, VP of Services at Keelvar, echoed this sentiment, adding, “Volatility is probably the new normal, but it probably was the old normal too. It's just more volatile now.”

“Volatility is probably the new normal, but it probably was the old normal too. It's just more volatile now”

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Why is dynamic market sourcing a game-changer?

Dylan introduced the concept of dynamic market sourcing, explaining how it allows companies to adjust contracts more frequently based on real-time market data. He emphasized, “Instead of being a passenger in this journey, put yourself in the driver’s seat. You're in control now.”

By leveraging platforms like Keelvar, businesses can conduct monthly or quarterly rate reviews, ensuring they are always in line with current market conditions. Thorsten supported this approach, noting, “With smart strategies and the right solutions at hand, you can fix some of your problems more easily and avoid ongoing discussions if your cargo is getting shipped or not.”

Learn more about dynamic market sourcing in this free eBook
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How can data-driven decisions boost your bottom line?

A significant portion of the webinar was dedicated to demonstrating how integrating Xeneta's market data with Keelvar's sourcing platform can empower logistics managers. Thorsten highlighted the importance of using accurate, lane-specific data to inform tender strategies, saying, “The better you're informed, the easier it is to make changes later on.”

Dylan elaborated on this by showing how Keelvar users can adjust their strategies dynamically, stating, “This is based off the real data from real forwarders and carriers, helping you stay ahead of your competitors.”

This data-driven approach enables companies to react quickly to market shifts and optimize their procurement processes.
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Can automation make your sourcing process more efficient?

Both speakers emphasized the importance of reducing manual workload in the tendering process, which can be achieved with the help of automation. Dylan remarked, “Everybody's getting asked to do more with less. This is an avenue to do that.” He demonstrated how Keelvar’s platform can automate rate adjustments, reducing manual workloads and allowing teams to focus on strategic decisions.

Thorsten reinforced this point by noting that “A lean process, accepted on both sides, is key to making it work.”
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What’s the future of tendering in an ever-changing market?

The webinar concluded with a discussion on the future of tendering. While annual RFPs are still relevant, both Thorsten and Dylan agreed that their role is evolving. Dylan put it succinctly: “The annual RFP is not dead. Long live the annual RFP. We're just changing the positioning of that RFP.”

"The annual RFP is not dead. Long live the annual RFP. We're just changing the positioning of that RFP”

Thorsten concurred, suggesting that companies should integrate dynamic sourcing into their strategies to minimize risk and stay competitive. He concluded with the reminder that “You can’t avoid paying more if the market is up by 30%, but with the right approach, you can avoid friction and ensure your supply chain remains uninterrupted.”

In summary, the key to securing the best rates in today's market lies in embracing flexibility, leveraging data, and automating processes. As Thorsten aptly put it, “In today’s market, you need to be agile and well-informed to succeed.”

If you’re looking to improve your tender strategy and stay ahead of the market, now is the time to explore how you can leverage technology and data. Learn more about the powerful integration between Keelvar and Xeneta by checking out this detailed datasheet.