PostBidShip Study: Spot Market Shippers Choose Quality Carriers Over Lowest Price
SCOTTSDALE, Ariz., May 7, 2019 /PRNEWSWIRE/ — The lowest carrier bid wins spot market freight from enterprise shippers only about 25% of the time, reflecting the desire to select a carrier with a high quality of service rather than opting for the lowest rate, according to historical data from PostBidShip.
In reviewing data, PostBidShip found that the second-lowest bid was awarded 55% of the time and shippers opted for the lowest bid in only 25% of the awards. Other bids were selected 20% of the time.
“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 CEO Sam Levin. “PostBidShip uses a comprehensive review process to ensure our carriers meet the highest standards for safety, operating authorities, insurance coverage, our 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.
“With our stable of vetted carriers, we automate the process of selecting the right carrier for the job so shippers can be confident in a quality service regardless of carrier selection,” Levin said.
In April, 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,” Murphy said. “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.
Founded in 2010 as a business school project at The University of Arizona, PostBidShip has grown into a provider of innovative spot market freight technology platform serving the enterprise shipper market. Request a demo today!