Definition
Tender season refers to the period of time when companies (shippers) open bids or proposals for transportation and logistics services. This is a crucial time for logistics providers as they have the opportunity to bid for contracts and secure business with various customers.
Process
The tender season typically starts with companies (shippers) releasing a request for proposal (RFP) or invitation to tender (ITT) for their logistics needs. This document outlines the specific requirements, expectations, and criteria for the logistics services they are looking for.
Interested logistics providers then submit their bids or proposals, which include their proposed solutions, pricing, and other relevant information. The companies or organizations then evaluate the submissions and select the most suitable provider for their needs.
The tender process may involve multiple rounds of bidding, negotiations, and clarifications before a final decision is made. Once a logistics provider is chosen, they enter into a contract with the company or organization for the agreed-upon services.
Importance
Tender season in logistics is a crucial time for both companies and logistics providers. For companies, it allows them to find the best logistics solutions for their needs at competitive prices. It also ensures transparency and fair competition among logistics providers.
For logistics providers, tender season presents an opportunity to secure new business and expand their customer base. It also allows them to showcase their capabilities and expertise in providing logistics services.
Key players
There are several key players involved in the tender season:
- Companies (shippers): These are the customers looking for logistics services and issuing the RFP or ITT.
- Logistics providers: These are the companies bidding for the logistics contracts.
- Third-Party Logistics (3PL) providers: These are companies that specialize in providing logistics services on behalf of other companies or organizations.
- Freight forwarders: These are companies that arrange the transportation of goods from one place to another on behalf of their clients.
- Customs brokers: These are companies that assist with customs clearance and compliance for international shipments.
Conclusion
Tender season is a critical time for both shippers and logistics providers. It allows companies to find the best logistics solutions for their needs, while providing an opportunity for logistics providers to secure new business and expand their client base.