Best Practices in Truckload Sourcing


The strategy behind moving raw materials and finished goods from one place to another has been one of the challenges faced by suppliers, manufacturers and retailers since the dawn of commerce. Most consumers take for granted that the items they want to purchase will just be waiting at the locations they want to go to buy them – but the process of getting those items there can be extremely complicated. Long gone are the days when supply chain organizations simply offloaded full responsibility for shipping their wares to their in-house drivers and fleet of company-owned trucks and assumed that their goods were being moved as efficiently and effectively as possible.

Instead, the strategic sourcing of logistics has emerged as a competitive differentiator, with shippers more invested than ever in ensuring that their goods are transported with maximum efficiency. The best performing organizations have hundreds of variables to worry about, ranging from assessing carrier capabilities and carbon footprints to available transport capacity, lead times and route optimization. Strategic sourcing has become Advanced Sourcing, as organizations have expanded their thought processes to include questions such as:

  • How will we define our shipping lanes, and what level of information is important to carriers?
  • What bidding tactics should we employ, and what are the types of carriers (and proposals) we want to attract to participate in our sourcing project?
  • What level of information is important to our business, and how will we evaluate this information?

Here at JAGGAER, we work with customers daily to address these challenges. In fact, our Advanced Sourcing Optimizer solution is used for 600+ transportation sourcing events per year, helping customers manage more than $15 billion in annual transportation spend. JAGGAER enables customers to gain a complete understanding of the impact that sourcing decisions have across the entire business.

I recently participated in a webinar with our friends at SupplyChainBrain where I was joined by folks from Big Heart Pet Brands and Transplace where we discussed some of the best practices for truckload sourcing and strategies that can lead to more successful sourcing events.  If the questions above are being asked within your organization, I’d encourage you to check it out here.

What are you doing to ensure your organization is sourcing the right transportation events? What best practices can you share?  Join the conversation on Twitter at @JAGGAER.

[Image: David Guo via Flickr]

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