{"id":30232,"date":"2021-12-16T00:00:00","date_gmt":"2021-12-16T00:00:00","guid":{"rendered":"http:\/\/test.tranistics.com\/nvision\/2021\/12\/16\/on-demand-quoting-reverse-auction-answers-to-your-faqs\/"},"modified":"2026-02-03T05:59:31","modified_gmt":"2026-02-03T05:59:31","slug":"on-demand-quoting-reverse-auction-answers-to-your-faqs","status":"publish","type":"post","link":"http:\/\/test.tranistics.com\/nvision\/2021\/12\/16\/on-demand-quoting-reverse-auction-answers-to-your-faqs\/","title":{"rendered":"On-Demand Quoting & Reverse Auction: Answers to Your FAQs"},"content":{"rendered":"

On-demand quoting and reverse auctions are two useful tools for controlling shipping costs in the spot market. But shippers sometimes struggle with these scenarios because they\u2019re used to working exclusively with contract carriers. If you find yourself fielding spot market quotes for a one-off shipment, consider using these tools to secure the best possible rate from a non-contract shipper.<\/p>\n

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How Does the Reverse Auction Work?<\/h2>\n

Reverse auctions involve fielding bids by carriers to get the lowest possible price. In a traditional auction, the highest bid wins; in a reverse auction, the lowest bid wins.<\/p>\n

To facilitate a reverse auction, shippers share their shipment specifications\u2014including dimensions, equipment type, and pickup and delivery data \u2014 and the highest rate they\u2019re willing to pay. Carriers bid under this rate during a bid window, usually 30\u201360 minutes, with the winner subject to contract rights for that shipment.<\/p>\n

Reverse auctions are most effective in busy backhaul lanes, where competition tends to be higher and there\u2019s more rate fluctuation.<\/p>\n

Benefit for Shippers<\/h2>\n

On-demand quoting and reverse auctions offer several benefits for shippers. The most significant is the \u201crace to the bottom\u201d in terms of rates. Reverse auctions almost always ensure the lowest rates for shippers because carriers can view other bids and adjust their strategy accordingly. In some cases, on-demand quoting can result in 12-25% lower shipping costs<\/a>!<\/p>\n

Another chief benefit for shippers is the flexibility on-demand quoting offers outside of contracts \u2014 especially for specialty shipments. Instead of paying exorbitant rates for LTL shipments through a contract carrier, it\u2019s possible to field bids specific to that shipment and utilize the market as needed.<\/p>\n

Advantages of\u00a0 Using Online Tools<\/h2>\n

Modern reverse auction and on-demand quoting tools\u2014like those offered by nVision Global\u2019s IMPACT TMS<\/a> \u2014 offer a slew of automated processes that make it easy to quickly tap into markets and field bids. Through pre-set criteria and established rules, it\u2019s possible to recognize or eliminate bids automatically and to evaluate carriers without extensive manual input from shipping managers.<\/p>\n

Cloud-based systems also offer the clear benefit of broad availability. Shipping managers and teams can access them from anywhere, on virtually any platform. And they provide a ready view of relevant data to drive informed decision-making when time is of the essence.<\/p>\n

Should Shippers Go to the Spot Market Even When they have Contracts?<\/h2>\n

While contracts offer plenty of benefits to shippers, they\u2019re not a catch-all for every shipping scenario. What happens when you need to transport a specialty load? How do you navigate freight in a new lane? Does your contract provide the best price for a regional LTL shipment? The spot market affords you lane and price flexibility and makes it easy to find and contract new carriers<\/a> with capabilities outside your general needs.<\/p>\n

Using the Spot Market Wisely<\/strong><\/h2>\n

Most shippers will eventually need to rely on the spot market, and when the time comes, on-demand quoting and reverse auction tools are essential. Automation helps guarantee the best possible rates for shippers and takes the headache out of vetting bids in real time. With spot rates on the rise, these tools make it possible for shippers to continue moving freight without breaking the bank.<\/p>\n

Automation makes reverse auction and on-demand quoting a significant cost-saving opportunity. With the ability to instantly appeal to reliable carriers at the lowest rate, shippers avoid the back-and-forth of single-carrier bartering. And success in the spot market gives you the leverage to address contracts in a proactive way. To learn how nVision Global can help, visit our website at nvisionglobal.com<\/a>.<\/div>\n<\/div><\/div><\/div><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":31064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-30232","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-supply-chain"],"_links":{"self":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts\/30232","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/comments?post=30232"}],"version-history":[{"count":0,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/posts\/30232\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/media\/31064"}],"wp:attachment":[{"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/media?parent=30232"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/categories?post=30232"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/test.tranistics.com\/nvision\/wp-json\/wp\/v2\/tags?post=30232"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}