Singular Request for Quote (RFQ) sounds like it is a good idea. A request for quotation (RFQ) is a standard business process whose purpose is to invite carriers into a bidding process to bid on specific for your business. RFQ generally means the same thing as IFB (Invitation For Bid).
When a company receives a single RFQ, the base rates associated with an individual carrier can vary as much as 8-10% from client to client, so even receiving the highest discount may not ensure receiving the best price for each shipment. This does not take into consideration fuel surcharges (FSC) and accessorials.
For example: a preferred carrier provides a client with an 80% discount, which makes it appear as the lowest RFQ compared to a competitor that only offers a 78% discount. However, the carrier offering the 80% discount’s actual base rate price is $1,100 versus the 78% discount quote which has a base rate price of $1,000; therefore the discounted pricing is as follows:
$1000 x 80% = $220.00 before fuel
$1000 x 78% = $220.00 before fuel
Note that the price is the same although a better discount is provided. Therefore, if one company has a better fuel discount or accessorial, it can provide a lower cost despite the higher discount. This is why competitive analysis provides lowest pricing every time. Despite discounts, lower fuel surcharges, waived or repriced accessorials, N2TMS ensures that your lowest cost is always ranked #1 inclusive of FSC and accessorials.
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