In a world where speed, accuracy, and efficiency dictate the success of global logistics operations, mastering rate management isn’t just a skill – it’s an art form. With airlines representing well over 50% of global air freight capacity already digitized and available for digital booking (and with the industry now moving to full-digitization), relying on outdated rate sheets and manual quoting processes is like trying to win a race with a horse and buggy.
This isn’t theory; it’s grounded in hard-won experience. With over one million rate sheets digitized, a million platform-wide transactions, and billions of dollars in freight managed, we’ve seen firsthand how the death of the traditional rate sheet is already upon us.
Efficient rate management across contracts, promo, and dynamic rates becomes more challenging as pricing tech evolves. While rate sheets aren’t going anywhere soon, what’s changing is how they’re used – making visibility across all rates from a single platform that supports the modern needs of forwarders and the carriers they work with more critical than ever. Modern forwarders (and carriers!) recognize this and are looking for rate management systems that recognize it too, and build out the ultimate rate management strategy for the current hybrid rate reality.
Broadly, this looks like integrating both live market rates with dynamic pricing from carriers and negotiated rates, so forwarders can swap out the spreadsheets and emails with a lightning fast search. The right systems can then incorporate all relevant surcharges and fees, pulling it all together into branded quotes. All that’s left is for the customer to click “book.” It’s implementing these best-in-class digital tools and practices that has let forwarders unlock the unprecedented levels of agility, visibility, and profitability that drive a 12-15x ROI for forwarders.
Data: The Lifeblood of Decisions
Your data is the fuel that powers every smart decision you make. Without top-notch, up-to-date data, you’re flying blind. Here are three key ways to to keep your data sharp and actionable:
Audit Rate Sources: Ensure your data platform is accurate and up to date. Audit your rate sources and frequency, including your ability to receive real-time rate updates from participating carriers. Explore rate update frequencies and integrations regarding contract or BSA ratings on a per-carrier basis.
Equip the Team: Make sure your pricing and operations team has the appropriate tools to handle the cadence of updates so that you’re not missing out on opportunities or encountering operational issues.
Market Intelligence: Leverage increased market transparency by comparing your rates with broader market benchmarks. Freightos Terminal delivers real-time, customizable rate data across multiple lanes, integrated with transit time updates and a live feed of key events impacting the market. WebCargo’s dynamic quoting tool lets forwarders share quotes with multiple rate types, giving their customers the option to view and compare the latest dynamic rates.
Implement these, and you’re set to dominate with data that keeps you informed, agile, and ahead of the competition.
Leverage an End-to-End Digital Rate and Booking Solution
Best-in-class tools provide visibility and intelligence, along with the ability to generate, customize, and send quotes easily. These tools allow forwarders to share managed access to self-serve rate searches with agents and customers, make real-time bookings for many rate types, and even extend that booking capability to customers. Combining visibility and actionability is key. To make your life easier, here’s what your next freight rate management RFP should probably include, beyond the key nuts and bolts.
Essential Features Include:
Comprehensive Buy & Sell Rate Management
Real-Time Data Pulls for Dynamic Rates
Integrated Analytics and Market Intelligence
Automated, Rule-Based Quote Generation
Dynamic, True-to-Market Pricing
Managed Access for Agents and Customers
Multilingual Capabilities
Expert Support and Best Practices Consultation
Seamless Integration with Booking Platforms
Deepdive: Unleashing the Power of Digital Rate Management
Unlocking the full potential of digital rate management means leveraging advanced tools and techniques to streamline processes, enhance efficiency, and gain strategic insights.
From effortlessly navigating through various rate types and accurately estimating market rates, to crafting custom quotes and staying ahead of pricing trends, digital platforms offer a comprehensive suite of features. These tools not only increase win rates and customer satisfaction with fast, accurate quoting but also transform the booking process into a seamless, instant experience. Here’s how forwarders can tap into these powerful features:
Buy & Sell Rate Management: Total Control, All in One Place
Whether you’re dealing with market rates, promotions, contracts, BSA, or spot rates, the right rate management tech gives you the power to manage every type of rate seamlessly. No juggling multiple systems or losing track of critical pricing data. All your buy and sell rates are in one place, ready for instant access and updates. This means you’re always ready to react, whether you’re negotiating a new contract or adjusting to a sudden market shift. It’s rate management how it should be: simple, fast, and smart.
Imagine having the most up-to-date rates from global airlines at your fingertips, updated in real time, for real-time decision-making. That’s the power of live data pulls. Spot rates, dynamic pricing updates, and real-time market conditions are no longer a guess – they’re a guarantee. As soon as a rate changes, you see it, so when the market moves, you move with it. Instantly.
Integrated analytics, benchmarks and market intelligence
Data is great, but insights are the real differentiator. With integrated analytics, you can benchmark your rates against the market, uncover trends, and identify fresh pricing opportunities before your competitors even know they exist. Whether you’re fine-tuning your pricing strategy or responding to a market event, you’ve got the market intelligence to make decisions that let you deliver strategic, competitive, and profitable rates that close deals.
Automated rule-based and customizable quote generation
With automated, rule-based quote generation, you set the parameters, and your rate management system delivers quotes that are perfectly aligned with your pricing strategy. Need to customize? No problem. You’ll be able to tailor each quote to match specific customer needs or market conditions in seconds, delivering precision-crafted quotes that close deals with an increased win rate of up to 3%.
Dynamic quoting, extending the value of true-to-market pricing through to customers
With dynamic quoting, rates will include the static rate initially sent to the customer but also gives them the power to refresh and get the latest rates in real time, complete with a predefined markup. It’s the ultimate in transparency and customer service.
These features make digital rate management a powerhouse for forwarders, enabling them to operate with greater efficiency, accuracy, and strategic insight. By fully embracing these tools, forwarders can unlock new pricing opportunities that make sure they aren’t just keeping up, but setting the pace.
