Securing Capacity in Real-Time: Spot Pricing vs Dynamic Pricing

Most shippers believe that utilizing a spot auction portal to secure capacity for uncovered loads is the solution to deal with routing guide gaps. Spot auction can be effective but it is often over used and sometimes unreliable.

When shippers know that thousands of their shipments per year will not be covered by their awarded primary providers it is more strategic to implement a contingency plan designed to secure extra capacity resulting in far fewer loads going to spot.

One way to compete against traditional spot is to activate API pricing which allows for far greater design around which shipments go to API and who gets to quote.

In this session you will learn:

• Why spot market is not a solution, it is the absence of a solution. Spot market is traditionally a space where the most difficult loads to cover are sourced to transactional providers who do not know a customer's supply chain needs well resulting in volatile prices and volatile service levels.
• How utilizing API dynamic real-time pricing creates a space which is a more effective at implementing a strategic design around which loads go to API and who gets to participate. This is a space where strategic partners play and shippers can intentionally divert more volume to a carefully curated community of their highest performers and incorporate more KPI considerations into shipment awards.
• How activating and implementing API capabilities is fast and easy on most large-scale enterprise TMSs. Most large TMSs already have the capability of communicating with an external rate engine and individual customer configuration is a small and sometimes complimentary last step.