Transportation Tendering Through a Freight Exchange
Purpose
Freight exchanges provide their members, who can be either shippers or forwarding agents, with the service of interactively bargaining on prices and transportation conditions. The shipper and the forwarding agent receive information on prices and conditions, and they can come to an agreement, just like in the real marketplace. As soon as the shipment is confirmed, the freight exchange issues an invoice to the shipper and pays the forwarding agent.
Transportation planners can use the freight exchange service in particular for smaller shipments in order to find a forwarding agent who can include the shipment in a load that is not fully used up (LTL) and therefore demand a more reasonable price. Shippers can work together in an SAP System and a freight exchange through the Internet. In this way, the transportation planner can use capacity to the fullest, thus lowering shipment costs. The transportation planner also always has an automatic update of the shipment status.
Prerequisites
You can make all the necessary settings in the Implementation Guide (IMG) under Logistics Execution ® Transportation ® Shipments ®
Configuration of Transportation Processing for Forwarding Agents.Process Flow
Transportation tendering through a freight exchange:
The procedure is the same as the one described in
Tendering Shipments for Service Agents. The freight exchange is simply treated as if it were a forwarding agent.