Xeneta Blog

Why Freight Tenders Underperform — And What Leading BCOs Do Differently

Freight tenders often miss targets because shippers launch them without a market‑led strategy, treat all corridors alike, and rely on outdated benchmarks. Over‑engineered processes and insufficient competitive tension further erode pricing discipline, while an excessive focus on rates ignores service risk. Leading BCOs counter these flaws by establishing corridor‑level expectations early, limiting suppliers to credible alternatives, simplifying round structures, and integrating service reliability into the evaluation. They also embed execution checkpoints to adjust contracts as markets shift, delivering up to 25% spend reductions.