Highly successful shippers blend contractual and on-the-spot coverage through mini-bids and dynamic contracts—insulating efficiency and revenue from sudden market volatility.
By addressing the inflexible nature of RFPs and dynamic procurement, carrier contracting can absorb mid-cycle market shifts without breaking contractual caps or service guarantees.
Shippers overcome the challenges of rapid-cycling market conditions using a balanced mix of fixed and flexible logistics contracting solutions:
- RFPs define your contractual baseline.
- One-load spot posts cover the unexpected.
- Mini-bids refresh problematic lanes mid-cycle.
- Dynamic contracts tailor rates despite market shifts.
This fits market research predictions and findings saying that dynamic, auction, and spot mechanisms control costs and cut instability. ShipperGuide enables shippers to diversify procurement strategies and manage planning, bidding, booking, tracking, and scaling within one platform.
Explore the optimal mix of contract methods for your team to streamline quote time, conserve freight spend, and steer rate decisions.
What Are Mini-Bids vs. RFPs?
RFPs typically establish baselines for long-term bids and contractual agreements, often lasting 12 months or more and aligning with seasonal cycles. In contrast, mini-bids are shorter in duration—sometimes weekly or monthly—and are usually event-specific, designed to drive competition and enable rapid lane adjustments in the short term.
RFPs are best when networks need a structural reset. Mini-bids are ideal for tactical recalibrations—such as adjusting rates or carriers on problem lanes or accommodating seasonal shifts.
While RFPs cover annual goals, mini-bids offer agility for weeks and months. Both are essential tools for balancing cost optimization and service performance.
What Are Dynamic Contracts?
Dynamic contracts introduce pricing formulas into agreements, linking rates to external indexes or margin structures.
For example, a dynamic contract might set truckload rates as index + margin, with floor and ceiling bands to prevent extreme fluctuations. This allows rates to flex with the market while maintaining budget predictability and carrier commitment.
Traditional fixed contracts don’t adjust when markets change, often leading to strained relationships or budget variance. Dynamic models build resilience by updating automatically and preventing large pricing gaps. Research shows hybrid dynamic and spot auction strategies improve acceptance, reduce budget variance, and increase speed to market.
Choose the Best Freight Procurement Model with ShipperGuide
ShipperGuide allows you to overcome high-stress manual quotes and the fragility of fixed, static, and inflexible RFPs. Using a single workflow, you can optimize bids, rates, and contracts to outsmart volatile markets.
Before market storms hit acceptance, raise variance, and hinder gains, reinforce your procurement process using ShipperGuide. Book a free demo today!
