How Planning & Optimization Can Redefine Freight Procurement

Contrary to expectations set by market volatility, freight procurement has never been easier or more effective, as long as you make use of the tools at your disposal.

According to a TalkingLogistics survey of supply chain and logistics executives, 56% of respondents either use a mix of manual and automated steps, or use mostly automation in the freight procurement process. It’s never been more critical for warehouse managers and supply chain directors to utilize these tools to streamline their operations and keep up with the competition.

In this post, we’re going to outline how freight procurement methods and tools have evolved in just the past few years—and how these innovations are empowering modern supply chain management. As procurement cycles get shorter, routing guide failures increase, and rate volatility pushes more shippers into the spot market, the need for smarter digital tools has never been greater. This breakdown highlights the specific technologies reshaping procurement today, making it easy for even newcomers to understand and capitalize on their benefits.

How Digital Procurement Is Evolving

Plenty of industries are being shaken up by the advent of AI, and digital procurement is no exception. Directly, AI has led industry leaders and strategists to develop ways to use artificial intelligence to automate manual processes such as freight sourcing and rate monitoring. Indirectly, the popularity of AI is leading warehouse managers and supply chain directors to re-evaluate their existing processes. They’re not just concerned with how AI can help them, but how any tech, including previously overlooked tools, can improve how they handle operations.

According to Astute Analytica, the Global Freight Procurement Technology Solutions Market will grow from $812.5 million in 2021 to $1,392.2 million by 2028. This opens up the possibilities for adopting various automated solutions. That said, warehouse managers and coordinators would be best served by focusing on planning and optimization tools in particular.

6 Reasons Planning and Optimization Is the Next Standard

There are a few specific reasons why supply chain coordinators would benefit from focusing on planning and optimization technology:

1. Delivers Predictability in a Volatile Market

With the advent of AI and machine learning tools, freight procurement software can analyze complex data sets to predict trends and patterns. Instead of offering generic transparency, these systems deliver actionable insights, such as forecasting dwell time at specific facilities, modeling alternative routes during weather disruptions, and identifying when market conditions may shift capacity or pricing. This level of guidance helps supply chain directors and logistics coordinators navigate volatility with greater confidence and precision.

2. Supports Smarter Carrier Partnerships

During the serious upheaval presented by the pandemic, leading procurement and supply chain consultancy State of Flux identified that "relationship management was the most effective tool in mitigating the situation caused by Covid-19." 65% of supply chain managers cited it as their number one, while "communication and information sharing" came in second with 58% citing it as beneficial in mitigating the effects of the pandemic.

These two priorities directly feed into each other. Carrier relationships can be improved by the tracking and communication of route and shipment information between transportation managers and shippers. Additionally, digital tools that streamline the loading and unloading of shipments can reduce truck dwell times—helping shippers cut detention and demurrage fees and enabling carriers to move freight more efficiently through clean tenders, clear routing instructions, and complete shipment data provided by platforms like ShipperGuide.

3. Reduces Waste and Hidden Costs

Manual processes come with hidden costs. One example is the opportunity cost of spending your time comparing freight rates and modes of transportation, which means less time improving your operations in other areas. 

There's also the lost time and productivity that comes with human error in calculations to consider. At best, a warehouse manager or logistics coordinator has to take time to correct these mistakes. At worst, these issues aren't caught until they result in fines via detention fees or demurrage charges, delays in the loading and unloading of freight, or even accidents and damage to shipments.

Using digital software for freight procurement allows you to utilize automatic calculations and real-time data in order to cut down on these hidden costs that could rack up to thousands of dollars in losses. 

4. Provides Data for Continuous Improvement

Freight procurement technology provides access to both real-time and historical data. Real-time data empowers supply chain and logistics executives to make cost-effective decisions on the fly, while historical data offers insights into trends around KPIs, transportation modes, and seasonal fluctuations. 

Advanced platforms like ShipperGuide take this further, with benchmarking capabilities, KPI dashboards, and cost-per-mile analysis that help managers evaluate carrier performance, optimize lane selections, and refine operations year after year. These analytics and optimization modules turn raw data into actionable intelligence, driving smarter, more efficient procurement decisions.

5. Helps Shippers Scale Without Added Complexity

Effective freight procurement and transportation management systems (TMS) are built to adapt to growing operations. This means allowing you to add information from carriers, drivers, routes, and more. Bonus points if these digital solutions have an intuitive interface that makes it easy to monitor all relevant performance metrics.

6. Future-Proofs Procurement Strategies

Right now, future-proofing your supply chain management means being able to weather changes in global trade policies, while still maintaining regulatory compliance. According to the 36th Annual Council of Supply Chain Management Professionals (CSCMP) State of Logistics Report, "leveraging technology" is how businesses can position themselves to "lead in both sustainability and business performance."

The complexities of modern supply chain management mean that directors and coordinators have to be able to monitor potential bottlenecks from all sides. This means having full data transparency, open communication channels, and automated modules that actively flag potential pain points. 

For example, tendering automation during peak periods, multi-mode flexibility for switching between LTL, FTL, or parcel, visibility into supplier-facing appointments, and real-time re-routing during disruptions help supply chain teams address issues before they escalate and maintain smooth operations.

Frequently Asked Questions About the Future of Freight Planning and Optimization

While the current technology available for freight planning optimization is effective, business owners need to understand the tools to properly utilize them. This is especially true when considering the potential time investment of both you and your team adopting new tech solutions. Below are a few questions that will help illuminate what these tools are capable of.

What’s Next for Freight Procurement Technology?

What’s next for freight procurement technology will likely center on deeper, more practical applications of AI and machine learning. Expect advancements such as automated lane-level forecasting, AI-driven bid optimization that recommends award distributions, predictive alerts for routing-guide failures, real-time benchmarking against market conditions, and algorithms that model cost scenarios.

Why Are Shippers Investing in Optimization Tools Now?

Shippers are investing in optimization tools now because increasing demands, market volatility, and global policy shake-ups have made it critical to improve efficiency and lower costs. Optimization tools provide the transparency and analysis required to make smarter decisions at all stages of freight procurement.

How Does ShipperGuide Prepare Supply Chains for the Future?

ShipperGuide prepares supply chains for the future with far more than basic tendering and tracking. Its carrier integrations enable fast, accurate tendering, real-time visibility, and streamlined invoicing—while its market benchmarking engine helps shippers select the most cost-effective carrier for every lane. 

ShipperGuide’s advanced machine-learning capabilities go even further, turning historical shipment data into immediate, lane-level insights, surfacing cost anomalies, predicting routing-guide risks, and distilling complex reports into clear, actionable next steps. The result is a procurement workflow that’s faster, more accurate, and built to outperform in shifting market conditions.

Positioning Your Supply Chain for the Future

Managers, coordinators, and directors at all levels of freight procurement are waking up to how technology is key to positioning themselves for success. This counts not just for the market as it exists today, but how it may be disrupted in the future. Investing in technology that streamlines the planning and optimization of freight procurement positions a business to be transparent, communicative, and agile. These traits enable a company to continually improve its freight procurement process year after year.

Don’t wait to future-proof your supply chain management. Request a demo of ShipperGuide today to see how you can overhaul your digital procurement.