What is an Award?

Jun 1
1 min read

Definition

An Award is the process of selecting and assigning transportation business to a bidder based on the results of a logistics procurement or freight bidding project.

It represents the final decision made by the shipper after evaluating quotations, proposals, and service capabilities.

Purpose of an Award

The objectives of an award include:

Selecting the best logistics partner
Optimizing transportation costs
Improving service quality
Securing transportation capacity
Maintaining procurement transparency

Award Process

The shipper issues an RFQ or RFP.
Bidders submit quotations and proposals.
The shipper evaluates responses.
Benchmarking and comparison analyses are performed.
Business is awarded to the selected bidder.

Award Evaluation Criteria

Common evaluation factors include:

Freight rates
Service quality
On-time performance
Transportation capacity
Safety records
Industry experience
Improvement proposals

Single Award vs Multiple Award

Single Award

All transportation lanes are awarded to a single provider.

Multiple Award

Transportation lanes are distributed among multiple providers to reduce risk and maintain competition.

Awards in E-BID FREIGHT

E-BID FREIGHT enables shippers to compare bidders at the lane level and make data-driven award decisions.

Award results can also be used for benchmarking and procurement analysis.