The manufacturing and trade industry is dynamic and open to international influences. Cargo owners need to focus on consumer requirements and thus act flexibly on the market. The use of online freight exchanges from the logistics sector especially makes sense for these companies to quickly and efficiently find available vehicles for their goods on the logistics spot market. But how do these internet transport platforms work and what do you need to be aware about?
For cargo owners, working with a big player is worth it. TimoCom, Europe’s largest transport platform, has for example over 100,000 users who enter up to 450,000 offers in the platform – daily! The reason is very simple: The more transport service providers and the more vehicle offers there are on an exchange, the greater are the chances for manufacturing and trade companies of having their goods transported quickly and easily. With the pan-European leading freight exchange from TimoCom, the available freight entered by cargo owners are mostly only online for a brief moment. Any available freight offer being found is assigned to one of the available transport providers within seconds. For manufacturing and trade companies, there is hardly a quicker way of having their goods transported.
Tendering transport jobs
Basically, you distinguish between two main types of freight tendering via online platforms: For the so-called spot market there are exchanges in which available freight and vehicles are offered up-to-the-minute. The term “spot market” means “on the spot”, i.e. assigning orders at short notice at the price applicable on the day. With access to the spot market, TimoCom customers will find up to 150,000 vehicle offers from 33,000 certified transport service providers – and always be able to find suitable vehicles for their goods. The fundamental principle of a freight and vehicle exchange for the spot market is simple: It works like a virtual notice board. A cargo owner specifies which goods have to be transported, a transport service provider then contacts the company and both business partners negotiate the conditions and a deal closure is done quickly. The actual transaction is then finalised directly between the two partners who have found each other in the exchange.
The second way of assigning transport jobs takes place on the “contract market”, which is oriented towards long-term business relationships. Here, long-term contracts for specific service packages or routes are tendered via an online tendering platform.
What makes a freight exchange a transport platform
In order to really work efficiently and securely with freight exchanges, manufacturing and trade companies should be aware about some issues in regards to security. After all, valuable goods which have to be transported are at stake. Freight exchanges which do not offer any services or special security measures should be avoided. Using one of the large transport platforms is the best option.
Besides these two – freight exchanges for the spot market and tendering platforms for long-term contracts – a good transport platform also offers an substantial security system. Those who conduct business online and release sensitive data should make sure they are “working on safe grounds”.
A given transport platform should also offer an effective tracking solution, so manufacturing and trade companies can locate and follow their goods during transportation. The benefit of TimoCom is the tracking platform which works provider independent – i.e. many different telematic providers can be displayed within a single platform.
Moreover, the security measures from the transport platform also include verifying new members and a multi-level security package which forms the basis for transparent and reliable business. Reliable transport platforms only allow new customers access to the freight exchange once they have passed an extensive check. This prevents “black sheep” with fake companies’ access to the freight exchange. Prior to activation, important business documents such as commercial register excerpts are verified as well as creditworthiness. Once a contract has been signed, customer actions within the platforms are also monitored. The highest priority is to ensure security for all customers.
Establishing business contacts is another advantage of the large transport platforms. The largest transport platform in Europe offers an online transport directory with company profiles of over 33,000 active transport, logistics service providers and cargo owners. This allows companies from manufacturing and trade to find exact information on the transport and logistics field in Europe and to quickly expand their pool of suppliers and service providers.
If manufacturing and trade companies consider the above mentioned aspects they will be able to choose the right transport platform to make their logistics faster and more efficient and offering security at the same time.
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