Due to the ever evolving tech landscape changing how businesses operate across the globe, there’s no surprise that freight procurement is also undergoing a major shift.

With the introduction of new digital procurement tools, the way freight is sourced and awarded is changing dramatically to be AI-supported, data-driven, and increasingly autonomous.

For shippers and carriers alike, this means saving time, cutting costs, and making better use of resources.

Bernhard Schmaldienst, Associate VP Transporeon Products, Trimble, explores the potential of AI-supported technology that is transforming the spot market as we know it.

The Rise of Spot Freight

Across Europe, there is an increasing amount of freight being handled on the spot market. The reasons for this vary: Fleet reductions and driver shortages are leading to capacity bottlenecks for carriers. Shippers, in turn, often do not want to commit to fixed volumes for the long term in times of economic uncertainty. This makes spot allocation more attractive.

This flexibility however, comes at a price. Manually processing individual requests is time-consuming, error-prone, and ties up resources for both shippers and freight forwarders. While buyers submit requests, wait for quotes, and then compare and evaluate them, carriers invest considerable resources in complex calculations with no guarantee of the correct outcome.

From Price Takers to Price Makers

An autonomous procurement solution turns this process on its head. Instead of carriers submitting  quotes, shippers do, supported by artificial intelligence. Based on historical spot and freight rate data, a specified price range and a fixed maximum price limit, as well as logistical parameters such as lead times, modes of transport, and sustainability criteria. This is then published in real time on the platform, tailored to individual carriers. Integrated AI then analyses freight carriers based on past bookings and develops tailored quotes, creating  a high degree of differentiation in quote creation. The system then automatically forecasts a price for each carrier that lies within the specified range.

If an order is not booked at any of the initial prices, the system dynamically adjusts the price or initiates additional tender rounds. The difference between an automated and an autonomous solution is that Autonomous Procurement itself determines which forwarders will be invited next, what terms they will receive, and how long each round lasts. Once a time-consuming process, this can now be completed within seconds, scalable, error-free, and at any time. Measurements show that the proportion of orders matched automatically is up to 90 percent, with the average match time dropping to 70 minutes. And with the more structured historical data on freight, routes, and carriers available, the more precise and efficient the system becomes. Platform-based transport management systems provide the best foundation for this, especially when they provide access to a broad network and reliable market data.

Turning Spot Buying into a Strategic Advantage 

The benefit of this for shippers is clear: productivity per dispatcher increases by 20 percent annually thanks to outsourcing the spot buying process. Teams can therefore turn their focus on strategic deals and their business relationships instead of repetitive and time-consuming manual work. At the same time, the system helps identify the best available spot prices, which are typically eight to twelve percent lower than those achieved through traditional bidding processes. This means even less experienced team members can efficiently tender spot freight with this solution, supported by the technology’s algorithms.

Why Carriers Benefit from Smarter Freight Allocation 

In the long term, however, a new solution only works if both sides benefit. So, what is the advantage to carriers? Well, they don’t have to invest time in a quote, but can accept new orders immediately with a click or completely automate order acceptance. At the same time, they gain full transparency over offered shipments, including all necessary details. This simplifies scheduling, even at short notice, and reduces empty runs. Not only this, they also benefit from reliable, punctual payments, which builds trust and facilitates planning, especially for small and medium-sized carriers.

Balancing Automation with Human Expertise 

According to carriers and recent industry findings, roughly 95 percent of freight can currently be offered fully automated. While this may seem daunting, it’s important to remember that autonomous systems work alongside employees to enhance their performance, illustrating how modern technology and human capabilities can be harmoniously balanced. While this software might be capable of quickly and accurately analysing market prices across all routes and regions, humans are needed in the loop to question rules, evaluate exceptions, and make strategic decisions. Especially in an environment where experience, business relationships, and strategic decisions count, the combination of human expertise and modern technology creates the greatest added value.