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How the spot bidding works in 123cargo
Advantages of using the spot bidding
How the spot bidding works in 123cargo?
- The sender, when publishing the load, may launch an offer request. He becomes a requesting user.
- The carrier who consults the posted load may send its transport offer to the requesting user. The carrier becomes the offering user
- 123cargo notifies the requesting user that he has an offer. Hence, 3 possible situations:
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- The requesting user accepts the offer. The carrier is notified that he has won the spot bidding
- The requesting user rejects the offer. The carrier is notified that he has lost the spot bidding
- The requesting user negotiates by sending to the carrier the counteroffer:
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- The carrier accepts the counteroffer. He won the bid
- The carrier rejects the counteroffer. He lost the bid
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Spot bidding duration
- The duration of the offer request is decided by the requesting user. From 5 minutes to a few hours
- The duration of the offer is decided by the carrier: the offer might stay available a limited time or until the end of the bidding
- The duration of the counteroffer is decided by the requesting user. The term of the counteroffer cannot extend the time availability of the offer
- The closing of the spot bidding takes place in any of the following situations:
- Upon the expiration of the offer request if no offer has been accepted by the requesting user
- Upon acceptance of the offer by the requesting user
- Upon acceptance of the counteroffer by the carrier
Confidentiality of the offer and counteroffer
- The identities of the offering carriers and the bid winning carrier are known only to the requesting user, who submitte the offer request
- The carrier's offer is known only to the requesting user and none of the other offering carriers know each other's offers
- The requesting user's counteroffer is known only to the offering carrier
- The requesting user may send different counteroffers to different offering carriers
- However, the offer request, submitted by the requesting user, is visible to any user who can consult the posted load, through which the offer request was submitted, and the spot bidding was thus launched
What is up for negotiation in the spot bidding?
From the load posted upon the spot bidding launch, the following are automatically taken over for spot bidding:
- Load route
- Load availability upon loading – date or date and number of days available
- Weight of the load
- Requested truck equipments
- Grouping system requested (FTL full truckload or LTL grouping)
The requesting user, when launching the offer request, must mention:
- Offered price (excluding VAT)
- Payment due
- Validity term of the offer request, in minutes (spot bidding term)
The requesting user may optionally include in the offer request:
- Deployment (in km) included in the price offered – in case the route of the posted load is not accurate
- Date and time of loading
- Date and time of unloading
The carrier may submit in the bidding its own agreed values: price, due date, and also the optional data if specified by the requesting user.
What are the advantages of spot bidding over traditional ways of negotiation?
Traditional ways of communication in negotiating the transaction in 123cargo:
- Phone
- Chat
- Alternatives (WhatsApp etc.)
Concise negotiation. The requesting user has 2 possible steps in the negotiation: the offer request and the counteroffer. The carrier has the same 2 steps: the offer and the acceptance/rejection of the counteroffer. In the absence of an acceptance, the spot bidding shall be closed at the end of the validity term.
Spot bidding duration under the control of the participants. The duration is decided by the requesting user. The carrier and its bid: may have a limited term (less than the duration of spot bidding) or valid until the end of the spot bidding. Depending on the situation, for a load that needs a transport solution quickly, the spot bidding duration will be of a couple of minutes. For a less popular route, we expect a spot bidding of a few hours.
The spot bidding eliminates the risk of receiving offers via email from impostors. This is the most common cause of load loss using a freight exchange. The impostor uses an email address almost similar to that of a real and existing company. The success of the fraud when happens is due to the victim's distraction and the rush to find a transport solution. In spot biddings, only strictly logged in users can submit offers and consequently, this type of fraud is unexistent.
Eliminated post-confirmation delays. That is, the requesting user does not send the transport order after the transaction has been set. Or the carrier's confirmation, containing the truck number and the driver's phone number. No more delays because the deal remain visible to the two parties and 123cargo administration in the spot bidding module.
Mutual reviews. After the transport is completed, the parties can give each other reviews. The requesting user shall rate the carrier for the manner in which it has carried out the loading, the schedule and the unloading. The carrier shall rate the consignor for the way in which it has organized the transport: full and accurate details communicated, available for communication during the transport, if needed. In short, the way the transport order reflected the reality of the trip.
Simultaneous offers for the same single vehicle. At the same time, the carrier may launch offers in several spot bids with only one vehicle at its disposal. When the first of the offers becomes winning, the carrier has the possibility to withdraw all other offers through a single bulk deletion, if it has used the ALIAS tool provided.
The spot bidding reduces the number of non-compliant situations with professional probity. This is possible because the spot bidding is carried out under the control of 123cargo. An offer request may be deleted by the requesting user as long as he did not yet accept an offer. Or a counteroffer sent was accepted by the offering carrier. Deleting the offer request already solved creates malfunction in the operation of the winning carrier. In turn, the carrier who cancels the offer already accepted by the requesting user, or changes his mind after accepting the counteroffer of the requesting user, is in a non-compliant situation with professional probity. All these non-compliances are logged and lead to a decrease the user’s score in spot bidding for the requesting user and the carrier.
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The idea of this spot bidding project came from 123cargo users and was capitalized thanks to the knowledge of the road freight transport industry by 123cargo team. Spot bids, in their operation, are based on a technology that makes it possible to communicate information in real time only between users interested in that spot bidding.
By implementing the spot bidding, we will not eradicate the method of "closing a deal by shaking hands" an agreement which is valid until a more appropriate opportunity arises, at which point the partner until then is left "high and dry". Phrases such as: "the load is not ready", "the customer has given the load to someone else", "I send the confirmation when I get to the office", "the truck has broken down and I can't load anymore", "I haven't finished unloading" are probably familiar to you. These situations will put their mark on the score of users who retract firm commitments, manifested and probable (opposable) in the spot bidding module.
We estimate that the use of the spot bidding module especially by the requesting users requires a significant degree of accommodation with the websites, due to the volume of data received from the application in real time. The project is only at the beginning and if the spot bidding module will be appreciated and used, its extension with functionalities following a successful transaction is already planned.
Access to spot bidding is included in the access price to 123cargo. Do not hesitate to let us know your disappointments, proposals and comments. Thank you in advance.
123cargo Team
