A spot quote is a price quote for a shipment of goods that is valid for a specific period of time, usually a few days. Spot quotes are typically used for shipments that are needed on a one-time or ad-hoc basis, rather than on a regular or ongoing basis.
Spot quotes are often used in the transportation and logistics industry, where carriers and shippers may need to quickly arrange for the transport of goods on a short-notice basis. For example, if a shipper has an urgent need to ship a large quantity of goods from one location to another, they may request spot quotes from multiple carriers to determine the most cost-effective option.
Spot quotes are typically based on a variety of factors, including the origin and destination of the shipment, the type and quantity of goods being shipped, and the mode of transportation. In some cases, spot quotes may be subject to availability, as carriers may have limited capacity or may only be able to accommodate the shipment on certain dates.
1) Flexibility: Spot quotes allow shippers to move goods on a one-time basis, which can be useful for urgent or last-minute shipments.
2) Cost effectiveness: Spot quotes can be more cost-effective for smaller shipments, as the lack of volume discounts can make long-term contracts more expensive.
3) Access to a wider range of carriers: Using a spot quote allows a shipper to reach out to multiple carriers and choose the one that offers the best combination of price and service. This can be especially useful for shippers who do not have long-term contracts with carriers.
4) Speed: Spot quotes can be processed quickly, as carriers are able to provide rates and availability in a short amount of time. This can be important for urgent shipments.
However, it’s important to note that spot quotes can also be more expensive than long-term contracts due to the added risk and lack of volume discounts for carriers.
At Piyovi, we provide a simple and seamless way to integrate spot quote process within your transportation processes for all modes of transportation. Eliminate manual email/phone communication to manage spot bids. Accepted carrier and the spot bid data is integrated into the shipment execution, tracking, and invoice auditing processes.
Would you like to see a live demo of spot quote process integrated into an end-to-end TMS solution?