“Too expensive!”

Freight procurement used to be simple: the lowest price won. Today, it’s a complex balancing act between cost, service and sustainability – and those who treat it as a price game will fall behind.

For many years, my job was to develop business with large shippers. One phrase I heard countless times: “Your offer is too expensive!”

In the past, this was the buyers’ key tool: oversupply and standardised services allowed easy switching, so the toughest negotiators achieved the biggest savings. This thinking peaked with reverse auctions – “Best Price Undelivered” as carriers joked.

But procurement has changed. Today, costs remain important, yet service and sustainability have become just as decisive.

Service

Capacity is no longer guaranteed. Driver shortage, EU regulations and changing labour markets mean scarcity is more common. That’s why strong, reliable partnerships matter – in good times and bad.

Sustainability

Around a decade ago, CO₂ reduction entered the picture. What began as image-polishing is now a hard business factor. With ETS2* arriving by 2027 and CSRD** reporting already required, low-emission transport has become an economic necessity, not just a green add-on.

Conclusion

Strategic freight procurement is no longer one-dimensional. The old “Master & Servant” model is outdated. Success means building partnerships with carriers who provide not only competitive rates, but also capacity in difficult times and sustainable solutions.

What is your view on the topic? I´d love to read your comment!

*ETS2: buildings, road transport and additional sectors - European Commission

** Corporate sustainability reporting - European Commission