Wanted to see if anyone was running government contracts and get some strategic conversations started in Freight Skool. I'm currently working on a 5 year DoD logistics contract, Yes a contractual obligation to run freight for 5 years at the contracted rates.
When I look at long term guaranteed business my strategy is pretty simple, What are the average carrier costs per mile, what is the average inflation % year over year, What is a sustainable profit% for carriers to grow their business, and what is a sustainable margin for me to grow my business. If I submit a bid based off of these numbers and win the contract everyone is happy.
I grow my business, a carrier grows their business, and the customer gets excellent communication from me and the carrier because this has become an important part of both of our growth strategy.