Manuscript Number : SHISRRJ221221

Developing Tender Optimization Models for Freight Rate Negotiations Using Finance-Operations Collaboration

Authors(6) :-John Oluwaseun Olajide, Bisayo Oluwatosin Otokiti, Sharon Nwani, Adebanji Samuel Ogunmokun, Bolaji Iyanu Adekunle, Joyce Efekpogua Fiemotongha

Freight rate negotiations are a critical lever in managing supply chain costs, yet traditional tendering practices often fall short due to siloed decision-making and insufficient integration of financial and operational insights. This paper presents a robust, interdisciplinary framework for developing tender optimization models through finance-operations collaboration. Drawing from current literature, the study critiques prevailing logistics procurement practices and highlights the limitations of isolated financial or operational strategies. It proposes a conceptual model that integrates key decision variables—such as volume commitments, carrier performance, and cost structures—with financial forecasts and operational constraints. Utilizing mathematical optimization techniques, including mixed-integer linear programming and simulation-based tools, the paper outlines a data-driven methodology for selecting optimal freight carriers. A case simulation illustrates how collaborative model development enhances negotiation outcomes, increases cost-efficiency, and builds supply chain resilience. The paper concludes with actionable insights for managers and identifies future research avenues, such as incorporating sustainability metrics and dynamic re-tendering algorithms, to strengthen sourcing strategies in volatile markets further.

Authors and Affiliations

John Oluwaseun Olajide
Lipton, USA
Bisayo Oluwatosin Otokiti
Department of Business and Entrepreneurship, Kwara State University
Sharon Nwani
Migo, Lagos, Nigeria;
Adebanji Samuel Ogunmokun
United Utilities, UK
Bolaji Iyanu Adekunle
Data Scientist, GSFEN Limited, Nigeria
Joyce Efekpogua Fiemotongha
Independent Researcher, Lagos, Nigeria

Tender Optimization, Freight Rate Negotiation, Finance-Operations Collaboration, Logistics Procurement, Supply Chain Strategy, Optimization Models

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Publication Details

Published in : Volume 5 | Issue 2 | March-April 2022
Date of Publication : 2022-03-30
License:  This work is licensed under a Creative Commons Attribution 4.0 International License.
Page(s) : 136-149
Manuscript Number : SHISRRJ221221
Publisher : Shauryam Research Institute

ISSN : 2581-6306

Cite This Article :

John Oluwaseun Olajide, Bisayo Oluwatosin Otokiti, Sharon Nwani, Adebanji Samuel Ogunmokun, Bolaji Iyanu Adekunle, Joyce Efekpogua Fiemotongha, "Developing Tender Optimization Models for Freight Rate Negotiations Using Finance-Operations Collaboration", Shodhshauryam, International Scientific Refereed Research Journal (SHISRRJ), ISSN : 2581-6306, Volume 5, Issue 2, pp.136-149, March-April.2022
URL : https://shisrrj.com/SHISRRJ221221

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