Using a partner like SCALA to guide you through the process can be extremely useful: we have relationships with a wide range of 3rd party logistics providers and will have an understanding of who might be a good fit as well as having extensive experience of the tender process and documentation through our years of helping businesses with outsourcing.
Data will be key: for a third party to provide an accurate proposal, it is essential you provide them with good quality volume and throughput data and we can help you achieve this. The better the depth and quality of the data, the more likely you are to ultimately get a solution that fits.
SCALA will work with you to create a Request for Information document, a high level document sent to a long list of suppliers detailing the work being tendered, to gauge interest on the part of the 3PLs.
Based on the responses to the RFI, a Request for Proposal (RFP) or an Invitation to Tender (ITT) document will be sent to a short list of potential suppliers. Things to consider will include:
· Ability to support potential growth over the contract
· Location of proposed 3PL site
· WMS capability
· Additional Technology
· ESG
· Transportation
· International capabilities
· Relationship management
· Cultural fit
Lastly all parties will need to submit a financial proposal.
Once all proposals have been submitted, SCALA can provide the analysis to compare the costs against the volumes, and create a summary of the total cost per provider against the existing baseline.
Whilst it’s tempting to go with the lowest cost option, careful consideration will be given to the whole offering from each provider. A robust Q&A session will be held with each supplier to probe their responses and understand flexibility around any variances to advised volumes and a site visit will be carried out for any serious contender, as this will often provide insight that cannot be gleaned from data.
SCALA have decades of experience helping customers to assess what is right for them. We can not only run the tender but help with upfront activities like centre of gravity analysis, post tender implementation support and project management.
If you are considering outsourcing your logistics, or retendering an existing third party contract, we would be delighted to have a conversation about how we can support you – you can get in touch here.
