Case study:

Strategy & Tender Management

Major Manufacturer

Background & Brief

This leading manufacturer had over 30% of the UK retail snack foods market, and ongoing annual growth of more than 10%. SCALA had previously assisted the client in changing logistics contractors (5 years previously – with significant gains) and in benchmarking.  With the near completion of the contract and further expansion and development across several sites, SCALA was asked to revisit the client’s logistics contractual arrangements.

Project Approach

SCALA undertook some high-level modelling which provided the strategic direction and then managed a logistics tendering process incorporating:

  • Fully documenting all current and future requirement (inc. anticipated service developments)
  • Extracting robust data and detailed data for bidders
  • Developing  ITT documents
  • Short-listing Logistics companies based on capabilities and suitability
  • Briefing and Liaising  with Contactors
  • Proposal evaluation and ratification
  • Presentation and Selection Management
  • Final Negotiation
  • Contractual Agreement – input to legal advisers

Benefits & Results

SCALA enabled a highly competitive process which ultimately resulted in the following benefits for our client:

  • A revised contract providing a solid basis for the business to develop further
  • Major cost reductions (circa 10%)
  • Incorporation of future customer service enhancements within the reduced costs
  • Consolidated deliveries to customers from different sites

Final Outcome

The client was able to leverage their enhanced scale and realise significant logistical savings alongside a long-term strategic solution thanks to the competitive tendering process.