Outsourcing/Tender Management

Outsourcing / Tender Management

The competitive force of globalisation has led to increasing time and cost constraints on every company’s logistics operations.

Companies know these burdens can be effectively eased via an appropriate outsourcing arrangement.

But without experience, finding the right arrangement is hard.

Outsourcing logistics or supply chain operations is a major undertaking requiring a full understanding of the business case, and full and detailed analysis of 3PL proposals from both a quantitative and qualitative perspective.

To truly get the best solution from the 3PL market, companies need to engage providers in an open and collaborative way; they need to ensure that the logistics provider has a full and detailed understanding of how their operation works, and they need to approach the market with a clear and structured process.

HSCS is here to guide you through the haze…

A Unique Understanding

When it comes to outsourcing and tender management, HSCS’s experience in both supply and client side environments gives us a unique and empathetic perspective.

We’ve seen how successful relationships are nurtured from both sides and have delivered many solutions that satisfy every need in the chain. Whether it is managing logistics tenders on behalf of client side companies or designing logistics solutions for 3PLs themselves.

Regardless of the type of logistics operations being outsourced, a clear and accountable process needs to be followed to ensure efficiency of operations. We do this to mitigate risk and ensure implementation is diligent and effective.

Some of the key areas where we can support you include:

Objective Validation

It is important to not only understand why you are considering outsourcing (or re-tendering an existing contract), but also what your expectation from the service provider will be. Cost is often not the main driver, it is value, flexibility and innovation. When outsourcing logistics, the objectives need to be clear and well communicated in advance, ultimately forming part of the selection criteria when considering final responses.

Identifying Potential Logistics Providers

Whether via RFI or through a custom selection of providers, HSCS knows which suppliers can effectively deliver on the need. We are extremely experienced in the 3PL market and have undertaken many logistics tenders for a range of environments and market conditions.

Operational Profiling

The number and quality of responses a tender receives is highly dependent on the quality and level of detail provided in the operational profile. Significant time and effort needs to be deployed in order to provide a profile that accurately represents the business and its future objectives. This includes product data, receipt transactions, despatch transactions, delivery points, operating constraints and seasonality. HSCS has the experience to effectively communicate the need, saving time and getting only the most suitable solutions presented fast.

Tender Creation

The Invitation to Tender (ITT) needs to be comprehensive, but also concise. HSCS can ensure the document is written with care and attention and with an understanding of the salient points logistics providers will need to consider in their response. An ITT written by HSCS will cover, as a minimum, the operational profile, commercial framework, modelling constraints and IT requirements, along with strategic plans and a clear objective statement.

Full Logistics Tender Management

The tendering process should comprise a series of key stages covering objective validation, operational profiling, identifying potential providers, tender creation and finally tender assessment. Responding to logistics tenders can be a time consuming and highly analytical process. Consequently, the tender information and process should be as clear and concise as possible.

Managing a logistics tender process can be very time consuming for management teams, especially with the level of communications required with participating 3PLs and the granularity needed when assessing proposals. HSCS can take the strain of this work, whilst keeping you informed of progress each step of the way and supporting you in the final decision

Some examples of where HSCS has helped companies through an outsourcing or tender management initative include:

Alex joined L’Oréal as part of the procurement team but based separately in our DC in Trafford Park. Over a very short period of time Alex became a valued asset to the business. He built relationships with key business owners quickly, hit the ground running on key projects and delivered what he set out to do. All with a smile on his face. If we could we would have kept him and will definitely take him back. I would recommend Alex to any company looking to work with a trust worthy and knowledgeable operational and procurement specialist.
Director of Procurement

L’Oréal

We supported Dunelm in the re-submission of their ITT for the outsourcing of their 2MAN home delivery operation. We lead the project through from initial short listing, re-affirmation / alignment of ITT deliverables, determining operational capability. customer service deliverables and subsequent implementation. The project was successfully delivered in a 3 month timetable with go live of the new partner, Panther Warehousing Group, occurring after just 2 months.

Dunelm Group PLC

We supported Spicers Logistics through a strategic change program focused on a central ‘everything for the office’ theme. Key deliverables included the outsourcing and implementation of Spicer’s 2MAN Furniture and primary trunking operation to a third party. Objectives included:

  • Formulation of the contract
  • Initial negotiation with bidders
  • Assessment of operational solutions for fit
  • Project budget and business case realisation
  • Engagement with stakeholders
  • Building and maintaining effective relationships with chosen 3PL
  • communication of progress and status to enable decision making,
  • Co-ordination of activity across numerous work streams
Spicers Ltd

Contact Us Now

Please contact us to talk about your supply chain and logistics problem. Reach us by phone, email or request a call back via the form opposite.

Phone

0116 318 3552

 

Email

admin@hewes-scs.com

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