The Logistics Consultants can help you decide which processes or functions should be outsourced and assist you in selecting a suitable service provider.
Or, if you are considering changing you existing logistics provider, we will ensure that you find the best options to meet your requirements.
We have delivered solutions for clients requiring a full-blown outsourced solution, involving warehousing and distribution, while other clients required only a warehousing solution or a haulage or courier service.
Typically, an outsourcing process might involve:
- Process map of current supply chain
- Identify numbers of suppliers; SKU’s; orders; deliveries; pallet spaces etc.
- Profile customer base; number and location of customers; ordering patterns; delivery quantities etc.
- Identify supply chain operating costs
- Identify supply chain services required and potential added value services
- Identify any potential supply chain improvement opportunities
- Draft Request for Proposals (RFP) to include background; service required; projected volumes; service levels required; response requirements (e.g. time-lines, financial background etc.)
- Identify and profile list of potential qualified 3PL’s
- Manage the selection process, including:
- Develop scorecard and criteria set for evaluating 3PL responses
- Review and evaluate responses in conjunction with management
- Attend presentations by candidates
- Arrange site visit to 3PL’s locations
- Assist and facilitate management team decision to select preferred candidate to proceed to detailed negotiation of service contract.
- Agreement on timelines, milestones, etc.
- Definition of appropriate metrics for insertion into the contract to track performance (e.g. labour productivity, space utilization, stock accuracy, stock rotation, on time/in full, etc.)
Our consultants can also provide and facilitate an implementation plan that ensures an effective transition from the existing operation to the new outsourced solution. This role can be tailored to provide whatever level of support the client requires.
It is vital to ensure that the charging mechanisms are tied to true cost drivers for the various activities so that there is transparency on both sides to incentivise performance and cost improvements, and we recommend a framework for gainsharing initiatives.
An important feature of our approach is the development of the performance measurement and tracking regime for reporting between our client and the 3PL, and an agreement on measures to mitigate risk arising from unforeseen changes to the business or to economic conditions in the future.