Logistics Outsourcing and Tender Management

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Logistics Outsourcing

Over time, following a period of growth, or international expansion, many companies may be required to select and outsource some of their fundamental Supply Chain operations, to a third-party- provider.

The Supply Chain Consulting Group has significant experience in outsourcing third-party- providers, specifically so, the outsourcing of logistics services providers (LSPs) or 3PLs. 3PLs offer customers the possibility to outsource logistics services for the complete range of supply chain functions and needs.

Key supply chain functions which can be outsourced to Tender include:

Tender Management

A popular choice, and a useful resource once correctly integrated into a company’s Supply Chain, 3PLs do however require an initial detailed sourcing and selection process, including the final negotiation and contract agreement.

This process of negotiation is referred to as: Tender Management; for which SCCG have worked in the bid-teams of leading logistics service providers, and on behalf of numerous major clients, within the procurement of logistics services.

Our Approach to Logistics Outsourcing

  • Work with you to develop an insource vs outsource strategy
  • Help you to identify the relevant vendors for the logistics functions you plan to outsource
  • Manage the request for information (RFI) process to create a shortlist of key vendors to ask for a detailed bid
  • Specify your requirement in a detailed request for quotation (RFQ) process to ensure that meaningful, directly comparable offers are made
  • We will help you to evaluate the comparative bids enabling you to understand the value proposition and the risks involved with each provider
  • We will engage with you and the selected supplier in the negotiation and contracting phase advising you on what to expect and how you can drive further value for your business
  • Following selection and contract award we will support the implementation planning and review the operation to ensure what was promised has been delivered

3PL Contract Reviews

An additional service we offer is 3PL contract reviews.

It can be very tempting when you already have a logistics service provider and are looking for cost reductions to carry out a tender process for “benchmarking” purposes. The thing to remember is that it often takes significant time and resources for a 3PL to respond during a tender process.

Regularly running “benchmarking” processes with no intention of changing provider will risk damaging relationships with 3PLs they may even stop responding to your future requests.

The alternative is to review your existing contract and operation to identify where there is potential to find efficiencies. We can help you to carry out contract reviews when what you are looking for is a reduction in logistics costs rather than a change of provider.

SCCG can help you to manage your suppliers and operations to achieve the most value from your logistics functions and overall supply chain.

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Building transport, inventory and location strategies around your customer service goals. Developing a logistics infrastructure that meets your business goals.

Our knowledgeable Supply Chain Consultants have built Cost-to-Serve models to allow companies to unlock hidden profit potential by understanding the costs involved in serving specific customers and products. Understanding each clients’ individual priorities and the specific complexities of each business; The SCCG team carefully utilise specific models, in order to custom-build solutions for each client.

Synonymous with Supply Chain is Inventory Optimisation, for which our Supply Chain Consultants use ‘Inventory Modelling’ to establish the correct level of stock for any given situation – balancing the need to maintain a high-level of customer service with the desire to minimise working capital.

As part of the Global Supply Chain – Import, Export and Logistics – is the part of the supply chain processes that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customs and customer requirements.

Inventory modelling can be used to define the correct stocking policy for a large range of SKUs – for example, which SKUs should be stocked in local branches, and which should be held in one national centre.

Clients Case Studies

Weston Homes Case Study

The Supply Chain Consulting Group completes Warehouse Design and Optimisation Founded by Bob Weston in 1987, Weston Homes Plc (Weston) are a large and successful property construction company providing high specification traditional style homes, apartment blocks, large complexes; and refurbishments……
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Weidmann Case Study

The Supply Chain Consulting Group Review Warehouse Operations For Weidman Weidmann Electrical Technologies (Weidmann) are a division of the WICOR Group based in Switzerland. In the UK, Weidmann have two divisions, electrical components and a papermill for the production of……
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Warehouse Review and WMS Selection

Warehouse Review and WMS selection for a Creative Agency

Company and Project Background A creative branded merchandise agency that helps global brands build culture, awareness and meaningful connections with their customers, employees and communities across 150 countries worldwide, approached SCCG to review their current warehouse operations and systems. Objectives……
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Davis and shirtliff

Warehouse Design Project for Davis and Shirtliff

Davis & Shirtliff (D&S) is the largest water-related equipment supplier and industry leader in the East African region. Based in Kenya, D&S operates through a network of 70 different branches within the country, whilst exporting to different regional affiliates in……
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Wacoal (Formerly Eveden Group) Case Study

The Supply Chain Consulting Group Implement Standard Global S&OP Platform Wacoal (formerly known as Eveden Group) is a leading manufacturer of intimate apparel, offering various brands including Huit, Fantasie and Freya. Wacoal designs and manufactures high quality, fashion conscious lingerie……
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Volvo Group Case Study

Volvo Group Choose The Supply Chain Consulting Group Volvo Construction Equipment (a division of Volvo Group UK Ltd) has a warehouse operation in Duxford that supplies parts and equipment directly to end customers nationwide and to regional Customer Support Centres.……
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Triumph Motorcycles

Triumph Motorcycles Case Study

The Supply Chain Consulting Group Race Towards A Global Logistics Triumph Triumph Motorcycles engaged The Supply Chain Consulting Group (SCCG) to review and develop their consolidated Global freight and Logistics strategy, with the objective of engaging a single Logistics Service……
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ToffeIn Case Study

The Supply Chain Consulting Group Conducts Internal Process Review For ToffeIn  Toffeln is one of the world’s leading experts in the design and manufacture of specialist ergonomic design footwear for professionals working indoors in hygienic environments such as hospitals, kitchens,……
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Get in Touch

Call us on +44(0) 1926 430 883​

Supply chain and Logistics Specialists highly experienced in all aspects of Supply Chain and Logistics Operations, Distribution Network Strategy, Warehousing Operations, e-commerce Logistics and Warehouse and Distribution Centre Design.