Logistics Outsourcing and Tender Management

Logistics Outsourcing and Tender Management

Over recent years the consultants at The Supply Chain Consulting Group (SCCG) have reviewed, developed and managed many Logistics procurement and outsourcing solutions on behalf of clients. The combined logistics contract value has now hit a significant milestone of over £2BN (GBP).

Our Logistics and Supply Chain Consultants, all of whom have a background of working with or for Transport and Logistics Service Providers, have significant experience in developing the scope of the logistics outsourcing tenders to cover all operational and service requirements; managing the tender process from beginning to end, from writing the scope to response evaluation and final negotiations for Global, European and UK based Multi-modal Transport and Distribution logistics, warehousing, and freight tenders.

Logistics Outsourcing Experience

Our experience shows that just re-tendering the same in-house or outsourced logistics network can provide cost savings up to 10% of annual costs. However through evaluation of your current and future logistics requirements and subsequent development of a more bespoke logistics outsourcing service requirement, whilst maintaining tight control of the tender process; savings of around 20% to 30% can be achieved After a period of growth or expansion, many companies may be required to select and outsource some of their fundamental Supply Chain operations, to a third-party- provider.

Without a comprehensive understanding of the pros and cons of outsourcing logistics functions, or even changing providers for your business – the first time can bring big potential risks ranging from commercial disagreements with the chosen service provider to service disruption, resulting in lost sales and customer service issues.

The consultants at SCCG have reviewed, developed and managed many Logistics procurement and outsourcing solutions on behalf of clients over the years, and have worked in the bid-teams of leading 3PLs (Third Party Logistics Providers) and on behalf of numerous major clients, within the procurement of logistics services.

Our Approach to Outsourcing Logistics Services

  • Initially work with you to develop an inhouse vs. outsourced strategy
  • Where necessary, identify the relevant vendors for the logistics functions you require 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
  • Evaluate the comparative bids enabling you to understand the value proposition and the risks involved with each provider
  • 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

Our Approach to Contract reviews

An additional service we offer is LSP 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. This process however often requires a significant amount of time and resources for an LSP to respond during a tender process.
Regularly running “benchmarking” processes with no intention of changing provider can potentially damage your relationships with your existing 3PL or Logistics Service Provider. Alternatively, SCCG advise to instead, review your existing contract SLAs (Service Level Agreements) and operation to identify where there is potential to find efficiencies. The SCCG team will 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 existing logistics functions and overall supply chain. To determine a strategy you can use, to start the outsourcing process for the relevant logistics functions for your business, contact the SCCG team today.

Our Logistics Outsourcing Projects Include

  • Global Freight and landside production Logistics
  • European Distribution and ‘Last Mile’ delivery
  • Global Distribution Centre for fashion and accessories
  • UK Distribution Centre
  • Materials Warehousing and Distribution
  • UK Home Delivery Logistics Network and Distribution
  • Bulk Food Waste Collection and UK transport operations
  • Global Logistics Network for furniture distribution
  • Materials warehousing and Distribution
  • UK Distribution
  • UK Logistics Network
  • UK frozen Logistics and Distribution Networks
  • Benelux frozen Logistics and Distribution Networks
  • Southern 30,000 pallet storage and Distribution Centre
  • Northern 35,000 pallet Distribution Centre
  • UK Distribution Network
  • UK Distribution Network
  • Global Inbound Freight and European Distribution network
  • European Logistics Network
  • UK e-fulfilment
  • UK Logistics & Distribution Network
  • Benelux Logistics and Distribution network
  • Germany Logistics and Distribution network

Logistics Consultancy Case Studies

Technology Supplies Ltd Case Study

The Supply Chain Consulting Group Supports New Build Modular Warehouse  The new Technology Supplies distribution centre (incorporating sales, administration and warehouse functions) was fully operational in the 1st quarter of 2012, after a three year project from initial concept designs,……
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Farmfoods Case Study

The Supply Chain Consulting Group Completes Distribution Network Review & Optimisation Project For Farmfoods Farmfoods is a frozen food specialist, which has expanded throughout the UK to 320 stores selling frozen, chilled and ambient products. The stores are serviced by……
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Scott Bader

Scott Bader Case Study

Detailed Review and Optimisation of Internal Supply Chain Activities Scott Bader, established in the UK in 1921, is a multi-national chemical company with revenues of €220m and employing 600 people with manufacturing facilities in the UK, France, Croatia, The Middle……
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Weird Fish

Weird Fish Case Study

The Supply Chain Consulting Group Reviews Logistics Operations For Weird Fish The Weird Fish clothing brand was born in 1993 and has grown its core business of wholesaling their unique and quirky range to 400+ independent retail outlets, with a……
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Supply Chain and Logistics Specialists

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.