Tendering logistics operations is the first step in developing a potentially long-term relationship with a 3^rdparty logistics provider. The logistics tender management process is the foundation of that relationship and as such, needs to be conducted very carefully.

It is critical that the tender truly reflects the operational requirements and volumes for the requirement, and clearly states the service levels and performance required. One of the main reasons 3^rd party logistics contracts fail is that operational and volume information is not accurately provided in the tender process, leading to the suppliers inaccurately modelling the requirement. This can then lead to resourcing, capacity and cost issues for the 3PL, which can ultimately lead to service failure.

As well as ensuring the operational requirements and volumes are accurately reflected in the tender, it is also critical that all responses are assessed against a background of the suppliers existing capabilities. A supplier’s business development team may make proposals within the process that aren’t consistent with their operational team’s views and priorities; consequently, it is important to engage with the potential supplier’s operations team, visit their existing contracts, as well as speak with their existing customers.

From start to finish, our consultants will manage every step of the tender process for you

To identify the right logistics partner, and the right solution, it is critical to approach the logistics market with a fully considered and detailed tender. Our logistics consultants can manage the full tender process for you; from identifying the right suppliers, through to data collection, writing all required documentation and managing the tender process from start to finish.

Typically there 9 steps when approaching the 3rd party logistics market with a tender, although this can vary according to the type of operation and the exact clients requirements. The typical 9 steps are: