Why do you need to optimize your outbound logistics?
In several industries, costs for transport and logistics make up one of the key cost items. A cost ratio of 10% and more to the total costs is not uncommon. That’s why it is of critical importance to be "absolutely precise" for this cost item. At the same time, intensive competition is under way in many areas of the freight forwarding market: ideal preconditions to sustainably reduce prices and conditions through professional and structured tenders without neglecting quality and service aspects in the process. Particular emphasis in the process is on the make-or-buy decision, because a high percentage of in-house manufacturing must especially be monitored for warehousing in many companies, and here, efficiency reserves can frequently be tapped through outsourcing.
How do you benefit from the improvement of prices and conditions in outbound logistics?
- Upturn in profit: As a result of our transport and logistics tenders, savings are generally significant, often in the two-digit percentage range
- Flexibility: Enhanced flexibility is another positive result of the transport and logistics tenders. Fixed costs can, for example, be replaced by variable costs in the scope of outsourcing. Tenders boost flexibility in the transport sector too, since new, high-performance suppliers can be identified and volume newly distributed, in terms of flexibility aspects as well.
How do we optimize your outbound logistics?
Complex transport and logistics tenders follow a five-staged approach:
- Potential analysis and concept development: At the start of the project, potential is first roughly quantified. Here, benchmarks can be used effectively in both the transport as well as in the warehouse area. A basic concept for the future operations must especially be developed in addition for outsourcing (or insourcing) decisions.
- Pre-selection: To pre-select potential providers, a so-called supplier self-assessment (RFI = Request for Information) is used. The key factor here is to involve as many bidders in the process as possible and, at the same time, to not structure the questionnaire in too much detail so that as many potential suppliers as possible submit a self-assessment.
- Tender: The actual tender document (RFP = Request for Proposal) will then only be sent to a limited group of bidders. A confidentiality statement must be signed in advance. The RFP serves two functions: firstly, a potential new supplier must credibly gain the impression that the volume of the commodity group will really be redistributed. Secondly, the tender document’s function is to already clarify as many aspects as possible of a possible contractual relationship in advance. This substantially improves comparability of the offers. At the same time, an advantage emerges in the negotiating process because the supplier now has to negotiate the best deal with his points from the contract to be concluded and not the other way around.
- Final negotiation: Until a new contract is signed, numerous activities must then be coordinated in parallel. This includes the detailing of processes and procedures, definition of IT interfaces and finalization of the contractual framework. For outsourcing projects, additional questions might need to be clarified such as employee transfer, sale of a building or sale of machines and facilities. Due to the complexity of the issues, parallel negotiations can now only be conducted with just a very small number of bidders during this phase.
- Implementation: The implementation phase can be split up into the two steps of commissioning or start-up and regular operations. In the commissioning step, IT interfaces are developed and integration tests carried out. Staff must also receive training and the new processes and procedures need to be trained. Regular operations will then be accompanied by permanent project controlling and compliance with the agreed service level agreements (SLA).
We’d be glad to give you names of references who will convince you of the way we work.
HÖVELER HOLZMANN CONSULTING GmbH
Tel.: +49 (0) 211 - 56 38 75 - 0
Fax: +49 (0) 211 - 56 38 75 - 69
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