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3PL Outsourcing & Tender Management

When you’re looking to run a tender for a third-party logistics provider (3PL), it’s important that a robust procurement process is in place. That’s where we can help – we’ll work with you to manage the whole process, from initial strategy development through to vendor selection and implementation.

About our service

Third party logistics outsourcing & tender management

At Hatmill we offer expert 3PL outsourcing and tender management solutions tailored to provide you with the right logistics partner.

We specialise in running detailed and carefully planned tendering processes to find you the best 3PL for your needs. Our methodology includes assessing your current logistics needs and solutions, using our network of 3PLs to match likely providers, and leading a process that is clear, efficient and based on our 15 years of doing similar projects for others.

What is 3PL outsourcing?

3PL outsourcing is when a business uses a third-party to provide certain logistics functions. These providers can manage aspects of logistics such as warehousing, transportation, and distribution, allowing companies to focus on their core competencies instead. 

There are many benefits to 3PL outsourcing when it’s carried out properly. These include:

  • Enhanced operational efficiency and flexibility
  • Cost savings through economies of scale and expertise
  • Access to advanced technology and specialised logistics capabilities
  • Scalability to accommodate business growth or seasonal fluctuations
  • Focus on core competencies while outsourcing non-core activities

Process & considerations

The Hatmill approach to 3PL outsourcing

When it comes to 3PL outsourcing, we have years of experience and can help you find the ideal logistics partner for your business. Working with businesses in multiple sectors, we’ll guide you through the tendering process and explain things in an easy to digest way. 

Our third-party logistics outsourcing and tender management process looks like this:

Needs assessment & strategy development

We’ll begin by assessing your current logistics operations and needs and defining strategic objectives for outsourcing. This involves challenging the logic of outsourcing, examining what 3PLs can provide and building clear objectives for outsourcing.

Vendor identification & prequalification

We’ll identify potential third-party logistics (3PL) providers based on their capabilities, industry experience, financial stability, and alignment with your business goals.

Request for proposal (RFP) creation

A detailed RFP will then be developed outlining project scope, service requirements, volumes, customer channels, performance metrics, and contractual terms. This document will serve as a guideline for potential vendors to submit proposals.

Proposal evaluation & selection

Proposals will then be reviewed based on predefined criteria, including cost, service levels, contractual terms, technology offerings, and scalability. Interviews and site visits will be carried out to assess vendor capabilities and ensure alignment with your logistics strategy.  This process will reduce the number of potential providers to enable more detailed evaluations to take place.

Negotiation & contract finalisation

Terms and conditions will then be negotiated with the selected vendor to finalise contracts. Pricing structures, service level agreements (SLAs), key performance indicators (KPIs), and contingency plans for risk management will all be addressed during this time.

Implementation

We will then work with you and the selected 3PL to develop transition plans. We will provide project support and leadership to manage the risks of the transition. This is the biggest area of risk for you, and needs appropriate resourcing. 

“I have used Hatmill on a number of occasions ranging from a single day’s consultancy for advice and support on a specific topic, right up to much larger projects. I have always found the team engaging, pragmatic and with a real focus on delivering agreed outputs.”

– Neil Griffiths, Divisional Director – Logistics, Arco

Managing the tender process

The tender process will be closely managed, and all responses evaluated and scored fairly using a balanced scorecard approach. This will include modelling the commercial impact of each supplier. We will evaluate responses against pre-agreed parameters to identify and recommend the right supplier for you.

Performance monitoring

Once operations with your new 3PL provider are in a steady state it’s critical to implement a cadence of performance management and monitoring. It’s critical that clear communication channels are established to manage volume fluctuations, resource planning and performance review – all of which we can take care of.

FAQs

What should you know?

  • A reputable third party logistics provider can ship at higher volumes and therefore negotiate competitive shipping costs. They can also help you scale your business without increasing headcount, thus saving money. 3PL providers often have access to software and developers that can deploy new technology solutions more efficiently than doing so in-house.

  • Many industries can benefit from 3PL outsourcing, particularly manufacturing, retail, healthcare, and automotive businesses. The key to understanding the potential benefits of outsourcing is knowing where the improvement opportunities are and how a 3PL can help unlock them.

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