3PL Cost Reduction (Purchasing & Procurement)
Effective cost management and reduction in purchasing can be your road map to achieving your most critical organisational objectives. With careful planning and good cost reduction techniques and planning, We will ‘add value’ to your business by reducing your cost (10-30%), improving your budget forecasting, introducing the latest ‘Best Practice’ and standardising your logistic spend data. We do it all without using any of your resources or disrupting your day to day business activities.
Whilst tenders are often the most effective method to get the most out of a supplier, most companies do not have the expertise, time or budget to run such a process. We have developed a tried and tested process that applies all the fundamentals of running a tender process so our clients realise their savings in a relatively short period of time.
It is by no means all about ‘savings’.
Tender Objectives (if appropriate):
• Achieve Max benefit of Economy of Scale
• Establish a Preferred Suppliers List
• Improve and simplify logistics budget forecasting
• Identify key process improvements and cost saving opportunities within 3PL consolidation
• Manage relationships with current and potential suppliers for all
Outbound/Inbound Domestic and European logistical requirements.
• Develop full understanding of current cost base for all logistic transportation modes.
• Challenge current cost base, through negotiation, benchmarking and tender activity as appropriate.
• Manage the tender / bid processes by dealing with all 3rd party suppliers required
• Achieve savings over a fixed cost contract period of up to 2-3 years.
• Develop and manage relationships with key stakeholders across the business (in order to raise procurement profile within Logistics).
•Compile appropriate Tender Document/Contract/Agreements (subject to ‘Legal’ Team confirmation if required).
• Negotiate supply terms and contracts in line with standard terms and conditions.
As part of the Tender Service (if appropriate ) we offer a very detailed:
Data Gathering & Analysis Report, Supplier Assessment & Suitability Report, Service Level Report (from each site), Compilation of Tender Documents/Confidentiality Agreement/Quality Assurance Agreement and finally a ‘draft’ copy of your Terms & Conditions Contract (all relevant to the tender).
Our competitive sourcing saves your logistics costs for:
1. TRANSPORT & WAREHOUSING:
Global Transport Services, Milk runs, Domestic Overland (Plts & Bulk), International Overland (imports) International Overland (exports), Special Carriage, Airfreight, Sea freight, Courier (Express) Service, Parcel Service, Other Delivery Services, Warehousing.
a) Logistics Outsourcing and Tender Management
We have a background of working with 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-model Transport and Distribution logistics, warehousing and freight tenders.
b) Logistics Outsourcing Experience
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 10% to 30% can be achieved.
Every client is different. We work in whichever way suits you best - but we will always follow strict procedures, to ensure that every part of the procurement process is provided for.