Highly Effective 3PL Supplier Selection
- Need to find a 3PL partner?
- Uncertain about what to include in your Request for Proposal (RFP) document?
Conducting a formal 3PL supplier selection process certainly can be complex and a distraction from the day to day. Each step comes with its own unique set of risks, which if not addressed, can seriously undermine the potential benefits of outsourcing.
Many managers struggle to select the supplier solution that delivers the best value - and satisfies everyone's needs in the process. And yet it needs to be done - and done the right way.
If you're going to be a decision maker in an RFP process anytime in the next year, we can help make your selection a little easier and a lot more successful.
“We had an existing contract expire. With New World's help we have taken 13% off our current cost base - a great result. New World were refreshing and instrumental in delivering tangible results to the business. Richard is a no-nonsense operator with the customer need's firmly in focus. If you're considering New World - do it.”
National Customer Service & Operations Manager
Introducing... The New World 3PL Supplier Selection Service
Offering a professional approach to 3PL supplier selection and practical methods for ensuring you select a supply chain partner to suit your immediate and long term needs.
In our experience, despite the best intentions, the RFP process followed by many organisations is all too often badly flawed. Many RFP’s are poorly written using totally inadequate information for project estimation purposes. Far too often, the lowest value supplier (often the lowest price) is selected, which can be painful and costly. Departmental managers who have to live with the chosen supplier solution are often in the dark about how to get what they need from the process.
Why does this occur?
- Lack of understanding and/or ability to communicate business requirements. You may be communicating what you believe to be important, but not fully understanding the complexities of the business now AND in the future.
- 3PL supplier selection primarily made on project cost, with minimal understanding of the vendor’s actual cost drivers.
- Pricing templates that do not enable easy ‘apples-to-apples’ pricing comparison.
- Vague and subjective evaluation criteria unsuited to an objective comparison of vendor capabilities.
- Lack of clear communication and/or understanding of internal stakeholder requirements.
And the list goes on and on…
You can avoid these problems by:
- Setting the proper scope for your RFP project.
- Knowing what questions to ask based on best practices.
- Having dozens of RFP and pricing templates to build on.
- Having access to evaluation techniques from similar projects as guidelines and templates for creating your RFP.
- Identifying the most suitable supply chain vendors for the project.
- Developing realistic and objective evaluation criteria to ensure your needs are matched to the vendor’s capabilities.
- Preparing a clear, concise report summarising the costs, capabilities, benefits and risks of each vendor’s RFP response.
- Outlining specific (and immediately actionable) steps you can take to ensure the smooth implementation of the successful vendor’s solution.
- Managing the transition to the new vendor’s solution (as required).
The New World 3PL Supplier Selection Service
That's where we come in. At New World, we have managed the entire 3PL selection process for organisations seeking partners to create logistics implementations for projects ranging from $1 million to $500 million in size. Most importantly, we understand the benefits and risks associated with working with each 3PL supplier and will help you make objective and informed decisions.
So how do we work together?
There are three ways we can work together, depending on the level of assistance you desire.
Perhaps you are confident you have the time and full range of skills and simply want a set of RFP and pricing templates? Our RFP Template Package has been designed specifically for the generic Australian market, and is easily adaptable to suit your logistics/supply chain requirements.
Download a sample of the Table of Contents page of the RFP Template Package HERE
Contact Us to purchase the full RFP Template Package for $1995 (includes one hour consulting with me to get you started in the right direction).
2. Coaching & Mentoring - Assisted RFP
Many of our clients elect to manage the selection process themselves. With this option, you’ll have access to our experience to help you at critical stages. Most importantly you’ll have an independent and reliable expert – on call, when you need it.
We'll guide you through the steps necessary to identify, evaluate, select and implement third-party relationships.
3. Fully Managed 3PL Supplier Selection Service
When the stakes are high, why spend precious time and resources on worry, uncertainty and indecision? We have the experience you need to handle the details of all aspects of the process while you stand back, maintain a high-level view and make smart decisions.
With this fully managed service, we will determine your outsourcing relationship needs and then provide the expertise to find and choose the right 3PL supplier; outline the service parameters; establish service agreements and manage the partnership for long term success.
Need more information or have additional questions?
Just complete and submit the web form above and we’ll be in touch to help you select the type of RFP assistance that best suits your needs..
Look forward to hearing from you.
Richard Koch - New World Business Solutions
Specialists in Supply Chain Strategy, Facility Engineering & Design
+61 2 9401 9152