Warehousing RFTSuccessful Outsourcing relies on a number of essentials.  But a vital element, is the RFT or Request for Tender.  So I thought it might be useful to share a suggested contents list for a Warehousing RFT. I’ve been involved in Logistics Outsourcing since 1994, and have assisted dozens of companies through the process since then. Across all industries. So I hope that this information will help you in your own Outsourcing Success. One of the things that I often see companies get wrong when preparing to outsource, is a poorly structured RFT. There’s a lot that needs to be included.  If important sections are missing it can set up the whole outsourcing relationship for failure. So I hope this example contents page will help you from missing anything vital in your own RFT preparation. And please do comment below.  Maybe you think that there are other key sections that should be included?

Example Warehousing RFT Contents.

TABLE OF CONTENTS

1 BACKGROUND
1.1 Purpose and Structure of Document
1.2 The Client Organisation
1.3 Our Business Environment
1.4 Our Need for Change and Timing
1.5 About this Tender
1.6 Overview of Required Services

2 SCOPE OF OPERATIONS
2.1 Location of Facilities 2.2 Receipt of Product
2.2.1 General Requirements and Timing
2.2.2 Discrepancies and Damaged Goods 2.3 Storage of Inventory
2.3.1 Composition of Inventory
2.3.2 Collateral and other Materials to be stored
2.3.3 Security of Inventory
2.4 Order Picking and Dispatch
2.4.1 Kitting
2.4.2 Packing of Orders
2.4.3 Invoices
2.5 Transportation
2.5.1 Use of Subcontractors
2.5.2 Service Levels
2.5.3 Proof of Delivery (POD) Requests
2.5.4 Delivery Tracking and Documentation
2.6 Returns
2.7 Scan-Pack Requirements
2.8 Volumes to be handled
2.8.1 Electronic Data Provided with this document
2.8.2 Promotional Periods
2.8.3 Receipt Activity
2.8.4 Picking Activity
2.9 Consignments

3 INFORMATION TECHNOLOGY
3.1 External System Interfacing Requirements
3.2 System Capacity and Infrastructure Requirements
3.3 System Security Requirements

4 QUALITY ASSURANCE
5 IMPLEMENTATION PROGRAM
6 VALUE ADDED SERVICES AND INNOVATION
7 Our Desired Approach to an Outsourcing Partnership
7.1 The Desired Relationship
7.2 At the Strategic Level
7.3 At the Operational Level
7.4 Commercial Arrangements
7.5 Performance Based Pricing
7.6 Cultural Issues & Expectations

8 ACCOUNT MANAGEMENT, COMMUNICATION AND REPORTING
8.1 Management Structure and Approach
8.2 Communication
8.3 Performance Reporting

9 TENDERERS CORPORATE OVERVIEW
9.1 Company Focus and Ownership
9.2 Delivery Systems Utilised
9.3 References
9.4 Financial Background
9.5 People Management

10 INSTRUCTIONS TO TENDERERS
10.1 Confidentiality
10.2 Limitation of Liability
10.3 Inability to Tender
10.4 Rights Reserved by
10.5 Tender Submission
10.6 Tender Process
10.7 Tender Assessment
10.8 Interviews with Short Listed Tenderers
10.9 Instructions for Requesting Clarification or Additional Information
10.10 Contact with Client’s Customers
10.11 Validity of Offer

11 REQUIRED RESPONSE
11.1 Proposed Solution
11.1.1 Business Environment
11.1.2 Warehouse and Distribution Operations
11.1.3 IT Solutions
11.1.4 Implementation Plan
11.2 Costing and Pricing of Proposed Solution
11.3 Management Approach
11.4 Preliminary Comments on Draft Agreement
11.5 Tenderers Corporate Overview
11.6 Closing Date and Address for Submission

Other Suggested Content.

Safety  (Howard Haysom from Toll)

Yes, it’s a lengthy document!  But it needs to be. Typically it might run to 50+ pages (12,000 words).  There’s a lot to be covered and explained.  Lack of detail at this stage of the Outsourcing Process can lead to disaster later. Watch your inbox as I’ll be sharing more information and tips on Logistics Outsourcing in the coming weeks. What else would you add to a Warehousing RFT?

Do please comment below.    (Sorry we had a website glitch on Friday and lost the previous comments)

Best Regards,

Rob O'ByrneRob O’Byrne
Group Managing Director
Email: [email protected]
Phone: +61 417 417 307

P.S. This sample contents page is actually just one of the bonus downloads from my Book on Logistics Outsourcing.

P.P.S. Here are some of my other Blog articles on Logistics Outsourcing:
Logistics Outsourcing Tips Part 1
Logistics Outsourcing Tips Part 2
Logistics Outsourcing Tips Part 3