Is Logistics Outsourcing Right for Your Business?
Find the BEST Logistics Partner for your Business with the help of our Supply Chain Outsourcing Consultants.
Companies that Trust Us
Logistics Outsourcing can be a Nerve Wracking Experience!
Outsourcing initiatives tend to be infrequent which means they are not the kind of business project that you can easily become familiar with, but you’re placing responsibility for the performance of your business in the hands of a third party so the repercussions of the decision are long term.
No wonder people lie awake asking:
- How do I know if I’ve chosen the right third-party logistics partner?
- How do I choose from the many providers that offer the services I need?
- What can I do to ensure a partnership that benefits my business and my customers?
- How do I manage logistics performance when I don’t have direct control of operations?
- How do I negotiate a well-balanced 3PL contract that covers and protects my business for several years?
Gain Clarity on Your Logistics Outsourcing Options
Are you considering the possibility of outsourcing your transport, warehousing, logistics or other supply chain operations, but feeling concerned about the level of risk involved?
Perhaps you’re fearful that as attractive as the prospect appears, it might not prove to be the best option for your business.
Maybe you’re already engaged in an outsourcing contract with a 3PL, but face challenges with performance management, service, or other elements of the relationship.
If you feel that an unbiased, external perspective would offer some clarity, and help you make the right decisions to move forward…
You’re welcome to chat to one of our Supply Chain Outsourcing Consultants located in Sydney, Melbourne, Brisbane, Perth, Bangkok and Vietnam today. Just click the “talk to a consultant” button above.
Our supply chain outsourcing consulting assignments have ranged across the world and include countries such as Argentina, Australia, Brazil, Cambodia, China, Egypt, Fiji, Hong Kong, Indonesia, Japan, Korea, Laos, Malaysia, Mongolia, New Zealand, Papua New Guinea, Philippines, Singapore, Thailand, United Arab Emirates, United Kingdom, United States & Vietnam.
To discuss ways we could offer help and guidance with your logistics outsourcing needs…
Click the button to book a call with one of our Supply Chain Outsourcing Consultants.
Outsourcing Plans and Provider Evaluation – What’s Involved?
Developing and executing an outsourcing strategy, including selecting providers, and negotiating a solid contract, requires a thorough and meticulous approach.
Considerations during planning and selection include:
- The need to ensure thoroughness and appropriate ethics in provider selection and evaluation
- Finding a provider that is of a suitable scale and fits well with the culture of your business
- Attaining a partnership that represents the best value, rather than the lowest cost
- Assessing various contract models (conventional, performance-based, other) to determine the most suitable governance and payment solution
- How to maintain objectiveness and avoid selection decisions based on emotion
- Realistic timescales for the project, from launch, to final vender selection and transfer of operations
- Assessing how many potential providers should be invited to tender, and what types of provider should be included in the process
If it sounds very complex and involved, it’s because it is—but it becomes easier with the help of people who do this regularly, are not emotionally invested, and have NO AFFILIATION with 3PL providers.
At Logistics Bureau, we’ll be pleased to help your business make the right outsourcing decision, and, if you choose to enter into an outsourcing contract, to get the best from it.
We can work with you to:
- Assess your current operations and help you decide which, if any, elements to outsource
- Select the most suitable outsourcing partner, based on your business’ culture, scale, and needs
- Negotiate and implement your outsourcing contract
Supply Chain and Logistics Outsourcing Case Studies
Competitive Tendering for International White Goods Company
In order to find and evaluate alternative freight carriers and improve service, we applied the Logistics Bureau Competitive Tendering methodology—an internally developed approach used successfully in many similar projects.
- Our tendering solution helped the company achieve an annual freight cost reduction of 6%.
- Customer service performance also increased as a result of this successful project.
3PL Outsourcing Project: International Electronics Company
We took a traditional outsourcing approach in solving the client’s problem, commencing with expression of interest (EOI) and requests for quotation (RFQs) from selected providers. The closed tender initially involved nine companies, reduced to five for the RFQ phase.
Logistics Bureau prepared all documentation related to the EOI and RFQ processes, and facilitated the entire selection process. Our methodology made it easy for the client’s management team to evaluate and rank the providers’ quotations. After receiving presentations from the providers, participating in facilitated discussions and site visits, the client was able to make a confident final choice of partner.
- The transition to outsourcing was completed smoothly.
- The client secured a new 3PL partnership, the contract catering for current and future needs.
- Service levels were maintained throughout and after the transition.
- The client benefited from more effective processes, space utilisation, and use of resources.
- The project led to annual cost savings approaching 10%.
Transportation Strategy Evaluation for Cosmetics Company
Our first step was to benchmark the company’s transportation costs, an exercise which revealed that actually, those costs were among the lowest in our database. As a result, we recommended that instead of tendering for alternative providers, the company should negotiate a mutually beneficial, long-term contract with its existing partner.
Logistics Bureau facilitated establishment of the contract, which commenced after a six-month period of negotiation between the company and its transportation provider.
- With our help, the client established a contract with the following benefits:
- Appropriate KPIs in performance indices
- Attractive market rates for parcel transportation
- Assurance of no rate increases over the duration of the contract
- The contract enabled forecast savings of $1 million over the three years from contract commencement, due to the avoidance of what would otherwise have been additional expenses.
Collaborative Tendering Brings Big Savings to Clothing Brand
For this project, we embarked on a collaborative tendering process, which involved the following five phases:
- A shared-vision day, leading to the submission of expressions of interest from providers able to meet the company’s high-bar expectations.
- Demonstrations from prospective service providers.
- Supply chain process mapping and redesign.
- Issue of request for tender.
- Provider evaluation and selection.
- The company benefitted from improved supply chain processes
- Unnecessary waste, such as double handling, was removed from the supply chain operation
- The company achieved a 24% reduction in transportation expenditure, amounting to several million dollars.
We’ve been Helping Companies Find the Right 3PL Provider for 30 Years
We have a long and successful history in provider-agnostic, supply chain outsourcing consultation, covering everything from sourcing to last-mile delivery.
Working with us, you’ll gain key advantages such as unbiased advice and support, and a proven methodology for matching businesses with the right service provider.
Unlike most businesses, we facilitate outsourcing, tendering, and 3PL agreements on a regular basis, so we’ve experienced all the traps and pitfalls that await the unwary, and know how to prevent them from getting in the way of a harmonious client-provider relationship.
We specialise in offshore and onshore outsourcing, and we’ve worked with companies across more than 30 countries, completing hundreds of projects for clients in a broad range of industries.
Our services are not offered exclusively to outsourcing clients, so if your company is a 3PL, with the need to develop a solution for a customer, implement a new contract, or improve performance of an existing one, we’re ready and waiting to help.
It All Starts With a 15-Minute Call
We’re here to help you find the best 3PL provider for YOUR business.
If you’re looking for a new Logistics Outsourcing Partner…
Need some help to fix an existing partnership…
Or you’d like to discuss your outsourcing plans with an expert…
You’re welcome to book a FREE consultation call to discuss it with one of our Supply Chain Outsourcing Consultants.
There’s no obligation for you to pursue our involvement after the call. We’ll be pleased to use the 15-minutes to review your circumstances and offer some tips and advice for getting your project underway.
Where You’ve Seen Us
Step 1 in Outsourcing Improvement: Talk to Us
Not sure if your business would benefit from working with a 3PL?
Ready to outsource and looking for help?
Already outsourcing and seeking performance improvement?
Our 3PL and outsourcing consulting service range is extensive, and we can tailor a solution to your needs—or just offer some useful advice if you prefer. Get in touch to learn how we can help you succeed with supply chain outsourcing.
Fill in the quick form to chat with a Logistics Bureau Supply Chain Outsourcing Consultant.
You can also call us at +61 (2) 8212 9775 or send an email to [email protected]