Updated: Jun 23, 2021
With years of warehouse process-, storage- and systems engineering experience DCwise can support all warehousing related challenges. In this post we high-light the "benchmark" or "tendering" of the logistic services that you outsourced to Third Party Logistics providers.
A common question is if your warehouse operational performances and costs are in line with the industry or your competitors, independently if those services are executed by a Logistics Serviced Provider or your own operation. Especially when part or the full solution is (or can be) outsourced the question rises if this is done at a competitive cost for the perceived quality.
⭐ Regular benchmarking or even tendering is maybe not as common in warehousing as for example in transport, but the benefits of better bottom line impacts cannot be stressed enough! Our clients have been able to gain two-digit percentages in both service offering and cost.
With all the complexity of an operation, especially nowadays with the changing logistical playing-field (needs, technologies, and so on are rapidly changing) major impacts on cost and quality are potentially available.
👉 Therefore the main advice is to regularly do a benchmark (or even tender) to validate if the current solution is still the proper one.
Key in this process is to compare "apples with apples" or to find a way to compare the "apples to oranges". As logistic playing field is diverse and changing constantly, this is often not as simple as it sounds.
👉 DCwise strongly advises not to use exclusively commercial considerations to compare different offers; the evaluation should also be based on (more subjective elements such as) future potential, flexibility/adaptability to changing needs while these become more and more relevant.
⭐As this process is not such a common process for many organizations DCwise is available to assist your organization in defining your logistic requirements, activating the market for your benefit!
Based on our logistical experience we can clearly:
- Map out the business requirements
- Perform the communication to the different parties to generate alternative solutions/offers
- Analyze and compare the solutions on different dimensions (price, quality, etc)
- Assist in driving a decision and related improvements
- Assist in negotiation, contracting and transition
More interesting information can be found @ our blog.
👉 If you want to know more see DCwise.eu
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