|
4flow consulting professionally assists enterprises in requesting quotations for logistics and in selecting logistics service providers.
In selected cases 4flow consulting also supports logistics service providers in responding to requests for proposals from companies in industry or retail. Of course, based on our strict principles, 4flow AG only advises one party in the same bidding process.
The Challenge
In many cases, the structure of the service providers that a company uses has developed hapharzardly and not homogeneously in regard to performance, compensation, and runtime. Simultaneously, it is often questionable whether the most effective, available cost-performance-ratio was selected for each performance.
Our Approach
4flow consulting is familiar with the critical success factors of the bidding process and of the process of selecting service providers. We assist companies thoughout the whole process.
In the first step, 4flow consulting generates a survey of the outsourced services like transportation, warehousing, and value added services. Here we consider the following fields:
- service providers utilized,
- scope of services and volume per provider,
- general conditions and periods of validity (if applicable),
- terms and invoicing per service,
- agreed service per provider or scope of service, as well as
- service delivered (if continuously measured).
Afterwards an internal and external performance benchmarking of the utilized providers takes place:
- During the first step, the outsourced performance, processes and invoicing are compared.
- The different scopes of service are then evaluated against each other.
- Internal best-practice values are identified in this second step.
- Moreover, potentials which can be realized if the internal best practices are achieved are identified.
- To identify potentials, external benchmarks are included in the third step.
 - Benchmarking of service providers by 4flow consulting
In the next step, the future strategy as far as the employment of service providers is concerned is defined:
- Number of service providers employed,
- scope of services of each provider,
- invoicing and compensation of services,
- service levels to be met,
- duration of contract.
The scope of the service packages that need to be solicited for quotation are defined by comparing the present situation and the future strategy. The sequence of the service packages for which quotations are defined is determined by the implementation process.
The bidding process will be assisted by 4flow consulting and proceeds as follows:
- Selection of qualified providers,
- preparation and mailing of the bidding documentation,
- preparation and transfer of the proposal (by the provider),
- audit, evaluation and comparison of the proposals,
- presentation of selected providers and mutual discussion of the proposal
- negotiations and final offer by the provider, as well as
- decision on and awarding of the contract.
 - Bidding document (sample), prepared by 4flow consulting
Results
Typical results that 4flow consulting achieves for its clients by handling the bidding process for logistics services are:
- Cost reductions up to 30 %,
- performance improvements, especially a higher degree of service level, of service availability and of providing information,
- increased transparency of inventory and transportation, as well as
- optimal incentives for logistics service providers by performance oriented compensation.
Return to the overview Monitoring the Implementation Process.
print |
