OUTSOURCING LOGISTICS

It is estimated that 80% of companies globally outsource some of their logistics operations. But for some organizations with complex logistic systems (eg. distribution and retail), especially in developing markets, the outsourcing journey turns quickly into disgrace and a substantial amount of companies remain unsatisfied about the outsourcing results. Main reasons are:

  • The selected partner does not have the right capabilities 


  • Poor definition of scope, roles & responsibilities, expectations 


  • The poorly defined collaborative framework between the company and the LSP 


The purpose of this service is to identify the optimal Logistic Service Provider for the mid or long-term execution of corresponding contracts covering transport and logistics. 


CEL acts as an independent 3rd party to helps to define specifications, formalizing comprehensive call for tender documents, pre-select most appropriate bidders available in the market, help to define evaluation criteria, review submission and investigate LSP actual capabilities and credentials, and support client with negotiation and contracting. 


 

Why CEL? Simply because we have solid expertise in logistics, long experience and insight of the local market specificities, an extensive network that helps us to challenge and to bring perspectives on commercial proposals, an objective approach to prevent biased decision making. 


Support selection of logistics service providers through the tendering process

KEY ACTIVITIES

  • Define general specifications, governance model, contractual expectations and baseline price for logistics outsourcing 


  • Scout most appropriate Logistic Service Providers (LSP) (usually ~8-12 companies) 


  • Gather basic credentials through the Request For Information (RFI) document 


  • Shortlist 3-5 LSP 


  • Prepare tender documentation 


  • Define Evaluation criteria and weights 


  • Invite pre-selected LSPs to join Tender process (ITT) 


  • Review, evaluation and comparison LSP submissions 


  • Visit and evaluate LSP facilities 


  • Final supplier selection 


  • Contract negotiation 


KEY BENEFITS

  • Providing professional assistance and methodologies in the outsourcing process. 


  • Structured and Ethical tender evaluation 


  • Providing thorough reference check and 
insights of LSP real capabilities beyond 
commercial offers 


  • Identifying optimum “value for money” 
rather than the lowest price 


  • Providing essential decision support 
during the outsourcing decision 


  • Advisory specific to contracting LSPs

©2019 by CEL Consulting.