3PL Outsourcing
- Write the Request for Proposal (RFP)
- Explain the reasons for outsourcing.
- Provide specific, clear description of what functions are being outsourced.
- Include large sets of historical data and operating parameters.
- Scrub the data - remove faulty records.
- Provide key service and operating assumptions for 3PLs to incorporate into their solutions.
- Describe the selection criteria. This communicates what capability and pricing attributes are most important.
- Avoid having 3PLs make many assumptions.
- If the RFP or the data set are at a high level, each 3PL response will have unique assumptions, making it difficult to compare pricing.
- High level data will yield high level responses with extra margin built into the pricing.
- Specify how you want pricing presented, so you can compare across bidders.
- Issue the RFP, allowing at least three to four weeks for responses.
- Host site visits to your operations to give the 3PLs clear understanding what you are outsourcing.
- Good data and site visits enable the 3PLs to sharpen their pencils when pricing a solution.
- Site visits minimize surprises during implementation of the 3PL operation.
- Invite the 3PLs to present their proposals in an oral presentation after they have been received.
