Implementation of a new 3PL

Implementation of a new 3PL for a Centralized European Distribution Center.

Assignment

We were requested to support the implementation of a new 3PL for a Centralized European Distribution Center that included the move to a new location to a new 3PL. 

Prior to the implementation project we conducted for the client a location study as well as the logistics procurement project to select and contract the preferred Logistics Service Provider (LSP or 3PL).

Project summary

We conducted for the Client a location study to define whether the current location is still optimal, or whether to shift to new location in Europe.

Dissatisfaction about the services and the relation with the incumbent 3PL made the Client ask us to run a tender to select a new 3PL. After a careful logistics procurement project with detailed due diligence, led by BCI, a new 3PL was selected and contracted.

Subsequently we supported the implementation and change.

Our approach

BCI offers various levels of support for the implementation and change. Our typical roles can include:

  • Ownership role, where we are responsible from A to Z
  • PMO (Project Management Organisation) role, typically filling the gap in your specific project
  • SME (Subject Matter Expertise) role, where we provide an expert to cover a capability gap
  • Facilitator, owning the process and develop capability in your organization

In this specific project the Client opted for a combination of PMO support role and specific Subject Matter Expertise for specific topics.

In the PMO role we fulfilled among others the below functions:

  • Support the creation of the detailed planning: Is it complete, what does client or 3PL underestimate or forget
  • Risk management: Identifying potential risks and developing strategies to mitigate them
  • Weekly sparring with the Clients project lead
  • Validating 3PLs detailed plan and challenging the 3PL on timeline and risks
  • Provide input for steering committee meetings and challenge Clients project lead to report to the steering committee
  • Quality Management: Support to set quality standards

In the Subject Matter Expertise roles we fulfilled among other the below functions:

  • Cost validation and benchmarking for extra work for ‘out of scope’ activities
  • Validating process design and functional requirements to ensure quality and completeness
  • Contracting support
  • Validating the test plan
  • Pre go-live auditing and support go/no-go decisions

Result

The project is successfully implemented and reached the contractual agreed service levels and KPIs at the agreed cost levels. A culture of pro-active continuous improvement was installed to ensure a further improvement of services and costs in the future.