The best third party logistics (3PL) in warehouse and distribution

Assignment

Select the best 3rd party logistics provider (3PL) for warehousing and distribution for a FMCG company which fulfils requirements related to food safety, compliance and integrity, relevant experience, industry knowledge, cultural fit, commitment and costs.

Project summary

Make or buy assessment for various geographies across the globe including APAC to assess whether the brand owner should insource or outsource the activities in the market place taking into consideration the growth and availability of providers in the respective territory.

Our approach

• Identification of the main requirements towards the 3PL, including organizational fit, capabilities, licenses, industry know-how and alike
• Launching a Request For Information (RFI) and development of a shortlist of 3PLs
• Development of a Request for Proposal (RFP) capturing the project timeline, scope and project goals, the client’s current network, volumes and products, all qualitative requirements related to warehousing and transport management, the required IT capabilities, suggested contract elements and KPIs
• Questions and answers (Q&A) sessions with the 3PLs
• Detailed review of the proposals and bids made by the 3PL based upon a like for like comparison on financials and the predefined qualitative elements
• Due diligence and site visits to the top three candidate 3PLs
• Final selection of the preferred 3PL based upon a pre-defined balance scorecard
• Contract negotiations
• Implementation support

Result

Within the expected timeline, the client went live without any disruptions, and fulfilled all requirements from a food safety, compliance and cost effectiveness perspective.