3PL SEARCH AND SELECTION

Scope

Our 3PL search and 3PL selection service covers the following:

  • 3PL Geographical Location

  • Evaluating Insourcing versus Outsourcing

  • 3PL RFP Development

  • 3PL RFP Management and Bid Negotiation

  • 3PL Benchmarking

  • 3PL Contract Negotiation

  • 3PL Implementation


Objectives

Our 3PL search and 3PL selection objectives typically include:

  • Reduce 3PL costs

  • Improve 3PL quality and service level

  • Enable growth

  • Improve customer service


Deliverables

Our 3PL search and 3PL selection deliverables typically include:

  1. Geographical location identification

  2. Identification of reputable 3PL partners that have the capabilities to handle your business and for whom your business is attractive.

  3. Detailed RFP outlining all volumes and operational requirements

  4. NDA management and bid distribution

  5. Responding to RFP questions

  6. Managing 3PL responses and evaluating proposals

  7. Leveling and negotiating 3PL bids

  8. Detailed assessment of financial and qualitative impact

  9. Recommendation of the best provider

  10. Contract negotiation

  11. Transition planning to the new 3PL

  12. Implementation management

  13. Ongoing support


Methodology

3PL Search and Selection

  1. Project Kickoff: Learn operational requirements and scope of business needs.

  2. Gather Data & Information: Collect quantitative and qualitative data that pertains to warehouse handling requirements.

  3. Process & Data Validation: Validate the process procedures and quantitative data to ensure an accurate depiction of the volumes and requirements.

  4. RFP Development: Write an RFP that contains critical information for the candidates to provide complete and reliable bids in a comparable format.

  5. 3PL Identification: Identify reputable 3PL partners with the capabilities and requirements to run the distribution successfully.

  6. RFP Management: Make your business attractive and guide the bidders to offer competitive bids.

  7. Bid Evaluation & Leveling: Assess proposals in detail, develop a strategy for negotiating with selected providers, and assist in negotiations to help with the 3PL selection.

  8. Site Visits: Develop a comprehensive agenda and utilize our expertise to assess the finalist providers’ operational and business practices and help with 3PL selection.

  9. Contract Negotiation: Establish a negotiation strategy with one or more providers and assist in negotiations to ensure you get the best deal for your company.

  10. Implementation: Plan and manage the transition from the current state, whether existing 3PL or in-house, to the new 3PL partner.

  11. Ongoing Support: Provide 3PL management and auditing support to ensure a long-term, successful partnership.


Why establish?

  1. Full-Service Partner – Establish has the capabilities to support you throughout every step of the process, all the way from discovery through implementation and beyond.

  2. Market Knowledge & Experience – Our extensive background in working with 3PLs means we have strong working relationships with 3PLs of all sizes and expertise in the US and abroad. We are familiar with their operations and service offerings and have well-established connections with them.

  3. Warehousing & Supply Chain Expertise – Our experience from completing over 1,000 warehouse design and improvement projects provides us a unique advantage and authority when outsourcing. We speak their language and know their business.

  4. Bid Management & Detailed Analysis – Our data-driven tools, resources and methodologies developed from our deep history in the selection process enables a comprehensive tender to ensure a productive undertaking for our clients.

  5. Right Price for the Right Services – We make sure that the bidders completely understand all the details of the business they bid on. This eliminates surprises after signing and also the need for buffers in the pricing.

  6. 3PLs Suited for YOUR Business – We pre-screen a large number of potential bidders, inviting those specializing in your type of business with a need for new customers at locations that are attractive to you. This creates a competitive landscape to ensure a strong, cost-effective bid.

  7. Levelled Playing Field – Detailed RFP specifications and a high-touch process ensures comparable bids. This guarantees a competitive value-driven bidding environment with no excuses or hidden costs.

TOOLS & METHODS

Establish’s Logistics Best Practices™

Assign™

Establish Workbooks & RFP Templates

Establish 3PL Evaluation Templates

Establish SLA Templates

WHITE PAPERS & CASE STUDIES

Establish has a long track-record within 3PL search and selection. The case studies below are just a few examples of achievements from Establish supply chain consultants together with clients within 3PL search and selection.

How to Choose the Right 3PL Partner

Utilizing a third-party logistics provider (3PL provider) has several advantages but finding the best 3PL partner can be a difficult task. Read about Establish’s approach to 3PL search and 3PL selection that has brought us a lot of success helping our clients.

Case Study: Third party logistics (3PL): Search and Selection

Establish helped a multinational animal healthcare provider consolidate its distribution operations with the search and selection of the ideal 3PL.

Determining Where to Conduct a 3PL Search in Europe

Establish conducted a network optimization study to determine the optimal location to conduct a 3PL search in Europe.

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