Consultants in Logistics

Logistics Outsourcing - Top Ten Tips

Logistics Outsourcing - Top Ten Tips

More than half of companies say, when asked, that the operational reality of outsourcing has failed to live up to what they were hoping for.  As is so often the case, expectations raised during the sales process were not followed through once the operation went live.  Whilst in a minority of cases this was down to contractors being deliberately misleading, in the most part it was as a result of a misalignment of what was being offered by the contractor and what the client was expecting. 

So how do you ensure that what you think you are buying is actually delivered:

  1. Research potential contractors to understand their capability
  2. Check on their financial standing and ability to invest to meet future requirements
  3. Check they have a track record of proving similar services – Speak to other customers
  4. Prepare a detailed statement of your requirements – This will become a key schedule
  5. Prepare a data set that properly describes the operation – Highlight particular challenges
  6. Consider the best method of charging – open book, closed booked, agreed cost, productivity guarantees
  7. Consider standard of performance required – KPIs
  8. Prepare a comprehensive contractual agreement – Avoid RHA & UKWA terms if possible
  9. Ensure that the contractor’s response to your proposed agreement is part of the final selection process
  10. Give careful consideration to how the proposals will be evaluated – What weighting should the key criteria be given

Successful logistics outsourcing requires a detailed review of your current and future requirements and a well-structured approach.  Consulting widely within your own organisation is key to ensuring that there is clarity as to what is required.  Davies & Robson has supported companies both large and small in a variety of industries.  If you would like to know how we can assist your company we would be delighted to take your call: 01327 349090

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