Managing the Outsourcing of your Logistics
Outsourcing your transport, warehousing or overall supply chain function can be a complicated, stressful and confusing experience. Determining what components of your logistics function to outsource, which logistics provider best suits your organization and how to go about the process are all key aspects that you need to get right to have any chance of a successful outsourcing experience. Conversely, the same issues and problems are often confronted by the logistics provider when considering the option to take on a logistics contract.
Lexian offers a comprehensive procurement/outsourcing service to companies of all sizes to ensure the logistics outsourcing is strategically and culturally correct for your company and, if so, then assist in managing the tendering, selection and contract process to ensure a smooth transition to the new outsourced structure. We can provide assistance to either the company intending to outsource or the potential logistics provider.
Lexan’s service is based on;
- Independent, unbiased advice
- Ensuring the motivation for outsourcing is strategically and culturally correct for your organization
- Developing comprehensive and accurate tender documentation using a variety of supply chain technologies
- Assisting in locating and recommending appropriate logistics providers
- Ensuring the best value solution is achieved by considering all aspects of the procurement decision including cultural fit, service, cost and return on investment
- Assistance in structuring the logistics contract for the preferred logistics supplier
- Ongoing monitoring of the outsourcing relationship
The key stages in any outsourcing project are as follows:
1. Logistics Outsourcing Strategy
- Why outsource ? pros and cons
- What currently works and what doesn’t
- What functions to outsource
- Problem areas/constraints
2. Required Solution
- Management arrangement
- Cost target
- ROI ? release of capital
- Performance improvement
- Extent of proposed outsource arrangement
- Expectations
3. Baseline Assessment
- Cost baseline
- Performance measurement
4. Selection Process
- Develop tender documents
- Contract documents
- Assessment of responses
- Selection of preferred supplier
5. Implementation
- Plan changeover process
- Facilitate operations transfer
6. Ongoing Monitoring
- Performance measurement
- Management of expectations
- Facilitating review meeting between parties
- Review and change