Role Of RFP In A Logistics Outsourcing

Request for proposal

The Request For Proposal

The “Request For Proposal” or “Request For Tender” in the logistics industry is designed to help shippers find the best 3PL providers to meet their needs. It is critical in the supplier selection process. A company seeking an outsourcing supplier will draft an RFP/RFT and send it to a shortlist of suppliers that appear to be suitable candidates for partnership. A logistics outsourcing RFP should be highly detailed and very concise in setting out the company’s requirements for service provision. In various ways, the logistics outsourcing RFP is the basis on which the partnership is built and its quality can make the difference between a successful or failed venture.

The “Must Have” Components of Logistics Outsourcing RFP

An RFP for logistics outsourcing services should comprise of the following components to provide suppliers with a basis for making informed service proposals.

1. A clear and concise overview of the issues driving the outsourcing decision
2. A description of the specific services needed
3. A detailed breakdown of the business requirements (this will make up the bulk of the RFP)
4. The service KPIs to be used for supplier performance monitoring
5. Specification for supplier pricing breakdown (all suppliers should provide pricing according to the prescribed specifications)
6. Specifications for the format of supplier proposals (as with the pricing breakdown, a standard format makes it easier to compare proposals)
7. Company contact details and instructions for submitting a proposal
8. Description of supplier selection criteria

Get in touch with the experts at Tenaxx Logistics today for more information and updates.