OUTSOURCING & PROCUREMENT
The successful outsourcing and procurement of logistics support can add real value to the achievement of competitive advantage. However outsourcing logistics and appointing suppliers that provide the right services, under the right commercial arrangement, is a difficult task. Outlining the necessary safeguards that manage the relationship in the tender process is crucial to a successful logistic partnership.
Tholmann DMCC has extensive experience in outsourcing both simple and complex logistics requirements to third parties across an extensive range of industries and types of operations.
Outsourcing support always commences by obtaining a clear understanding of the operational and service requirements and the organizations commercial objectives. Areas we can provide support:
Advising how to structure the operation for outsourcing
Advising on the most appropriate pricing structure
Preparing appropriate data sets
Preparing a detailed specification
Advising on suitable third-party contractors both nationally and internationally
Preparing Invitation to Tender documents
Recommended KPI’S and reporting procedures
Managing the tender process
Evaluating Contractors Submissions
Preparing Contractual Agreements
Assisting with Contract Negotiations
Managing the implementation
Consideration is given to ensuring that performance monitoring is a key component within the reporting process, the pricing system encourages high standards of productivity, and include an appropriate level of flexibility in the light of changing demands.
Tholmann DMCC’s outsourcing knowledge gained from practical and advisory experience allows us to fully understand requirements desired in a third-party logistics service provider. This wealth of experience enables us to support you at each stage of the outsourcing process.
Specification of Requirements
The Specification of Requirements is the foundation of successful procurement. Understanding what is required both now and in the future is essential in preparing the Invitation to Tender and will be key to the contractual agreement. Consideration should be given to possible options to address different ways in which the business might evolve.
When it comes to outsourcing and tender management, Tholmann DMCC’s experience in both supply and client-side environments gives us a unique and empathetic perspective.
We’ve seen how successful relationships are nurtured from both sides and have delivered many solutions that satisfy every need in the chain. Whether it is managing logistics tenders on behalf of client-side companies or designing logistics solutions for 3PLs themselves.
Regardless of the type of logistics operations being outsourced, a clear and accountable process needs to be followed to ensure efficiency of operations. We do this to mitigate risk and ensure implementation is diligent and effective.
Contract & Supplier Performance Management
Supplier Management enables companies to manage their suppliers according to their strategic importance, such that effort is invested in developing deeper relationships with truly strategic suppliers and not wasted on tactical suppliers.
Contract Management enables companies to continually review the performance of contracts to ensure that they are working effectively and delivering expected benefits. Regular review of relevant KPIs with internal stakeholders and review of performance with suppliers ensures that the contract continues to deliver value to the organization and suppliers are meeting expectations.
The tender process is time consuming and costly for both the company and the contractor. Going through the process with a contractor only to dismiss at the end for a reason that could have been identified at the start is a complete waste of time for both parties. Successful companies are only as good as the suppliers that serve them.
Following completion of the Specification of Requirements, Tholmann DMCC will assist in determining which contractors should be invited to take part in the tender process. This will be based upon the companies’ own preferences, our own database and market research.
Contract Development & Negotiation
Tholmann DMCC has extensive experience in the preparation of Agreements for a range of operations within a variety of industries and has developed a well proven structure. For major operations no two contracts are ever the same but many of the clauses may be similar.
A contractual Agreement will not ensure an excellent service, but a well-prepared Agreement will ensure that the relationship is based on a clear understanding of what is required and will provide a fair framework for dealing with opportunities and challenges should they arise.
Procurement Strategy explains how an organization seeks to optimize external spend, procurement costs and other value contributions in a way that is aligned with corporate objectives.
The procurement strategy will also form the basis for defining an efficient and effective operating model, including considerations of insource vs outsourced procurement operations and low-cost country sourcing. The operating model will define organization structure and accountabilities, resource and capability requirements, operational and governance processes and requirements for IT-enablement.
We will help you build a competitive advantage through the development of sustainable, world-class procurement capabilities.
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