LOGISTICS OUTSOURCING

Strategically negotiate with logistics service provider to get the best price and service level

Context

Most of the companies will perform tender process for the Logistics Service Provider (LSP) selection based on the cheapest price quotation.

Of course price matters when you negotiate LSP contracts. But what matters more is the understanding of what drives the pricing, and of what makes a service contract worth the rates you agree to pay.

To succeed in the negotiation, a thorough understanding and control of the value-added service provided by LSP is necessary.

Our Approach

1. SCENARIO MODELLING AND BUSINESS CASE + OPERATING MODEL DESIGN

  • Logistics and transport footprint

  • Process description with responsibilities split

2. TENDER SPECIFICATIONS AND LSP LONG LIST PROPOSAL

  • Tender specification document

  • LSP long list identification

  • Selection criteria and process use design

  • Budget and unit cost pre-calculation

3. LSP SELECTION AND CONTRACTING

  • Initiate offer and risk analysis

  • LSP clarification, alignment and negotiation process

  • Final selection support

  • Contract negotiation support

4. PROJECT DEPLOYMENT AND IMPLEMENTATION SUPPORT

  • Project tasks tracking

  • Progress KPI

Case Study

CASE 1: For a world leading chemical manufacturer, Forizons supported with tools and expertise to get the best price and service level from 3PL.

The target operating cost was defined, and new rate structure was proposed for 3PL negotiation.

CASE 2: Forizons helped a beauty product brand with the logistics service provider tender process. The Target Must Price achieved in line with the customer objective and the new operation go live date was achieved per plan.

Impacts

Significant

Cost reduction

Improve

Supplier service level

Improve

On-time delivery

Clients

AIRBUS
Orapi
AIRBUS Defence
loccitane
Tupperware
AIRBUS Heli
Thomson
Eurocop
Ceva
Frans
Safran
Thales
Valeo
Thales Alenia
Technicolor
STVA
Souffiet
SNR
Sigfox
Snecma
SDV
SDMO
SANOFI
Rohm Haas
Saft
Roche
Printermps
NEC
Renault
MBDA
Lesieur
Manuli
Legrand
KKN
Lafarge
Kingfisher
Johnson
JCD
JCB
Helobras
IBM
Group Casino
Gondrand
Geodis
GE
Faiveley
Essilor
Embraer
EDF
DNCS
DWC
DHL
DANONE
Dell
Daher
Cercle Vert
Caterpillar
Bouygues
Carrefour
Biomerieux
Australian
Arcelormittal
Arjowiggins
ATR
Apple
Alocatel
Airfrance
Air France KLM
Aernnova
AIRBUS
Orapi
AIRBUS Defence
loccitane
Tupperware
AIRBUS Heli
Thomson
Eurocop
Ceva
Frans
Safran
Thales
Valeo
Thales Alenia
Technicolor
STVA
Souffiet
SNR
Sigfox
Snecma
SDV
SDMO
SANOFI
Rohm Haas
Saft
Roche
Printermps
NEC
Renault
MBDA
Lesieur
Manuli
Legrand
KKN
Lafarge
Kingfisher
Johnson
JCD
JCB
Helobras
IBM
Group Casino
Gondrand
Geodis
GE
Faiveley
Essilor
Embraer
EDF
DNCS
DWC
DHL
DANONE
Dell
Daher
Cercle Vert
Caterpillar
Bouygues
Carrefour
Biomerieux
Australian
Arcelormittal
Arjowiggins
ATR
Apple
Alocatel
Airfrance
Air France KLM
Aernnova

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