Successful businesses regularly assess their core competences. Many companies, however, avoid hiring high-performance service providers for specific logistics functions.
Companies should also assess the contracts they have with logistics service providers (LSP) on a regular basis. To ensure optimal processes and supply chain costs within an organization's own network structures, companies should question whether the quality of the service they are receiving is adequate and whether the providers’ rates are still competitive. If the decision is made to award contracts for parts of or even the entire logistics network, choosing the right partner will require in-depth logistics know-how and the use of the right optimization and analysis tools.
4flow supports tendering projects with industry and process expertise
4flow combines industry and process expertise in the area of transportation and transshipment, warehousing and value-added services in tendering projects. Within the 4PL service framework, tenders are routinely issued for all logistics services purchased for customers on the market.
Typical results achieved by 4flow through re-tendering logistics services include:
- Up to 20 percent cost savings
- Performance improvements through increased service levels, better ability to deliver and information sharing, for example
- Optimal incentives for logistics service providers through service-oriented payment agreements
- Full transparency regarding costs per provider and scope of contract
- Cost-effective recombination of award packages or the dissolution of previously bundled services packages
- Fast decision-making and optimized negotiations
During the negotiations, 4flow supports the analysis phase by using a special RFQ module in 4flow vista®. This makes it possible to compare rate sheets on an LSP level and a regional level, to simulate contract scenarios, and compare the resulting overall costs.
Drawing on experience from a vast number of successful tenders, 4flow offers this result-oriented service for all types of logistic services.
Curious how 4flow supports businesses to select logistics service providers? Find out more in this on-demand webinar with Mars and Shippeo about how Mars established itself as a shipper of choice.
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