Supply Chain Selecting a Logistics Partner

Having decided to outsource part or all of your logistics activities, it is vital to the performance of your supply chain to select the right partner.

The first stage is to define your logistics requirements clearly and to determine what you want from a supply chain partner.

Formal selection processes involve several stages, which are defined by acronyms that can be confusing. An initial Request For Information (RFI) can be used to identify suppliers that have the capability, experience and desire to carry out the relevant supply chain operations. A document is then issued that describes the logistics requirements in detail and specifies the requirements for responding. This document is variously referred to as an Invitation to Tender (ITT) or a Request for Quotation (RFQ).

Partner selection usually takes place after presentations, reference site visits and detailed contract discussions.

Total Logistics has managed and advised on selection processes for many of its clients, identifying partners that can provide cost-effective solutions combined with high levels of service.