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Third Party Logistics (3PL) Evaluation and Selection

Deciding to outsource your company's warehousing and distribution is never an easy task. While cost is certainly one of the major considerations, there are a number of other criteria that are part of the decision making process.

Unmatched 3PL Evaluation and Selection Experience

Logistics Engineering's principal owner and President Bob Cudnik was a Global Director for UPS Supply Chain Solutions, the $7 Billion third party logistics division of UPS for 12 years. Bob knows what questions to ask and can help you establish realistic expectations regarding outsourcing your warehousing and distribution operations.

3PL Selection Criteria

Below is a list of criteria that Logistics Engineering uses to determine what you should outsource and evaluate the third party logistics provider on your behalf:

  • What to Outsource
    • Do I outsource all of my Stock Keeping Units (SKU's) or only some?
    • How do I decide what SKU's to outsource?
  • 3PL Tier
    • What tier 3PL should I use?
      • Tier 1
      • Tier 2
      • Tier 3
    • What are the differences between the tiers?
  • Cost
    • What current costs will I save?
    • Are the 3PL costs competitive?
  • Reliability
    • What is the 3PL providers track record?
    • What are my guarantees?
  • Responsiveness
    • Will my orders be shipped using my current order processing standards?
    • What happens when things go wrong?
  • Information Technology
    • What Warehouse Management System (WMS) does the 3PL provider use?
    • How will his WMS system interface with my Enterprise Resource Planning (ERP) system?
  • Relationship Management
    • Will I be able to have one of my own representatives on the 3PL site?
    • Do I control what orders are being worked on?
    • How will the 3PL provider interact with my customers?
  • Environmental Awareness
    • What is being done to create more environmentally friendly processes and workplaces?
  • Financial Security
    • How financially stable is the 3PL company?
    • What happens if he goes out of business?
  • Locations
    • Are they in the correct locations to serve your customer base?
  • Global Presence
    • Do they have a global presence?

3PL Selection Phases

Logistics Engineering separates every 3PL outsourcing project into three distinct phases. Each phase contains several tasks as detailed below. Logistics Engineering customizes the tasks to meet your specific outsourcing project needs.

You do not pay for consulting work you do not need!

  • Phase 1 - Strategy and Planning
    • Visit Your Site
    • Interview Your Management
    • Develop 3-5 Year Design Criteria
    • Define IT System Interface Requirements
    • Develop Project Schedule
  • Phase 2 - Request for Information (RFI) and Request for Proposal (RFP)
    • Create and Issue Request for Information (RFI)
    • Create Shortlist of 3PL Candidates to Receive Request for Proposal (RFP)
    • Create and Issue Request for Proposal (RFP)
    • Solicit Competitive Bids
    • Evaluate Bids
    • Make Recommendations to Your Company
    • Assist Your Company in Awarding Contract
  • Phase 3 - Coordinate Start Up
    • Schedule Adherence
    • Compliance with Contractual Obligations
      • Equipment
      • Staffing
      • Warehouse Management System (WMS) Functionality
    • Start Receiving New Product at 3PL Site
    • Coordinate Inventory Move
    • Go Live Start Up
    • Monitor 3PL Performance




Contact Information

Bob Cudnik
Logistics Engineering, LLC
517 Patterdale Lane
Blythewood, South Carolina 29016

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