Many experienced logistics professionals say that tendering logistics services is partly art and science — requiring both analytical rigor and practical judgment honed through years of industry experience.
The Challenge
A mid-size FMCG company needed to outsource its regional warehousing operations across three countries. Previous attempts to run the tender internally had resulted in selecting a provider that failed to meet operational expectations within the first year.
The LAC Approach
LAC was engaged to redesign and lead the tender process. Key steps included redefining operational requirements based on actual business needs, conducting structured market research, and implementing a multi-round evaluation framework.
Key Lessons Learned
- Operational requirements must be defined before pricing discussions begin
- Site visits reveal capabilities that proposals cannot capture
- Reference checks with similar-sized clients are invaluable
- Commercial terms should be negotiated in parallel with operational fit assessment
- Transition planning should start before contract signing
Results
The structured approach resulted in selection of a provider that delivered 15% cost savings compared to the previous arrangement, while improving service levels across all three markets within the first six months of operation.