Project Management of Outsourcing

While companies have been outsourcing for many years at times these contracts fail to live up to their potential.  We have successfully managed many outsourcing projects relating to all elements of the supply chain. Because we have perfected a collaborative process from beginning to end including as necessary successfully renegotiating existing contracts or even managing contract terminations we have the insights and experience to help you avoid mistakes.

Usually there is more than a single reason for failure and the 3-4PL may be dissatisfied as well. For example, (1) before outsourcing a company may not have developed an accurate internal baseline to measure against, and (2) no risk analysis was done and the contract did not sufficiently protect the company.  If you are contemplating outsourcing or even additional outsourcing you should examine your motives (such as cost reduction, service improvement, capital investment avoidance) and work towards the right solution without overlooking key decision criteria.

Our approach takes all of the above into consideration and since there are 100s of 3-4PLs of various sizes and skill sets, which is the right fit for you long term?

The process is usually laborious, and most companies lack the experience of dealing and negotiating in this sector on a daily basis, however we can collaborate with you and help you achieve success.

Our basic process consists of:
  • Gathering right operations data and information, validating accuracy, establishing your baseline
  • Establishing objectives or desired outcomes in concrete terms, easily understandable
  • Developing criteria for 3-4PL bid list, conduct process to select the most qualified bidders
  • Narrowing the field, conduct weeding out process, run the RFP process
  • Conduct comparative analysis to current spend, to RFP proposals, consider what might change
  • Conduct due diligence with great thoroughness, site visits, references, risk analysis
  • Assist with final decision/selection process, weigh all advantages & disadvantages
  • Negotiate pricing, set your contract conditions and negotiate a fair but protective contract

TSC project management has proven to save considerable expense and time as well as delivering the right solutions with expert implementation help.

Want to know more?  Call us today at 888.652.9590