Watch this worst-case scenario roleplay (starring Rob as John Jones – the customer – Logistics Manager from OZ Health, and starring Rob again as George Smith – the 3PL Provider – Ops Manager at AAA Distribution)
Take a closer look at how John fails to do the following points:
1. Establish clear outsourcing objectives
2. Identify what is being outsourced
3. Approach suitable suppliers
4. Provide detailed data and service needs
5. Structuring the RFT to support easy comparison of offers
6. Adopt a rigorous and objective evaluation
7. Undertake careful joint implementation planning
8. Manage the contract in line with agreed KPIs
And to be fair George also failed to keep in mind these things too:
1. Not all business is good business!
2. Ensure requirements match your capabilities
3. Take a holistic view of the customer
4. Raise any data concerns with the customer
5. Submit a confirming bid first, then other options you have
6. Ask what evaluation criteria are being used
7. Resource the implementation with a solid team
8. Raise potential issues early and suggest solutions
So you’re the judge, whose fault it is?
Editor’s Note: This post was originally published on March 25, 2020, under the title “What Goes WRONG in Logistics Outsourcing? (Role Play)” in Logistics Bureau’s website.