How long does it take? This question arises frequently. The answer varies depending on the circumstances.
Let’s examine two contrasting examples: one that spanned an extended period and another that required swift action.
Then, we’ll outline a reasonable timeframe. Watch the video below!
Understanding the Process
When dealing with national outsourcing contracts for outsourcing, warehousing, and transport, the timeline can vary significantly. It begins with documenting what needs to be outsourced, selecting suppliers, briefing them thoroughly, and distributing essential documentation. Suppliers must have sufficient time to absorb information, devise solutions, estimate resources, and determine costs—a step often underestimated.
Following this, the process involves evaluating bids, selecting suppliers, communicating results, negotiating contracts, and finally, implementing them. So, what is the typical duration of this entire process?
Long & Short Timeframes
Long Timeframe
In one case, a government organization aimed to be well-prepared for market entry. Planning commenced 18 months in advance, with substantial internal work to define outsourcing requirements and necessary services. The tender was issued six months before implementation, allowing suppliers three months to prepare proposals due to the project’s complexity. Including evaluation and contract finalization, the entire process spanned 18 months—a timeframe that highlighted meticulous planning and execution.
Short Timeframe
Conversely, a company faced an urgent challenge with its warehousing and distribution contract. Deteriorating relations with their 3PL provider led to a demand to vacate the warehouse within six weeks. This urgency placed the company in a difficult position with a fully stocked warehouse. Despite the tight timeframe, with some preliminary documentation prepared, we swiftly identified alternative 3PL providers, briefed them promptly, and managed responses within two weeks. The compressed shortlisting and evaluation process ensured a seamless transition to a new warehouse facility, meeting critical deadlines.
If you’re navigating outsourcing challenges and seeking expert guidance, schedule a free consultation here: https://www.logisticsbureau.com/outsourcing-consultants/
For more insights and detailed examples, watch the full video above!
Related articles on this topic have appeared throughout our website, check them out:
- Struggling with Logistics Challenges? A 3PL Might be Your Salvation
- Insourcing or Outsourcing Logistics: Don’t Choose the Wrong Reasons
- The Power of Outsourcing for Supply Chain Improvement
- 6 Quick Tips for Successful Logistics Outsourcing
- 10 Common Pitfalls to Avoid in Logistics Outsourcing
Editor’s Note: The content of this post was originally published on Logistics Bureau’s website dated June 10 2024, under the title “3PL Logistics: How Quickly Can You Outsource Logistics?“
