Logistics

Logistics is the part of supply chain that plans and controls the flow of goods and services to meet customers’ requirements. Companies have resorted to the use of Transport Management System (TMS) with driver management and route optimization to on-time delivery targets and delivery efficiencies.

 

TMS is expected to drive route efficiencies based on historical data and configurable operational parameters. The increasing customer demand and requirements have forced the logistics industry to plan and execute more creatively to improve lead times, reduce shipping rates and step up operating efficiency and overall service level.

1. Distribution Network Optimization

 

An effective distribution network adapts to the business growth and adjusts its throughout dynamically to stay flexible to support business volume changes. This needs to be achieved with increasingly shorter planning lead times.

 

The main goal of a distribution network is to provide the necessary service level to the customer and this could be a 95% on-time delivery or a 12-hr turnaround time at a transit hub, and the customer need such service level to be delivered consistently week-in week-out.

1. Distribution Network Optimization

 

An effective distribution network adapts to the business growth and adjusts its throughout dynamically to stay flexible to support business volume changes. This needs to be achieved with increasingly shorter planning lead times.

 

The main goal of a distribution network is to provide the necessary service level to the customer and this could be a 95% on-time delivery or a 12-hr turnaround time at a transit hub, and the customer need such service level to be delivered consistently week-in week-out.

2. Logistics Hub Set-up

 

There are many moving parts in setting up a logistics hub or fulfilment centre. To secure a successful launch with minimal rework and avoid incurring unbudgeted costs, it takes more than just professional project management. The ability to anticipate issues, the technical know-how and an end-to-end mindset are as critical in determining whether a launch will eventually be successful.

 

What are the common mis-steps and risks in setting up a Logistics Hub?

 

– Misalignment of goals and targets between departments, particularly between Sales and Operations is one of the most common factor why a launch could fail.

– Incomplete User Acceptance Testing of use cases for the operating systems could result in unpreparedness for a technical glitch previously not encountered.

– Failure to conduct a thorough dry run prior to launch failing to uncover process and system gaps prior to launch.

– Insufficient and inappropriate training for ground staff leading to unfamiliarity in SOP execution.

– Failure to act and close out critical tasks prior to launch.

 

How do we support you in setting up a Logistics Hub?

 

We provide consulting service with 4 key focus areas:

– Understand your business operating model and provide tools to design the most optimal site layout and operational flow.

– Guide and work with your vendors for implementation.

– Develop and implement operating systems for end-to-end Hub operations

– Provide a Launch Playbook with execution cadence to ensure all necessary preparation activities are covered for launch.

3. Transport Operational Improvement

 

The use of an effective Transport Management System (TMS) with driver management and route optimization is fundamental to securing high delivery efficiencies and meeting on-time delivery targets. A value-adding TMS should be designed with the capability to drive route efficiencies based on historical data and configurable operational parameters.

4. 3PL Tender and Contract Review

 

What are the key considerations in a 3PL Tender and Contract Review?

 

1. Requirements Gathering

The requirements for the 3PL to perform the task is generally captured in the document Request For Quotation (RFQ). The RFQ document forms the basis for communicating all requirements to potential 3PL providers pertaining to the project. The RFQ aims to be comprehensive and precise to avoid any misunderstanding in work scope or requirements at later stages.

 

2. Selection of Vendor

To come to the decision of selecting the vendor objectively aligned with the business goals, it is crucial to agree amongst the key decision makers on a list of vendor selection criteria. The selection criteria should be used as the basis for reviewing the 3PL proposals.

 

3. Price Charging model

The price charging model needs to serve the needs of the operating model. Most of the clients will go with the conventional close-book rates table catered for most of the clients only to realize later that the pricing model is far from being costeffective as the business volumes grow.

 

4. Implementation Plan

A key part of the 3PL response to the RFQ is the implementation plan. A lack of focus on scrutinizing and ensuring the implementation plan is fully aligned with business and operational requirements is a common factor leading to a poor startup with a new 3PL provider or high likelihood of a disruptive transition.

 

What is our approach to support you in a 3PL Tender?

 

– Work with you on a model to establish and justify the sourcing strategy

– in house versus outsource

– Shortlist potential vendors for outsource

– Manage the Request For Inquiry (RFI) process to request for detailed bid and collect initial requirements

– Manage the Request For Quotation (RFQ) process including advice on scoping and responding to vendors.

– Support you on the vendor evaluation and selection process

– Support you on the implementation process to ensure the committed deliverables are met by the appointed 3PL.

 

What is our approach to support you in a 3PL Contract Review?

 

The key considerations when it comes to a 3PL contract review or renewal are cost and performance benchmarking, and the potential disruption to existing operations.

 

We work with you to formulate strategies to execute the benchmarking exercise professionally and objectively without risking the lost of trust with the existing 3PL and in the case of switching to a new 3PL provider, we will support you to achieve the goal of achieving a successful service transition.