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Smartwares

Development of a strategy to outsource the warehousing activities of a wholesaler

Development of a strategy to outsource the warehousing activities of a wholesaler

What they asked

Our client is a wholesaler with multiple operating companies, spread over several locations in the Netherlands. In over 10 years, the company has undergone a major expansion through acquisitions. They supply over 30 product categories to a variety of customers. The client wanted to outsource all warehousing functions of all operating companies to a third-party logistics provider (3PL). Significant liabilities in assets, rental agreements and personnel complicated the outsourcing process.

What we did

We developed the outsourcing business case based on the current and forecasted operational capacity requirements, for each logistic flow and activity. We wrote the Request for Proposal (RFP) documents and managed the RFP process between the client and logistics service providers. Based on a detailed bid analysis, we advised the client on the preferred 3PL and on consolidation of some of the warehouses. We also advised them on the structure of the contract fee. In addition, we facilitated the discussions between the client and the 3PL to come to a mutually acceptable solution for liabilities and cost reductions.

What we accomplished

We have prepared the outsourcing of warehouse activities, including a transfer of liabilities to the selected 3PL. In addition, we identified several cost reduction opportunities in their operation.

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