Companies in all industries, from time to time, find themselves in the need to bid for product or services. This can happen for a variety of reasons such as, their current contracts are about to expire or the business is expanding into new geographies. EU-based companies which have their operations to the UK affected due to new regulations imposed after Brexit, prefer to tender for a new warehouse in this nation instead of doing the operation themselves.
That said, you may have reasons or be tempted to handle tender projects internally. Confidentiality, total control over the process and knowledge retention are the main reasons, in addition to the fact that the recent increase in global prices has pushed smaller and more vulnerable companies to seek to cut costs as much as possible.
Listed below are ten reasons that briefly explain why external support can be more beneficial than handling the tender project internally.
1) Expertise
Leverage valuable insights, advice and guidance throughout the tendering process. They are familiar with best practices, industry standards, local regulations, and any potential challenges that you may not be aware of. In their experience, they can manage projects of any size or complexity, ranging from single consignments procured on a spot basis to large-scale logistics contracts.
2) Access to a wide range of suppliers
You can benefit from an extensive network of contacts with 3PLs and service providers in all served industries. This is an invaluable asset when it comes to identifying potential vendors, obtaining quotes, and negotiating contracts with them. Within this network are also included ‘local heroes’, companies that may have a strong position in a particular region or country; these companies can be highly competitive and agile, and yet remain unknown to most of buyer companies. As mentioned at the beginning, a company based in the EU, looking for a warehouse in the UK is a good example of an organisation that can benefit from a ‘local hero’, that would have remained in the dark without the external input. A skilled external tender expert will also be able to match your specific requirements to the most adequate set of suppliers.
3) Increased efficiency
Coordination of the tendering process, minimising your involvement and effort, particularly if you lack expertise in a specific type of tender (e.g., for warehousing or WMS, which are not tendered very often). In this way, you can focus your own resources and team on regular day-to-day activities, which will not stop because of a tender, while the external professional handles the process from start to finish. By leveraging their expertise, external input can assist you preparing a clear and concise tender package, identifying suitable suppliers, and managing the bidding process in a timely and efficient manner. The purpose is to keep your effort dedicated to the project as minimum as possible.
4) Objective evaluation
Your project stakeholders would receive an objective and fair assessment of all proposals, taking into account factors such as price, quality, experience, and reliability. This helps you making well-informed decisions and selecting the most suitable vendor. By engaging with a professional firm, your project is conducted in a transparent and equitable manner, through clearly defined evaluation criteria, consistent communication with vendors and unbiased recommendations.
5) Reduced risk
Logistics and supply chain tendering projects can be risky, particularly if you are not familiar with the industry, as it usually involves mid- and long-term costly decisions, which are not always easy to revert. By conducting an exhaustive analysis on all proposals, potential risks are mitigated, ensuring that all contracts are properly negotiated and structured, providing ongoing support throughout the project. This can help ensure that the project is completed on time and within budget. As mentioned before, since the external support is neutral and has no personal gain from a specific recommendation, they will always provide insights in your best interest.
6) Improved project outcomes
Taking advantage of their expertise and industry knowledge, a professional firm can ensure that the tender project is successful. They can help you to identify potential risks and challenges, develop contingency plans, and ensure that the project is completed with the best possible results and within the budget.
7) Access to technical knowledge and technology
Firms specialising in logistics and supply chain, have access to technology and software that can help improve the tendering process, for example, for network, inventory and/or route optimisation. In addition, this can include tools for vendor evaluation, bid management, scenarios building, and contract negotiation, etc. Leveraging these tools guarantees efficiency and accuracy of the results.
8) Streamline communication
Take advantage of improved communication between you and the suppliers, in addition to clear communication channels and standardised protocols, ensuring that all parties involved are on the same page throughout the process. Also, for you, information exchange would be easier as you would only have one point of contact, the external support.
9) Continuous improvement
Receive support to establish a culture of continuous improvement within the logistics operation. They can provide ongoing support and guidance to assist you optimising the supply chain, reducing costs, and improving efficiencies over time.
10) Cost effective
Lastly, although it may seem counterintuitive, hiring third-party professional services can actually be a cost-effective option in the long run. The firm can help you identifying potential cost saving opportunities, negotiate with vendors on your behalf, and ensure that you get the best possible value for money.
Conclusion
In summary, companies looking to outsource logistics activities, such as transportation, warehousing, WMS software or MHE assets, among others, are likely to have internal knowledge and experience in logistics, but most probably they will not have the same level of expertise and resources as a professional firm that specialises in the matter.
You can receive guidance throughout the tender process, from drafting the tender documents to evaluating the bids and, depending on the project’s scope, selecting the winning vendor or making final recommendations. They can also leverage its network of suppliers and vendors to ensure that you receive the best possible proposals.
In addition to expertise, outsourcing the tender to a third party, can also be cost-effective in the long run. While there are some initial fees associated to hiring a consultancy company, the benefits of their streamlined tendering processes can result in cost savings for your organisation. Furthermore, it can also free up your internal resources to focus on other key business areas.
Moreover, as your business grows and logistics need change, external professional support in your tender project can help you to scale up (or down) operations to meet fluctuations in demand. The specialised firm can also keep your company up-to-date with the latest technologies and best practices, helping your business to remain competitive in the industry.
In conclusion, the benefits of relying in the external expertise of a consultancy to run a logistics tender project as opposed to running it in-house are clear. The external partner can offer you specialised expertise, cost-effectiveness, scalability, and access to the latest technology and knowledge. By partnering with a specialised professional firm, you can streamline the tendering process, achieve better outcomes, and ultimately, improve your bottom line.
Further Information
For some time now, the "Project Management Office" (PMO) has established itself in Supply Chain Engineering alongside the classic project management approaches.
Read more about this topic in the Miebach Whitepaper by Ole Grasedyck "No way around PMO".

The need to establish such complex supply chains with central and regional warehouses has been reinforced by several trends in recent times. But which article should be placed in which warehouse? A holistic approach to article allocation helps here - and can unlock enormous cost optimization potential.
Read more about this topic in the Miebach Whitepaper by Christian Lütkemeyer and Ole Grasedyck: "Where to put the stocks?"

Study 31 January 2023, Written by Thomas Krebs und Anastasiia Omelchuk, Miebach Consulting in collaboration with GS1 Germany
The German Supply Chain Due Diligence Act, which became effective on January 1, 2023, is currently stirring up controversy. Supporters see the regulation primarily as a necessary instrument to motivate companies to act more sustainably and...
