Four typical mistakes in logistics tenders
The preparation of the tender documents, the selection of suitable providers and the evaluation of the different offers are associated with considerable effort.
It is not uncommon for the entire process to drag on for several weeks or even months. Expectations are correspondingly high, after all, costs are to be reduced, service quality is to be improved and logistics need to be future proofed.
Nevertheless, practice shows a similar pattern. Despite the great effort, the expected goals are not achieved. Savings are lower than calculated, processes are not noticeably more efficient and some challenges still exist, even though a new logistics service provider may be on board.
But why do the results often fall short of expectations? A look at typical tender projects shows that certain mistakes are often repeated.
Mistake No. 1: The focus is on the service provider
Many companies start a tender with the question: “Which logistics service provider is the best?” However, the decisive factor is not which provider enjoys the best reputation on the market or offers the most extensive service portfolio. It much more depends on whether the logistics solution offered meets the individual requirements of the company and also fits the strategic orientation in the long term.
The company must focus on its own requirements. Processes, quantity structures and goals are specified and must be fulfilled by the service provider, not the other way around. This ensures comparability and everyone has the same starting point for calculations and service provision. This is recorded in a requirement specification and is thus clearly documented and comprehensible.
Mistake No. 2: The data basis is insufficient
Logistics service providers can only calculate services, resources and costs based on the information provided to them. If quantity structures are incomplete, master data is incorrect or important information is not sufficiently documented, different assumptions arise about the actual scope of services. If the offers are not based on uniform calculation principles, they can be compared only to a limited extent.
Typical examples are:
- Incomplete or outdated quantity structures
- Lack of information on seasonal fluctuations
- Insufficient transparency in order structures
- Poor master data quality
- Ambiguous requirements for service levels and delivery times
More reliable base data allows the providers to calculate and develop suitable and reliable solutions. A clean data basis is therefore an essential prerequisite for a successful logistics tender.
Mistake No. 3: Price becomes the primary factor
The cheapest provider is not necessarily the most economical choice. The best fit is the solution that offers the greatest benefit for the company in the long term and best meets the defined requirements. If the offers are evaluated predominantly on price, there is a risk of ignoring important factors.
These include, for instance:
- Service quality and delivery performance
- Flexibility in the event of volume fluctuations
- Transparency of service provision
- Response times in case of problems
- Quality of reporting
- Industry knowledge and experience
Especially in long-term logistics partnerships, purely price-oriented decisions can lead to higher costs later. Many weaknesses only become apparent during ongoing operations and cause additional coordination effort, delays or quality issues.
Mistake 4: Future requirements are not considered
If potential future developments are not considered in the logistics tender, a currently suitable logistics solution can reach its limits after just a few years.
Such requirements are, for example:
- Business growth
- New product groups
- Internationalization and new markets
- Changing customer requirements
- Omnichannel or e-commerce strategies
- Digitization and automation projects
A logistics solution therefore needs to meet not only the requirements at the time but must offer sufficient scope for future developments.
Conclusion
Many errors in logistics tenders occur long before offers are compared and a service provider is selected. Those who clearly define requirements, base data and goals at an early stage create the basis for better decisions.
Professional logistics tenders are part of our daily business.
Selected Projects: Brauerei Hirt, Nespresso, Baumarkt Fetter, Bründl Sports etc.
We will be happy to support you from the preparations to the tender and the provider evaluation. Please feel free to contact us without obligation.
"Using special tools, an As-is analysis was created in a very short time, and precise tender documents for potential logistics partners were developed. Due to the very professional support and the collaboration in a spirit of partnership, the new logistics concept was implemented quickly and to our complete satisfaction.”
