We receive many Request for Proposals (RFP) from major Fortune 500 companies every year. Some RFPs are simple pallet-in and pallet-out opportunities with only 4 to 5 line items, while others are more complex, requiring bulk pallet storage, case picking, fulfillment, and value-added services.
In this comprehensive guide, we’ll walk you through the key components of a 3PL RFP template tailored specifically for warehousing services.
Why a Detailed 3PL RFP is Essential
When you're looking for warehousing services, a detailed RFP ensures you get the most accurate and cost-effective proposals from potential logistics partners. It streamlines the selection process, organizes information, and ultimately saves you time and money.
According to Gartner, reductions in operational costs of companies that implement a detailed RFP process for their 3PL selection see a 15-20% reduction in operational costs.
Key Components of an Effective 3PL Warehouse RFP Template
There are 2 major components of the an RFP - the (Request for Information) RFI that comes first and then the (Request for Quote) RFQ. Sometimes they can come out simultaneously depending on a shipper's needs. The RFI asks more qualitative questions while the RFP asks questions directly related to price.
Questions for a Request for Information (RFI)
This is sent out as a word document, giving contextual background of the project, and an excel file detailing specific questions to be answered and help better determine a fit. Usually, questions are given a scoring range, criteria to provide a given score, and a weight before being sent out.
About the Project
- Introduction and Company Overview: Provide a brief overview of your company, including your industry, size, and the nature of your business.
- Services Required: Clearly outline the warehousing services you need. This might include storage, inventory management, order fulfillment, cross-docking, and value-added services like packaging and labeling.
- SKU Count: The higher the SKU count equates to a lesser ability to maximize warehouse space, which creates an additional cost.
- Pallets per truck: This will help calculate the price for pallet movement.
- Average cases per full and partial pallet: This is helpful to determine case pick pricing
- Pallet dimensions: Is it a standard grocery pallet (48" x 40") or something else?
- Type of goods: Is your product hazardous, food grade, or some other form of regulation that might require special handling and storage guidelines.
- Project Background: Explain why you are seeking warehousing services. Are you expanding, looking to improve efficiency, or seeking a more cost-effective solution?
- Key Performance Indicators (KPIs): Define the KPIs that will be used to measure the performance of the 3PL provider. This might include order accuracy, inventory accuracy, on-time delivery, and customer satisfaction rates. This will surely improve the warehousing services.
- Term of Contract: This is important and can help amortize some of the set up costs over the term of the contract.
The 3PL's background
- Years in business: Years in business is a good indicator of continued success.
- Current customers: Often, current customers with similar work will be a good indicator of potential success.
- Warehouse Specifications: Detail the specifications of the warehouse facilities you require and the warehousing services. This includes the size, location, temperature control, security measures, and any certifications needed.
- Regulatory Compliance: Ensure the RFP requests information on the 3PL’s compliance with industry regulations and standards, such as ISO certifications, OSHA compliance, any industry-specific regulations, and warehousing services. As an example, Buske holds several of these key certifications, including AIB, BRC, and ISO 9001, to name a few.
- Sustainability Practices: Given the increasing importance of sustainability, inquire about the provider's green logistics practices and their commitment to reducing carbon footprints.
- Number of employees: This typically indicates a level of scale where redundancy is in place to meet your needs.
- Organizational structure: Key people leading the company.
- Types of goods handles: Do they specialize in one area or cover multiple industries.
- Number of warehouses: Unless this is a new warehouse operation, you will want to know the options to store your product. We typically will not go out and find a new warehouse unless there's another product to fit 40,000 SQF of space.
Technology
- Technology Integration: Specific any technology requirements, such as Warehouse Management Systems (WMS), and other software integrations such as EDI. Why is that important for context? Firms that specify technology needs in their RFPs see a 35% higher success rate in system integrations, based on a report by Deloitte.
- Sustainability: What sustainability practices do they have in place to meet your sustainability goals?
Questions for a Request for Quote (RFQ)
The key questions and information to provide in your RFQ starting off with bulk shipments down to small parcel shipments should be as follows. You will want to provide a representative sample of 1 month's worth of shipments or a full year if possible.
Bulk Pallet Movement Fees:
- Storage - Initial Charge per Pallet: The fee to bring a pallet in the warehouse.
- Storage - Recurring Pallet Charge: The fee to store a pallet at the warehouse each month.
- Handling - In per Pallet: The cost to pull a pallet from a truck and put into storage.
- Handling - Out per Pallet: The cost to pull a pallet from storage and place it into a truck.
- Labeling Fee per Label: If it's shipping to retail, what's the labeling fee to apply the appropriate labels?
Case Pick Fees
- Case Pick Fee: What's the price to pick a case from a pallet and prepare a mixed or partial pallet.
- Labeling Fee: What's the price to label a case in preparation for retail or the end customer.
Retail Consolidation Fees
- Consolidated Shipments Fee per Pallet: This is typically when a retailer requires consolidation when shipping to them.
E-Commerce Fees
- Order Picking Fee: Total fee to pick a DTC order.
- Shipping Fee: What's the transportation cost or is it cost + % mark up?
Accessorial Fees
- Pallets: Fee for an extra pallet. You'll want to indicate the grade of pallet.
- Slipsheets: Fee for a slipsheet.
- Labor: Special project hourly charge.
- Airbags: Airbags to secure loads for any special retailer.
- Blankets: If you have a temperature sensitive product during the colder months, you will want a fee for that.
- Stretch Wrapping: Fee to secure a pallet.
Other
- Management: Some shippers like to have a fixed management fee as a separate line item.
- Start-up Fee: A fee to start the agreement.
Evaluation and Selection Criteria of Warehousing RFP
When receiving completed RFPs, you will want a model to quantify the RFI responses and identify savings from the RFQ portion of the RFP. By using a representative sample of data from historical shipping months, you can come up with a suitable partner that can service your business and identify savings.
Experience You Can Trust: Buske Logistics’ Real-World Warehousing Expertise
At Buske Logistics, we leverage over 100 years of industry experience to navigate the complexities of finding the right warehousing partner.
Our deep understanding of logistics allows us to cater to the unique needs of diverse industries such as Automotive and Food and Beverage to name a few, earning the trust of leading companies Ford and CocaCola for our reliability, scalability, and cutting-edge technology.
Unlike many generic RFP templates, our approach at Buske Logistics includes a focus on real-world applicability and the latest industry trends. For instance, integrating AI-driven analytics into warehousing can boost efficiency by up to 30%—a solution we actively implement to keep our clients ahead in a competitive market.
Frequently Asked Questions (FAQs)
- What should be included in a warehousing RFP for warehousing services? An RFP for warehousing services should include an introduction, scope of work, technical requirements, performance metrics, compliance needs, pricing structure, and evaluation criteria.
- Why is a warehousing RFP important for selecting a 3PL provider? An RFP is important because it helps standardize the information received from various providers, making it easier to compare and evaluate their offerings based on your specific needs.
- How can I ensure compliance with industry regulations through a warehousing RFP? Ensure compliance by clearly specifying regulatory requirements and certifications in the RFP and requesting detailed information on the provider's compliance history and practices.
The Bottom Line: Streamline Your 3PL Selection
Crafting a detailed RFP is the first step toward optimizing your logistics operations. By clearly defining your requirements and expectations, you ensure proposals that align with your business goals.
At Buske Logistics, we are here to support you every step of the way. Contact us today or call us at +1 (618) 931-6091 to learn more about how our tailored solutions can meet your warehousing needs.
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