Programme overview
Introduction:
Many shippers hand warehousing, freight and order fulfilment to a third-party logistics (3PL) provider on the strength of a rate card, then discover hidden accessorial charges, vague service definitions and no way to exit cleanly. The 3PL outsourcing decision needs a sourcing process of its own: a sound make-or-buy case, a volume data pack bidders can price, a tender that compares like with like and a contract whose SLAs are measured and governed. This Core Concept course trains managers to run that cycle end to end. Participants produce a 3PL Tender Pack and SLA Scorecard for a case distribution network.
Course Objectives:
- Build a make-or-buy case that compares in-house warehousing, freight and fulfilment against 2PL, 3PL and 4PL provider options
- Prepare a scope of services and volume data pack that lets bidders price storage, handling and delivery activities consistently
- Run an RFI and RFQ process with weighted technical and commercial criteria and normalise rival bids to a single cost baseline
- Select an open book, closed book, transactional or gain-share pricing model and draft the matching logistics services agreement schedules
- Define SLAs, KPIs, service credits, liability caps and insurance cover, and set up onboarding, governance reviews and exit arrangements
- Produce a 3PL Tender Pack and SLA Scorecard ready for sourcing board approval
Target Audience:
- Managers who decide which warehousing, freight and fulfilment activities stay in-house and which move to providers
- Procurement and category managers who source and award logistics service contracts
- Logistics managers who oversee day-to-day performance of contracted warehouse operators and carriers
- Supply chain managers accountable for service levels and logistics spend across outsourced sites
- E-commerce and channel operations managers who depend on fulfilment partners for order-to-doorstep delivery
- Contract and commercial managers who administer rate cards, invoices and change requests with logistics providers
Course Outline:
Day 1: Outsourcing Logistics: Drivers, Provider Types and the Make-or-Buy Case
- Logistics Outsourcing Drivers: Capital Release, Network Reach and Peak Flexibility
- Provider Typology: Asset-Based 2PL, 3PL, 4PL and Lead Logistics Provider
- 3PL Service Tiers: Standard Provider, Service Developer, Customer Adapter and Customer Developer
- Contract Logistics Versus E-Commerce Fulfilment and Shared-User Warehousing
- Make-or-Buy Cost Model for Warehousing, Freight and Fulfilment Activities
Day 2: Scoping, Data Packs and Tender Design
- Scope of Services Matrix: Inbound, Storage, Pick-Pack, Value-Added and Returns
- Bidder Data Pack: SKU Profile, Order Lines, Pallet Movements and Seasonality Curves
- RFI Questionnaire and Provider Prequalification Scoring
- RFQ Structure: Solution Design Brief, Rate Card Template and Incoterms Rules Split
- Tender Timeline, Clarification Log and Site Visit Protocol
Day 3: Bid Evaluation, Pricing Models and the Logistics Services Agreement
- Weighted Evaluation Matrix Using the Most Economically Advantageous Tender Method
- Bid Normalisation: Volume Scenarios, Accessorial Charges and Outlier Exclusion
- Pricing Models: Open Book Cost-Plus, Closed Book Unit Rates, Transactional and Gain-Share
- Logistics Services Agreement Schedules: Services, Rates, Indexation and Change Control
- Post-Tender Negotiation Plan and Award Recommendation Paper
Day 4: SLAs, Liability, Transition and Relationship Governance
- SLA Design: Order Accuracy, Dock-to-Stock Time, Dispatch Cut-Off and Stock Integrity
- Service Credits, Bonus-Malus Rules and KPI Measurement Definitions
- Liability Caps, Goods-in-Custody Insurance and Stock Loss Allowances
- Onboarding and Transition Plan: Stock Transfer, Systems Integration and Parallel Running
- Governance Cadence, Continuous Improvement Clauses, Dispute Escalation and Exit Re-Tender Triggers
Day 5: Case Work: 3PL Tender Pack and SLA Scorecard
- Case Distribution Network Briefing: Volumes, Channels and Current Provider Issues
- Case Build: Scope Matrix, Data Pack and RFQ Rate Card
- Case Build: Bid Evaluation Across Three Simulated Provider Responses
- Case Build: SLA Scorecard with Service Credit Mechanism
- Sourcing Board Presentation of the 3PL Tender Pack and Peer Challenge
Skills You Will Gain:
- Logistics Make-or-Buy Analysis
- Logistics Tender Design
- Bid Normalisation
- Logistics Pricing Model Selection
- Service Level Definition
- Provider Transition Planning
- Logistics Contract Governance
- Provider Exit Planning
Why Attend This Course:
- Leave with a 3PL Tender Pack and SLA Scorecard built on a case distribution network, ready to adapt to your next logistics tender
- Stop hidden accessorial charges and unpriced volume swings by giving bidders one data pack and one rate card
- Hold a warehouse operator or carrier to account with measurable service definitions, credits and review meetings
- Compare outsourcing experience with managers from retail, manufacturing, healthcare and e-commerce supply chains
Conclusion:
Outsourced logistics works when the service is scoped, priced and measured before the contract is signed and governed after it. The course moves from outsourcing drivers, provider types and the make-or-buy case, through scoping, data packs and tender design, to bid evaluation, pricing models and the logistics services agreement, and then to SLAs, liability, transition, governance and exit. The final day applies these methods to a case distribution network and produces a 3PL Tender Pack and SLA Scorecard ready for a sourcing board.