LFA Open Tender 3PL

 The Organisation and implementation of independent logistics tenders
To make a company competitive it is often important to organise an effective and regularly updated  selection system for logistics services providers. LFA experts take responsibility for the preparation of tender documents, the invitation to tender, the collection and analysis of offers from tender participants and short-list the best tenders for the client.  As with HR procedures, the choice of logistics service providers can be conducted anonymously. Throughout the tender process, a customer’s sectoral and regional characteristics are taken into consideration and  LFA specialists analyse the correlation of a provider’s price and quality. Presentation of a tender contains detailed information concerning the proposals received and the methodology for decisions on candidates.

 Principles of LFA Open Tender 3PL
LFA Open Tender 3PL – is a system for the effective and regularly competitive selection of logistics services providers;  it has been elaborated and adapted specifically for the Russian and CIS markets. The basis  of the LFA Open Tender 3PL are those principles fundamental to conducting open tenders:

• Consideration and fairness to all parties
• Independence, objectivity and equal conditions to all participants
• Clear and professional formulation of the tender terms
• Confidentiality
• Transparency of the evaluation process

Peculiarities of LFA Open Tender 3PL

• Control of authenticity of information submitted by tender participants
• Active involvement of regional providers
• Complete involvement, from putting down tender terms and requirements to formation and execution of agreements

 Tendering process
Traditionally LFA Open Tender 3PL process is divided into four main stages:

• Preparation of tender
• Conducting of tender
• Analysis of tender applications
• Formation and execution of agreements

The tender preparation is conducted in cooperation with representatives from all the client’s departments, related to the project. For example, when preparing a tender to nominate a freight forwarder for the distribution of finished goods, it is important to coordinate activities with the finance and sales departments in `order` to determine their requirements of a potential provider.  Besides the clear determination of all requirements and parameters of a project, the LFA experts propose the best form of tender procedure (eg. open competition, limited competition, qualified competition)

The central element in preparing a tender is the formulation of an invitation to tender, that contains the requirements, terms, technical specifications, criteria for invitation and scheduling of the tender.  To develop a tender invitation, a company must have in-depth knowledge of the logistics services market, potential competitors and possible contractual relationships. For example, it has been known for companies to introduce overly-demanding requirements, that no potential provider can meet, resulting in a waste of resources for the organisation and management of a tender.  LFA specialists can guarantee positive results from their tenders, due to a profound knowledge of the logistics services market and of preparation of professional tender documents.

The preparatory stage of the competitive procedure is a period when LFA specialists decide upon the means of notification of a tender: from publication of advertisments in specialised journals (both printed and electronic) to direct mailing and qualified selection. The process of distribution is accompanied by consultation and explanatory meetings, conducted by LFA experts. In some cases it may be necessary to make changes to the tender documents at this stage. LFA specialists pay close attention to any agreed corrections. LFA’s reputation guarantees confidentiality when working with tender participants.

During the analysis of tender applications stage, LFA experts evaluate a participant’s offer in compliance with the pre-determined evaluation criteria; in addition, the information given by the participant is verified. LFA experts hand over the analysis and evaluation data to the client for agreement on tender results.  Notification to tender participants of the tender results may be either openly or privately provided. LFA keeps all rejected offers on record in case of possible problems arising during the final stage of a tender.

During the final stage of a tender, LFA experts coordinate the process of contractual drafting between a client and a provider of logistics services, as well as monitoring the initial period of works under the contract. If any problems arise concerning the ability of a provider to fulfil his responsibilities under contract, LFA will review all rejected offers from the original tender process for a replacement.

 LFA Open Tender 3PL advantages
In today’s Russia the cost and quality of logistics services varies greatly. For example, the disparity in prices for freight forwarding services is more than 60%. LFA creates a project team of independent and professional experts, ensuring the client to receives the right services for the best price and quality.

• effectiveness
• optimal choice
• economy of resources