How to Prepare a Business Continuity Management Program?
The previous articles have mentioned about the need for a business continuity management program and the components of a typical business continuity plan. This article looks at how to prepare your organization for emergencies and the steps that are needed to be taken to prepare for contingencies. For starters, the business continuity program that your […]
Training & Development and HRIS Applications
HRIS is a systematic process of compiling different information for easily accessing them further. HRIS helps in training and development issues within a business. It facilitates performance evaluation of an employee understanding proper training methods, utilizing the knowledge imparted to employees in an accessible manner. Training and Development – Strategic Implications and Learning Organization The […]
Primary Metric(s) – Meaning and its Characteristics
In order to truly control a process, one must understand the inputs as well as outputs of the process. These inputs and outputs are displayed through numbers which are called “metrics”. The primary metric is a way to say with numbers how well your process is performing. Here are a few pointers that will help […]
How Loose Monetary Policies by Central Banks Create Asset Bubbles and Lead to Inflation
Loose or Tight Monetary Policies ? The debate over whether central banks around the world must pursue loose monetary policies or tight monetary policies has become sharp in the aftermath of the global financial crisis. Loose monetary policy refers to the practice of central banks keeping interest rates low, stimulating the economy as banks would […]
Government Spending vs. Government Taxation
The state of the American economy is deteriorating at a rapid pace. This is large because of the indiscriminate spending being undertaken by the American government. In order to understand the true scale of this spending, let’s have a look at some numbers. In 1987, the entire budget controlled by the United States government amounted […]
Outsourcing of core Logistics function of Warehousing is fast becoming popular not only for Multi National Companies with global operations but all organizations in medium and small sector too.
Outsourcing may fall into two categories. One category would be the flow through warehouses, merging and distribution centers that are but a consolidation points in the supply chain network. These can be managing finished goods or raw material supplies or even spare parts etc. The project size is relatively smaller and the warehouse is not expected to hold inventories beyond a few days.
The Second category of warehouses could be the larger distribution centers managing finished goods inventory and related operations in large scale, catering to exports or supplies to a region, continent or country level or inbound raw material warehouses managing JIT or VMI operations, in plant management, Plant FG operations, etc. These warehouse operations are critical in nature and are primarily categorized by the volume & value of inventory held, size of operations and its relative position and important in the supply chain network.
In the first case of a flow through consolidation center, the selection of a 3PL vendor is relatively simpler and the criteria lesser. In the second case the SCM managers of the Buyer and the procurement have to set up a project to float the RFP, invite bidders, evaluate the bidders, negotiate and award the contract.
RFQ should contain complete details of the said project to enable the 3PL to propose a solution and prepare a solution design document. The RFQ should contain at least the following details as minimum information:
RFQ document is normally prepared by the business function manager along with project lead and procurement leaders.
Once document is prepared and internal processes and approval are in place, the procurement issues the RFQ to either all vendors in the market or shortlisted vendors.
Post RFQ, the buyer invites all participants for Question and Answer session either in a face to face meeting or on mail. Normally all answers to the received questions are posted to all vendors participating to ensure fair chance for everyone.
The vendors can be allowed to meet and discuss the scope in detail or visit the proposed site to collect more details.
Buyer facilitates clarifications and discussions with all relevant internal business functional groups whenever required by the vendors to be able to give them better insight into the requirement.
On due date of the RFQ, vendors are required to submit detailed bid response document.
Short listing of vendors happens internally with participation from related functional teams and project leaders. Response documents are studied, graded and tabulated based on an evaluation of solution design, capability as well as pricing. Shortlisted vendors are given opportunity to present solution to the buyer’s team on selected dates.
Final selection happens after the vendor is selected internally and procurement further negotiates with the selected vendor and comes to agreeable terms and conditions.
Lastly, internal management approval is obtained from concerned, selected vendor is announced, and LOI is released to the selected vendor.
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