3PL Vendor Selection

Sliding Line

  • The client, a well-known American luxury fashion brand, aimed to improve its logistics operations amid rising labour and energy costs, limited investment, and an expiring incumbent contract. The company was considering either transitioning to a new European third-party logistics (3PL) provider or renegotiating with the current vendor to address its list of pain points. 

    Exevion was engaged to manage a competitive vendor selection process, which included renegotiating with the existing provider and evaluating potential new vendors based on the revised proposal from the incumbent. This was the first of three phases in the broader transformation project. 

    The project’s objective was to identify a vendor that would not only deliver financial benefits but also align with the client’s sustainability goals and support a long-term partnership. To ensure the client was well-prepared for a potential vendor transition, Exevion also developed detailed preparation and transition plans with shortlisted vendors, guaranteeing a smooth transition and setting the foundation for future phases of work. 

  • Exevion facilitated a competitive vendor selection process, across the following workstreams: 

    • Vendor Engagement: Issued a detailed RFP to potential vendors and collected their proposals, which were scored and validated through a series of workshops, involving the vendor and client teams 

    • Financial Modelling: Developed a cost-based financial model to calculate the net present value (NPV) of each vendor’s proposed costs over a five-year period, enabling a clear financial comparison of options 

    • Risk Assessment: Conducted a thorough risk assessment of each vendor, identifying potential challenges and developing mitigation strategies for each scenario 

    • Site Visits: Facilitated site visits to shortlisted vendors, allowing the client to assess operational capabilities and verify proposed solutions in real-world settings 

    • Transition Planning: Collaborated with shortlisted vendors to develop detailed preparation and transition plans, ensuring readiness for a smooth implementation if a change in vendor was selected 

    • Successful Vendor Selection: Led the vendor selection process, resulting in the identification of a 3PL provider that aligned with the client’s commercial, strategic, and operational objectives 

    • Cost Savings: Developed a financial model that identified up to $10.7M reduction in logistics costs over a five-year period, driving significant savings for the client 

    • Streamlined Evaluation: Facilitated workshops and site visits that supported client stakeholders to evaluate vendors through an accelerated decision-making process effectively 

  • Exevion’s strategic approach to vendor selection helped a well-known American luxury fashion brand optimise its logistics operations while addressing rising costs and an expiring contract. By managing a comprehensive, competitive vendor selection process, Exevion not only identified a third-party logistics (3PL) provider that aligned with the client’s commercial, strategic, and sustainability goals but also delivered significant financial benefits. Through tailored financial modelling, risk assessments, and facilitating site visits, Exevion ensured the client made a well-informed decision that resulted in up to $10.7M in savings over five years. 

    By choosing Exevion, clients benefit from a structured and competitive vendor selection process that aligns business requirements with long-term goals, optimises costs, and ensures smooth transitions between current and new vendors for lasting operational efficiency.