Tendering Transport - Lessons Learnt 2

Tender complex transport with failing important information

A chain of logistic companies operated its own fleet for transporting products to and from hospitals. Ultimately the operations grew so big that costs where unbearable. Management concluded tendering all transport for the lowest price was the answer.

Taking over all personal and current equipment was one of the main conditions of the tender.

The tender process got stuck because a lot important inrformation was failing and had to be submitted during the process. Especially unloading time and specific unloading rooms in hospitals remained unclear as processes where not documented. Besides that a lot of current truck drivers where transferred from production locations to the transport department. They had used the transport department as dumping place where people with small limitations found their last station.

The management didn’t succeed in outsourcing the transport and hired an interim manager to clean things up. He later developed a co-maker ship with 2 nearby transport companies to outsource a part of the trips.

Lesson Learnt:

If you’re transport is full of risks and uncertainties it will be difficult to outsource it 100%. Unless you are prepared to pay a high price.