You have reached that stage, the project is now looking at moving into execution, and you have managed to persuade the project manager to do the right thing and control the flow of cargo to site, to avoid unnecessary nasties in the logistics process, what next?
First you need to have a clear understanding of the logistics, too many people rush to put together a tender document for the logistics without actually having a real logistics plan. What you really need now is to develop a workable set of logistics strategies. Strategies? I hear you say, but yes, one of the most common errors is to simply draw up a tender and assume the logistics service providers will do the rest. This is wrong. When your engineers put out for a specific item, they have already designed and have basic specs and ideas what they want, so what is different here with this service? A logistics company will simply give you want you have asked for, not considering other aspects, risks or penalties, so it is important that you give them the parameters you want as well as ensure that they too at least are instructed to consider aspects such as a strategy to mitigate container storage and demurrage costs, as well as either asking them to define a transport envelop, or what out of gauge is defined as.
I encourage all at this stage to engage either a specialist logistics consultant or close freight forwarding company to work with you to define the strategy as well as capabilities and potential routings. This may go further to establish the in country capabilities for transport in the country where the project is taking place. This may include number of heavy trucks available, not just the maximum masses transport and lift able.
These will all become part of the logistics tender document later, but for now we are simply trying to establish the logistics scope and capabilities along the logistics chain and in country.
Use subject matter experts (SME’s) on the logistics side, ones who know the industry well, as well as who have experience and knowledge of the country in which the project is being undertaken. Establish what the origin and in country customs requirements and limitations are, are there possible duty waivers? Is there are requirement for a pre-inspection before shipment? What are the major container and breakbulk lines servicing the region and country, and how frequently are the vessels? What limitations are there on cargo?
All of this should then be put into a simple, single document and agreed with the project team in the form of a strategy for handling the project transport and logistics as a whole. This should include strategies on delivery, storage (there will ALWAYS be some, this will be discussed in detail soon), as well as a container strategy defining if liner containers will be used, if containers will be purchased or leased, and who will manage these.
Once we have these, we can then start to convert this into a logistics tender document. Next weeks article will expand on how we convert this strategy into logistics tender document and what aspects are crucial to ensure the tenderers understand where they are going and respond in details you want.
I encourage all at this stage to engage either a specialist logistics consultant or close freight forwarding company to work with you to define the strategy as well as capabilities and potential routings. This may go further to establish the in country capabilities for transport in the country where the project is taking place. This may include number of heavy trucks available, not just the maximum masses transport and lift able.
These will all become part of the logistics tender document later, but for now we are simply trying to establish the logistics scope and capabilities along the logistics chain and in country.
Use subject matter experts (SME’s) on the logistics side, ones who know the industry well, as well as who have experience and knowledge of the country in which the project is being undertaken. Establish what the origin and in country customs requirements and limitations are, are there possible duty waivers? Is there are requirement for a pre-inspection before shipment? What are the major container and breakbulk lines servicing the region and country, and how frequently are the vessels? What limitations are there on cargo?
All of this should then be put into a simple, single document and agreed with the project team in the form of a strategy for handling the project transport and logistics as a whole. This should include strategies on delivery, storage (there will ALWAYS be some, this will be discussed in detail soon), as well as a container strategy defining if liner containers will be used, if containers will be purchased or leased, and who will manage these.
Once we have these, we can then start to convert this into a logistics tender document. Next weeks article will expand on how we convert this strategy into logistics tender document and what aspects are crucial to ensure the tenderers understand where they are going and respond in details you want.
