It has been a couple of weeks since my last blog and a lot has happened in those weeks! I have discussed several times the positon logistics has in the hierarchy of projects, more specifically, procurement. I do appreciate that logistics is a function under the procurement function but I have issues when people do not put thought of time into them and push them to the back of their to-do list.
For the last couple of weeks, I have been working on a project, which I have been trying to get onto for almost eight months. However, I was repeatedly rebuffed that they would not require logistics, as they would simply put out a tender and logistics companies would quote on it. Now, at the eleventh hour, I have been asked to help make sense of the tender documents and assist in writing a service agreement. I do really enjoy the project and team, and it is a good team, all with good knowledge in their field. However, when I read the logistics tender request, I cringed – but not nearly as much as when I saw the responses from the companies. I cannot blame the logistic companies as they have been given so little to work. Similarly, I cannot blame the project team as they do not know logistics.
My point?
In projects, you get an expert to help on their area of interest. Yet, in logistics, they do not use this approach and the project will suffer because of this. The fact is, many unscrupulous freight forwarders know this and will, therefore, present cheap prices alongside a range of assumptions. They will use this to increase costs during a project, to maximise their profit – giving all logistics a bad reputation. Additionally, the old-school Logisticians will provide an honest quote but not necessarily input the modern HSEQ requirements and eliminate themselves because of this.
Whose fault is this?
Its everyone’s and no one’s, it’s simply a failure to communicate.
I have spent three years trying to bridge this gap but have struggled to make each side understand the necessity to communicate honestly in the early stages of the project. It’s simple, from the project-side, have someone with logistics knowledge to write the scope and tender, clearly outlining what you require and what scope you have.
Next time, we shall discuss what exactly a logistics tender document should encompass. For now, let’s look forward to some comments!
My point?
In projects, you get an expert to help on their area of interest. Yet, in logistics, they do not use this approach and the project will suffer because of this. The fact is, many unscrupulous freight forwarders know this and will, therefore, present cheap prices alongside a range of assumptions. They will use this to increase costs during a project, to maximise their profit – giving all logistics a bad reputation. Additionally, the old-school Logisticians will provide an honest quote but not necessarily input the modern HSEQ requirements and eliminate themselves because of this.
Whose fault is this?
Its everyone’s and no one’s, it’s simply a failure to communicate.
I have spent three years trying to bridge this gap but have struggled to make each side understand the necessity to communicate honestly in the early stages of the project. It’s simple, from the project-side, have someone with logistics knowledge to write the scope and tender, clearly outlining what you require and what scope you have.
Next time, we shall discuss what exactly a logistics tender document should encompass. For now, let’s look forward to some comments!