Paul Trudgian Ltd | Supply Chain & Logistics Consultancy No Comments

Paul Trudgian Ltd has been engaged by a world-leading bicycle manufacturer and brand to help them source, through a competitive tender, a logistics provider to meet their UK warehousing requirements on a 3-year closed-book contract, commencing in early 2019. This is a pre-tender notification for logistics providers to register their interest in receiving the full Invitation to Tender (ITT) which will be issued on Monday 30th July 2018.

The client is a well-known brand who design, manufacture and distribute high-quality bikes from their own manufacturing sites in the Far East and Continental Europe. Globally, they supply more than 6 million bicycles through 12,000 retail outlets and, combined with sales of cycling accessories, generate annual revenues of $1.8 billion.

Within their UK operations, the company are seeking a long-term 3rd party logistics partner to receive, pick, pack and despatch both bicycles and accessories to their 400 UK and Ireland retail partners. The bicycles and accessories can be treated as discrete warehouse operations and providers will be invited to quote for either, or both operations. A summary of the operations is provided below.

Bikes

The logistics provider will be required to receive, pick and despatch approximately 90,000 bikes per annum against 970 separate SKUs. All bikes will be received in retail ready boxes across 4 box size configurations ranging from 1300mm x 200mm x 750mm up to 1850mm x 280mm x 1200mm. In summary, the service requirements are as follows:

  • Bonded facility;
  • Unload and put away containers of bikes from Far East (non-palletised);
  • Unload and put away trailers of bikes from Europe (non-palletised);
  • Store bikes upright and off the floor in a clean environment;
  • Scan bikes, in and out of warehouse, by SKU and frame number;
  • Pick orders on day 1 ready for despatch on day 1 (cut-off time to be agreed);
  • Receive, process and notify of returns from retailers.

Accessories

The logistics provider will be required to receive, pick, pack and despatch approximately 350,000 items per annum against 1,400 SKUs. All outbound orders will need to be packed into standardised boxes with air-fill. In summary, the service requirements are as follows:

  • Bonded facility;
  • Unload and put away containers of accessories from Far East (non-palletised);
  • Pick orders on day 1 ready for despatch on day 1 (cut-off time to be agreed);
  • Scan accessories, in and out of warehouse, by item number;
  • Receive, process and notify of returns from retailers.

For both the bikes and accessories, it is expected for the provider to have technically driven operations, with cloud based reporting. Furthermore, the provider should be able to integrate their systems with the client’s order management system as well as the carriers despatch systems (it should be noted that outbound transport to retailers for both bikes and accessories will remain with the incumbent and is not in scope).

Next Steps

If you are interested in tendering for this opportunity, please provide your company and contact details to [email protected] with the reference:

PT031 – 3PL Warehouse Contract (Bicycles & Accessories)

Once we have your details we will contact you with a Non-Disclosure Agreement and may request further details to confirm ability. We will then confirm the provider list with the client before issuing the ITT on Monday 30th July with a 5-week response time.

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