As we approach the end of summer of 2024, I was reflecting on a busy summer for SCALA across our Best Practice Forums.
One discussion in particular stood out at the 3PL forum in July.
Maddy Jones of Associated British Foods delivered an eye-opening talk on the art of securing spots on tender lists – a topic that struck a chord with many in the room, me included.
Inspired by her insights and blending them with my own experiences in the industry, I’ve realised that in the competitive supply chain world, landing on these coveted lists can genuinely be the difference between exponential growth and stagnation for third-party logistics (3PL) providers. Price is always important and critical in a demand and supply driven environment. But there’s also more.
It’s not just about being good at what you do anymore; it’s about mastering the nuanced art of positioning your 3PL business to be challenging to ignore. This article, born from the fusion of Maddy’s wisdom and my industry observations, offers some strategies I’ve seen work to help your 3PL rise above the noise and significantly boost your chances of being invited to tender and becoming the preferred choice.
Maximising your chances of being invited to tender
1. Craft a compelling value proposition
The cornerstone of any successful tender application is a razor-sharp value proposition that nails your story and critically answers the questions ‘why you?’ and ‘why now?’. Your potential clients need to grasp, within seconds, what makes your 3PL uniquely qualified to meet their needs. Consider the following when articulating your value proposition:
- Specificity is key – Instead of saying, “We offer innovative logistics solutions,” try “Our AI-driven route optimisation has reduced delivery times by 30% for e-commerce clients.”
- Quantify your impact – Use concrete metrics to demonstrate your effectiveness. For example, “We’ve helped our pharmaceutical clients achieve 99.9% on-time delivery rates, reducing product spoilage by 15%.”
- Address pain points – Show that you understand the specific challenges in your client’s industry and how your solutions directly address them.
2. Master the art of the executive summary
Time is the most precious commodity of all. This insight, brilliantly articulated by Maddy Jones of Associated British Foods at the recent SCALA 3PL Best Practice Forum, really hit home and is perhaps obvious?
As busy professionals, we’re all fighting the clock; nowhere is this more apparent than in the tender process. Maddy’s sage advice? Brevity is not just preferred—it’s crucial. With inboxes overflowing and attention spans shrinking, your ability to concisely communicate your 3PL’s value proposition can make or break your chances of landing on a coveted tender list.
With this in mind, here are some simple tips to communicate with brevity while still emphasising your critical value proposition. Remember, tenders are a marathon, not a sprint!
- Keep it brief – Aim for no more than 10 pages that pack a punch.
- Structure matters – Use clear headings, bullet points, and infographics to make the information easily digestible.
- Tell a story – Weave your key strengths into a narrative that resonates with the potential client’s needs and aspirations.
- Call to action – End with a clear next step, inviting further engagement.
3. Cultivate a robust industry network
The supply chain industry is one of the most relationship-driven industries I’ve come across; your network is most definitely your net worth. Building and nurturing strong industry relationships is crucial for getting on the right radar. Consider these strategies:
- Become a thought leader – Regularly contribute insightful content to industry publications and forums.
- Leverage LinkedIn – Share valuable content, engage with industry discussions, and connect with decision-makers.
- Attend and speak at events – Position yourself as an expert by presenting at conferences and trade shows.
- Join industry associations – Active participation in relevant associations can open doors to exclusive tender opportunities. An not just for the logistics industry – join the associations of your target customers.
Differentiating Your 3PL Business
1. Elevate customer service to an art form
Like no other, the supply chain industry is where reliability is paramount; exceptional customer service can be your secret weapon. Here’s how to showcase your commitment to service excellence:
- Implement a customer feedback loop – Regularly collect and act on client feedback, demonstrating your commitment to continuous improvement.
- Offer 24/7 support – In a global supply chain, issues don’t stick to office hours. Show your readiness to solve problems around the clock.
- Personalise your approach – Tailor your services to each client’s unique needs, proving that you’re not just another vendor, but a true partner in their success.
2. Showcase industry-specific expertise
Specialisation can set you apart in a crowded market. If your 3PL has deep expertise in particular sectors, make this the cornerstone of your pitch:
- Develop Industry-Specific Case Studies: Create detailed case studies that demonstrate your understanding of sector-specific challenges and how you’ve overcome them.
- Highlight specialised equipment or processes: If you’ve invested in industry-specific technology or processes, make sure potential clients know about it.
- Speak the language: Use industry-specific terminology to demonstrate your insider knowledge and build credibility.
3. Lead the charge in sustainability and innovation
Sustainability and environmental credentials aren’t just nice to have—they’re a necessity. Simultaneously, innovation is the lifeblood of progress in the supply chain industry. Here’s how to position your 3PL at the forefront:
Sustainability:
- Set clear goals – Publicise your sustainability targets and your progress towards them.
- Invest in green technology – Showcase your use of electric vehicles, solar-powered warehouses, or AI-optimised routes that reduce carbon emissions.
- Partner with eco-friendly suppliers – Demonstrate your commitment to sustainability throughout your supply chain.
Innovation:
- Embrace cutting-edge tech – Highlight your use of blockchain for transparency, IoT for real-time tracking, or AI for predictive analytics.
- Develop proprietary solutions – If you’ve created unique software or processes, make these a key part of your pitch.
- Foster a culture of innovation: Share how you encourage and implement new ideas from your team, showing that innovation is in your DNA.
Practical tips for submitting winning tenders
1. Craft an irresistible executive summary
Your executive summary should be a standalone masterpiece that leaves the reader eager to learn more. Here’s how to make it shine:
- Start with a bang – Open with your most impressive statistic or achievement.
- Focus on outcomes – Emphasise the results you’ve delivered for similar clients.
- Tailor to the client – Show that you understand their specific needs and how you’re uniquely positioned to meet them.
2. Showcase tangible success stories
Decision-makers crave proof of your capabilities. Use case studies to bring your successes to life:
- Before and after – Clearly illustrate the improvements you’ve made for clients.
- Use visual aids – Graphs and charts can make your achievements more impactful.
- Include client testimonials – Let your satisfied customers speak for you.
3. Keep your submission lean and focused
In the initial stages, quality trumps quantity. Aim for a concise, powerful submission:
- Stick to no more than 10 pages: Force yourself to prioritise your most compelling points.
- Use a clear structure – Make it easy for readers to find key information quickly.
- Proofread meticulously – A polished submission reflects your attention to detail.
4. Follow Up with Finesse
A well-timed, professional follow-up can set you apart:
- Timing is everything – Wait about a week before following up.
- Add value – Use this opportunity to provide additional relevant information or insights.
- Be Persistent, not pushy – Express your continued interest and availability for further discussions.
Beyond the hype: Final reflections
Getting on tender lists requires a strategic approach that blends clear communication, relationship-building, and differentiation.
By focusing on your unique strengths, presenting them compellingly, and leveraging strong industry relationships, your 3PL can significantly boost its chances of being invited to tender.
Remember, the key is not just to be good but to be memorable. Your goal is to make decision-makers think, “We can’t afford not to have this 3PL on our tender list.”