Insurance

In the Cost Template, page # 6. Telecomm & Insurance, ARC asked for Ins. Premium. What insurance premiums are you requesting; Building, General Liability, or Warehouseman’s Legal Liability?

Updated Responses

Good morning all BLOG participants.

All questions listed on the blog have been answered.

Thank you for your patience

Rob Phillips

One shipment or multiple shipments

In analyzing the Wholesale table in the Access database, we noticed that a customer can have multiple duplicate orders on the same day. For example, the table shows 30 unique records (30 unique "Sales doc") for same customer (Customer = 128104, Name = The Bay (TDC-0596) ) for the same SKU (SW221-001) for the same quantity (2) on the same day (Created on = 18-Mar-06).

Is this batch of orders physically picked and shipped as 30 different orders, or are they picked as 30 unique orders and then consolidated into 1 shipment prior to sending to The Bay? Is each order a store order that The Bay crossdocks at their DC?

SKU's and Racks

Although the masterpack data file indicates over 65,000 SKU’s, how many SKU’s do you actually expect in each location?

Approximately what % of the inventory is required to be stored in pallet racks?

Site Visits

The RFP mentions the site visits to occur between May 14 & June 1. Are the site visits going to be delayed or will they be scheduled for next week?

If the site visits are delayed, will the response submission date be delayed as well or will it remain June 1?

Inbound SKU's

1) How many SKUs per container load on average?

2) Can Arc provide a week or two of actual receipts to examine?

Updating All Outstanding Questions

Good morning,
We understand at this time we have several outstanding questions left unanswered.
We are gathering our responses for everyone and will update within the next 24 to 48 hours.
We apologize for the delays.
With sincere thanks,

Data Questions and Product Master

There have been numerous questions concerning discrepancies between the various data fields on the disc and in the RFP. The responses have been difficult to align with the questions due to the nature of the blog format. Could ARC provide a revised data page that lists the data that they would like for the 3PL's to base their response on?

And, I have seen questions concerning inventory levels but I have not found a response. I have also not found a product master file in the data provided. Has a product master been provided? A single document that will break down: each individual SKU, product description, dimensions, master pack qty, # of master packs in inventory (average inventory), # of master packs per pallet, annual # of master packs shipped(or eaches shipped if pulled in less than master pack qty), # of eaches per master pack, mode of storage, and pallet stack height. There may be a variable that I missed. It will be impossible to design the storage component and understand the pick logic without this information.

In addition, can you provide the number of inbounds by month, including the # of cases. With this, it would be nice to know the # of outbound cases shipped by month. These two data points will help us understand seasonality.

Last, but not least, the RFP addresses the fact that one of ARC's primary goals is to have a "flexible" solution. Can you expand on your expectation for flexibility? The degree of capital illustrated in the video that you provided does not typically align with a flexible solution.

Thanks.

Questions regarding RFP Data

1) Please describe the seasonality of the orders

2) How much higher should we expect the peak numbers to be over the daily numbers given on page 27

3) Page 27 numbers do not correlate correctly. For example, wholesale lines (2354) divided by wholesale orders (1589) equals 1.48, but lines per order on the chart are 1.58. Are we interpreting the numbers incorrectly?

4) For Cardinal Business what percentage, if any, are FULL pallet picks?

5) May we see some actual bills of lading for each line of business?

6) Why are cases per order (EAST DC 42.5) (WEST DC 86.0) so very different between the DC's?

7) May we get a current inventory snapshot by SKU that includes cases per sku on the listing?

8) Analysis indicates on average you are storing 2.48 (EAST) / 1.03 (WEST) pallets per SKU. Is this accurate?

9) Do Retail, Wholesale and Food Service have different subsets of the 11,216 total skus that they deal with?

Environment, Health & Safety

With regard to:
“A site analysis by AINA hired engineer may be required. The 3PL's Environment, Health & Safety Office will be required to complete a safety requirement check-list. A site risk assessment by an AINA hired engineer will be performed prior to the initiation of operations with AINA. The assessment must show that the 3PL’s premises comply with AINA’s safety requirements. Should this not be the case, a satisfactory correction plan must be agreed upon prior to operations commencing.”
The Warehouse needs to know what AINA’s safety requirements are so we can determine if those requirements may affect us (financially & operationally).

Questions

1. We are attempting to replicate the data analysis that produced the numbers on pg. 25 of the RFP, using the files in Order Profiles.zip. Please describe, in detail, the steps that were used to arrive at orders (369,627) and lines (1,057,064) for the Eastern Region DC, using the files found in Order Profiles.zip.

2. In a previous post another party asked if the 317,443 number in the first table on pg. 25 represented picks or actual cartons. The response was "picks." Are we to assume "picks" = "eaches"? "Pick" is a vague term and can be interpreted multiple ways. Also, what is the total number of shipping cartons created from each picking (or what is the average eaches per shipping carton for less-than-full case picking)? We would like to know the total number of cases shipped which = total unbroken cases + total shipping cartons built from each picks.

3. Are historical inventory snapshots available from the current DCs? We would like to better understand inventory history by SKU in order to determine space needs and optimal storage configuration of the new DCs.

4. The RFP mentions (on pg. 46) for the 3PL to "manage and operate either your own Warehouse Management System or AINA’s SAP WM system in the DC". The article from Global Logistics and Supply Chain Strategies from 1998 indicates that the Charleston DC is (or was) operating under Manhattan Associates' WMS. Are the current DCs still operating under the Manhattan WMS and if so, can the 3PLs entertain the option of using the existing Manhattan system?

5. In a previous answer you mentioned that 54% of inbound volume arrives on corrugated liner slipsheets. Can this product be slipped off the inbounds with a push-pull attachment or must all inbound product be handstacked off the container/trailer, regardless if it's floorloaded or on a slipsheet?

Thank you.

IT and Locations

Delivery Header Data page 57-58; Are all of the following fields required, including pass thru info not required by the warehouse (WMS)?
CSC, Account type, salesperson#, pack slip location, one article indicator, Soft hold, Hold delivery, Price label ind, Day to ship, ind shipper ind, Mark for Name,
Pattern 3, comp, lead indicator, CSC, PKMS seq#,


May Norfolk, VA be considered for a potential Eastern Region DC?


May Salt Lake City, UT be considered for a potential Western Region DC?

Maersk Logistics acknowledgement

We would like to acknowledge receipt of your RFP and our intent to submit a response according to the indicated timelines. We are currently reviewing the document and will submit our questions shortly. Thanks again for considering the Maersk Logistics group of companies for your RFP.

Clarifying Site Visit Question

Regarding site visits: The RFP states that Arc will visit each of the 3PL companies to see one or more of their facilities. Can you provide the date in which you will visit our facility so we may begin scheduling the appropriate team members?

Volume Data CORRECTION

In section 3.6 Transaction and Volume Information it states: "Case and less than case picks are not additive to reach total cases, but do reflect pick actions." However, in the data; "Case Picks Per Annum" + " Less than Case Picks Per Annum” DO equal “Cases Processed”. Are LT Case Picks equivalent to cases or picks?


What is the month to month volume variation? Or is monthly volume = annual volume divided by 12?

Questions regarding Arc-International RFP

1. What is the actual start up Timeline?

2. When do buildings need to be operational?
a. Are the facilities to be started up simultaneously or staged start up consecutively?

3. What is the start up process?
a. What date will product need to be received at each facility?

b. What date will product start outbound shipping at each facility?

4. Can you provide the site visit date & time for us?

5. Will the racking and automation in Charleston be available to the 3PL for the new operation, if deemed appropriate as part of the solution?

6. Please clarify - Our understanding is that the transportation management requirement is primarily a scheduling and tracking function. Carrier selection will be driven by AINA internal and AINA customer routing guides. Is this correct?

Response to 3Pl Blog

1. Please use numbers on page 25 - there is an error on page 24.

2. Phase I is envisioned to include " Retail & Wholesale" volumes of business with Phase II to include the "Cardinal/Food Service" business volumes.

3. All carrier contract management for inbound freight and outbound freight to the AINA Retail stores ( Mikasa Stores) will be handled by AINA. ( we will look to partner with the 3PL provider in this area in due course) Execution of Transportation to support the Retail network is included in the scope. Wholesale and Food Service Channels are customer collect freight. All transportation service requirements are detail listed in pages 64 and 65.

4. No, warehouses do not have to be food grade

5. For non US origin inbound product ( majority of receipts) at least one month notice.

6. Standard operating temperatures for non food product . Cooled air flow ( conditioning) in Las Vegas facility deemed expected.

7. The product stored is not deemed Hazmat material yet facility must have MSDS sheets on file for materials used to operate equipment. HAZCOMM program must be present in the facility for education of the people who use and or are near where it is stored.

QUESTIONS TO ARC INTERNATIONAL RFP

1. Clarify pallets on hand: The total network number of pallets of 27,827, on page # 25, exactly matches 27,827 pallets continuous storage for Frederick. Is that an error or do I not understand something?

2. Clarify Implementation time line: What volumes distinguish Phase I from Phase II?

3. As I understand, this RFP does not include transportation. However some transportation functions, such as delivery status and PODs, are included. Can you clarify?

4. Are warehouses to be food grade? If so are they to be food grade compliant or certified?

5. How much advance notification will the 3PL receive for inbound merchandise?

6. Define ambient temperature range. Will Frederick area require heating and will the Las Vegas area require air conditioning?

7. Will there be any HAZMAT? If so what quantities by class?

Thank you for clarification re RFP data and video. We will build our response according to the RFP information. We would like clarification on term of contract. The RFP states a 3 year contract yet the RFP requests capital be amortized over 10 years and IT over 7 years. Normally the amortization period and term of contract are the same. Please explain.

Video for RFP

For all RFP Bidders for 3rd Party Logistics

Please note that the data in the RFQ is related to future volumes in the model.

The video in your possesion is for viewing of the physical depication of the structure in Charleston.

The data in the video is outdated; hence refer to the data in the RFQ to perform your quote .

Please refer to the document within your possession.

Questions about RFP Data & Charleston video

We have a number of concerns and questions concerning the RFP. We would appreciate your response to the following:
1. Viewing the Charleston DC video is it your expectation for a 3PL provider to duplicate same automation (capital), set up for a proposed DC?
2. Video states 108,000 pallet positions yet the RFP data indicates 40,000 pallet positions for all three current locations.
3. The data indicates 11,000 total SKu's yet in the video for Charleston alone it states 24,000 unique bin locations?
4. If 40,000 pallet positions is correct, we figure total 2 DC requirements of around 500,000 square feet yet the Charleston DC alone is a 535,000 square footprint with two 115,000 square feet mezanines and it is 76 foot high ceilings.
5. RFP states amortize capital over 10 years and IT over 7 years yet on page 10 under #8 it states a "contract term of 3 years which AINA can terminate early upon reasonable and agreed notice."
6. Charleston video we believe states process 4,000 orders a day yet the data indicates for all three locations about 2,300 order a day.