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.
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Suggestion: If a revised data set (similar to the tables on pg. 25 of RFP) is to be presented, Google is an option. Google offers free spreadsheets similar to Microsoft Excel that can be shared on-line. All that is needed is the creation of a Google account.
link to Google docs
We have modeled future costs against a series of adjustments that reflect FUTURE business in many underlying sub-detail that drive logistics volumes and costs. These figures, presented in the RFP tables in section 3.6, are what the bidders have been asked to quote against.
We have stated it as such in the text of the RFP. The quote is not designed to be a backward reflection of our business as was, but rather a forward reflection of the business to be.
The historical data provided in our Appendix is for actual orders and therefore does not have the growth/shrink factor built in. Be advised that the historical data drove the order profile however the transaction totals do not tick and tie to the tables below due to growth and other factors.
The product master of old is obsolete. The number of eaches per MP is not necessarily a driver for help. To be sure, we have done the analysis of each pick from historical order files to understand the correlation by SKU as to the assignment of full case versus less than full case picks .
The repetition of this work for RFP quote purposes will offer no value add as it is already done and will change dramatically by the time any transition is actually planned for the partner selected.
For the purposes of responding to this RFP quote, please assume that all products are stored in two, not one of two, but two ways: master pack whole cases on pallets with the average per pallet stated in the RFP assumptions (40 masterpacks or cases per pallet) AND in less than masterpack quantities (could be eaches or inner packs) using shelving, carousels or any other solution the 3PL desires.
We have stated how many unit loads are in storage as well as how many SKUs. The outward storage and handling characteristics across our product range are very similar.
Our product range is very standard in physicial distribution terms and variance that would not challenge standard storage solutions. The values asked for in the above question are provided for in section 3.6
Please accept our assumptions page in the RFP (page 27) and understand that the RFP is a selection process whereas the contract agreement will take into full consideration for any variance in our profiles and future looks as the business represents at that time.
We do not want to dictate the storage solution nor the pick logic to our bid pool.
However, we advise you to NOT be prejudiced by the video we sent as it does not represent the drivers or requisites for processing our business or a best solution design.
We have found that pallet rack and a high efficiency less than masterpack or case selection solution would likely serve the business well and preserve flexibility. Our present operating environment is less than flexible. The DC design for our Charleston facility was based upon assumptions that the reality of our business dynamics have rendered long obsolete. Therefore, while the engineering for automation, storage and high efficiency sorters appear attractive, their necessity and utility have attrited over time and resulted in a gross underutilization of their design potential. They have also imposed a fixed process with highly dynamic order profiles that constrain flexibility and inflate cost.
The pick logic is essentially to understand that a highly percentage of orders will have BOTH full case or masterpack unit picks as well as a share of less than masterpack unit picks which will have to be consolidated to the same order at some time for labeling and outbound processing to a customer order.
Pallet stack height: A single MasterPack carton measures 6 to 12 inches high. Pallet height is at the discretion of the 3PL however AINA averages 40 MPs per pallet
The video is yesterday's overengineered solution that was designed for a static moment in time. That moment passed, the volumes and customer requirements changed and yet the highly engineered solution could not.
As such, AINA has suffered operationally and had to design countless work-arounds and suffer suboptimal efficiency in some areas to compensate. Utililization of the elegant solution has been low and thus the ROA has been correspondingly low. Do not become enamoured with engineered automation that overly constrains what is a simple business in the logistics sense. Imagine the bid without the video.
Ability to change manpower to flex from a change in the processing outbound carton difference between full case and split-case ( repack), Dock loading change between palletized vs floor loading of outbound shipment. Direct trailer loading vs staged shipment pallet loading, Value added services with MSRP changes, kiting, price ticketing, etc.
The term "flexibility" is used to caution against over-engineered, capital intensive, highly automated solutions that can't adapt to changes in the business over time. The retail segment of merchandising in North America has experienced radical change in the past 15 years and we don't expect the rate of change to slow anytime soon.
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