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.
Wednesday, May 2, 2007
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2 comments:
Tom, in response to your questions
1. We expect in your bid any degree of potential capital you would require to spend in your response to the RFQ.
2. The 40,000 pallet positions are for the current model in the RFQ.
3. The 11,000 skus are for the current model in the RFQ.
4. All RFP bidders should be informing us what the total configuration should be based on the data in the RFQ. Do not base any quotes on the data in the video, as the information is outdated and not part of the RFQ. Use data from the RFQ document.
5. Expect normal exit cost associated with potential early termination with unpaid capital as part of the exit fee.
6. Video is outdated, use the future model of 2,300 orders per day in the RFQ.
Tom, in response to question 1 and 5:
1. The decision to outsource our distribution function is based upon:
a. Optimizing our strategic location for distribution purposes.
b.Optimizing our distribution and warehousing cost.
5. Any potential contract will include a clause that states in the event the parties do NOT renew or extend the agreement to continue operations that AINA will make a settlement payment to cover any remaining costs that the years to date (be they 3, 5, 7, etc.) have not already paid for. It is a make-up clause. We will assume that our strategic partnership will indeed extend beyond the initial three year period that we contract for.
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