Logistics: compare quotes and prices

Define the operations first

Map the goods’ journey from supplier to recipient. Separate transport, receiving, storage, order picking, packing, dispatch and returns. This shows which tasks will be outsourced and which will remain in-house.

Transport alone, a managed warehouse and complete order processing need different costing. Define the handovers between tasks too: who reports damage, quarantines goods or authorises a returned item for resale?

Build a realistic volume profile

State the goods, handling units and monthly movements. Average inventory and monthly shipment volume are different measures. A pallet stored for three months creates different work from a location whose contents change daily.

Include seasonal peaks, promotions and unusual packages. Estimates are acceptable initially; have normal operations and peak demand priced separately before a binding contract. For a new business, an honest estimate is more useful than invented precision.

Temperature-sensitive goods, dangerous goods, batch records and expiry dates need early attention. Suitability depends on the actual site, procedures and transport. A broad quality claim does not replace checking the specific goods.

Compare costs on an equivalent basis

One price per pallet or shipment rarely captures the full service. Use the same assumptions for a normal month, a peak month and initial setup. A complete quote cannot be compared directly with a rate that omits several operations.

Check whether minimum fees are offset against usage or added to it. Fuel, energy and other adjustments need a clear basis. Without volumes, goods and agreed scope, a general Swiss monthly price would be unreliable.

Make service performance measurable

Agree targets for order acceptance, dispatch readiness, inventory reconciliation and exceptions. A defined cutoff and processing time is clearer than ‘fast’. Ready for dispatch and actually delivered are different events.

Define the measurement too: which orders count, how stockouts are handled and who reports late inbound deliveries. Establish contacts, escalation and regular reporting. Liability, insurance and the valuation of damaged goods need separate consideration.

Integration, launch and eventual exit

Check how product records, orders, inventory and statuses move between your systems and the provider. An existing connection does not automatically cover exceptions, returns or multiple locations. Exchange confidential credentials through a suitable channel, not in the enquiry.

Also agree how goods and data will be handed back at contract end, with clear notice periods and transition charges.

1. Prepare the data. Clean up product codes, dimensions, weights and stock records; assign responsibility for changes.
2. Test the workflow. Run sample orders including cancellation, partial delivery and returns.
3. Start with checks. Reconcile opening inventory, name contacts and agree a fallback for interruptions.