Best Practices for Conducing and Evaluating a TMS RFP Chris Norek, Ph.D., Senior Partner, Chain Connectors, Inc.

Copyright: Chris Norek, Ph.D Conducting a TMS RFP “Best of Breed” SC Software Offerings Procurement/Purchasing Forecasting and Inventory Management Warehouse Management Systems (WMS) Transportation Management Systems (TMS) Strategic Distribution Network Design

Copyright: Chris Norek, Ph.D Possible TMS Functionality Routing and Scheduling Load Optimization Carrier and Rate Management Shipment Tracking Global Trade Management Audit and Payment Fleet Management Bidding* Transportation Cost Modeling/Optimization Conducting a TMS RFP

Copyright: Chris Norek, Ph.D Possible TMS Functionality Strategic network design and planning Freight sourcing and bid optimization Tactical planning Operational transportation planning and optimization Transportation execution and carrier communication/collaboration Trading partner (carrier, supplier and customer) network/community management 3D load design/building Freight rating and contract management Multicarrier parcel shipping Conducting a TMS RFP

Copyright: Chris Norek, Ph.D Possible TMS Functionality Rail and intermodal shipping planning and execution Multileg/multimodal international planning and execution Asset- or fleet-based routing, scheduling and dispatching Freight audit, payment and settlement Visibility and event management/business activity monitoring Analytics, performance management, scorecards and management dashboards Globalization for international deployment (language, currency, local rules and geographic data) Technology architecture, adaptability, flexibility, usability and deployment options Conducting a TMS RFP

Copyright: Chris Norek, Ph.D TMS Offerings ERP Oracle SAP Best of Breed (alphabetical order) 3GTMS Descartes IBM/Sterling Commerce inet Logistics Four Kites JDA (Red Prairie) Lean Logistics Logility Manhattan Associates Mercury Gate RateLinx TMW Transplace Conducting a TMS RFP

Copyright: Chris Norek, Ph.D Pricing Options Perpetual License One time fee plus yearly maintenance (18-20%) Software as a Service (SaaS) Flexible pricing based on usage Conducting a TMS RFP

Copyright: Chris Norek, Ph.D Conducting a TMS RFP Know transportation specifics – Modal spend – Modal performance – Carrier spend – Carrier performance – Geographic nuances Regional cost rationale Route cost rationale

Copyright: Chris Norek, Ph.D Conducting a TMS RFP Steps in an RFI/RFP Process 1)Determine project objectives and expectations, functionality requirements, hosting and cost options desired and identify selection team and assign roles and responsibilities 2)Check overall capability and qualification of approximately 6 – 8 vendors (Might use and RFI) 3)Create and distribute a Request For Proposal (RFP) to three vendors and schedule presentations 4)Rate each vendor’s application to system requirements definition, expectations and objectives 5)Identify capable software providers and schedule/manage one to three product demonstrations either in person or remote

Copyright: Chris Norek, Ph.D Conducting a TMS RFP Steps in an RFI/RFP Process (continued) 6)Review suggested software providers to prioritize provider offerings and rate against agreed-upon selection criteria 7)Check either finalist references or successful vendor’s references (can be done anytime once identified) -Could visit vendor headquarters if necessary 8) Select desired provider, review software contract, and negotiate with the vendor of choice to finalize contract Includes enhancements, customization or other services required

Copyright: Chris Norek, Ph.D Conducting a TMS RFP Hints for a Successful RFP Process Make sure that you have a selection team consisting of both IT and operations people If you aren’t very familiar with TMS and functionality available, you might benefit from both an RFI and and RFP – Extra information on from the RFI but might be concepts you already know Don’t have software providers give demonstrations (demos) before you’ve created your requirements list During a demo, make sure you “drive” the keyboard and click on various parts of the screens and try to enter data

Copyright: Chris Norek, Ph.D Conducting a TMS RFP Hints for a Successful RFP Process Developing the functional requirements and determining the importance of each for your company is the most critical step in the process and might require outside help Be careful scheduling the on-site demonstrations so that the competitors aren’t seeing each other (they probably recognize one another) Be realistic about timeframes for providers to respond to RFP – Provide them the ability to ask questions after the RFP is sent to them Separate the software selection process from the implementation provider selection (at least at first)

Copyright: Chris Norek, Ph.D Talking Transportation to the “C” Level Feel free to contact me with any future questions: Chris Norek, Ph.D. (770) (Office) (678) (Cell)