With an unwavering commitment to service excellence, Expak inked a logistics contract with a retail pharmacy chain, only to unexpectedly lose the contract to a lower-cost provider in a scheduled review. Expak’s dedication to professionalism and reliability ultimately led to the client returning and renewing their contract for three years, proving that genuine partnership and service quality can triumph over short-term cost savings.
The Challenge
Winning the competitive last-mile logistics services request for proposal (“RFP”) of a large regional grocery chain’s in-house pharmacy operations, by pitching (and effectively executing) a proposal built to elevate existing pharmacy logistics services via cloud-based technology, improved supply chain visibility, and a relentless commitment to client service, at a competitive market price.
Pain Points
Today, real-time visibility into the retail supply chain is foundational. If your competitors have it and you don’t, you’re at a significant disadvantage.
Without current Transport Management System (TMS) integration, a business often finds itself in a “he said/she said” situation regarding the location and the associated troubleshooting of goods on the move. Not a position you want to be in for retail pharma distribution.
Any 3PL partnership needs to address this issue in a way that recognizes other factors, from cost to vendor accountability.
The Approach
Relationship building. Because good relationships build trust.
Expak came a close second in a previous RFP. The review process was an opportunity to understand the perspectives of the people seeking solutions.
The next time the account went into review, Expak was ready to build on its initial learnings.
We delivered a proposal showcasing our company culture of problem-solving and high-touch customer service, with a focus on integrating the client into our TMS to enable a two-way exchange of information to provide real-time freight visibility and ensure a viable chain of custody of our client’s freight.
The Result
Expak won the business.
Why? The ability to provide the client with technology that enabled crystal clear real-time visibility into their supply chain. We were confident in our ability to meet their Service Level Agreements (SLAs), including pharmacy-critical chain of command and the assurance that all locations would receive delivery by one pm, complete with the automation and visibility to track that promise with certainty.
We believe in the client paying for the service they receive, not just the promises in a proposal.
With a focus on continuous improvement, and the experience needed to understand the nuances of retail logistics, we elevated logistics services and associated reliability for this retail pharmacy chain.
An Unexpected Twist
After a fruitful two-year partnership, we entered a scheduled vendor review as the incumbent.
During the routine, scheduled RFP renewal process 2 years later, Expak surprisingly lost the business.
Why? Another vendor’s significant cost-saving promises could not be ignored in such a budget-conscious industry.
We were surprised and disappointed to lose out to a third party, with predicted cost savings being the deciding factor. Customer service is a commitment you make for every day you’re under contract, and one we keep. However disappointed, we ensured a smooth transition during the weeks ahead to our client’s new provider.
Delivering On Our Promises
Two months later, our client invited Expak back.
Why?
The vendor they opted to work with offered lower levels of service and failed to deliver on their promises, including their critical SLA of daily delivery by 1 pm.
Appreciating the professionalism, value, and ability to keep promises that Expak delivered from the very first pitch, we were brought back into service at these 120 pharmacies, and our contract was concurrently renewed for three years, rather than the standard two.
Key Takeaways
Competitive pricing will always be table stakes when evaluating 3PL vendor options. However, customer service levels are the foundation for good vendor/client relationships. Artificially low-ball pricing can look attractive, but the vendor may struggle to meet expectations, creating problems and costing more in the long run.
A culture of professionalism before, during (and after) a service contract is executed is key. If a commitment to doing the right thing is your Northstar, it guides you through both victories and setbacks. In the end, consistent service quality and genuine partnership create lasting value that transcends short-term cost savings.
