REQUEST FOR PROPOSAL
Third-Party Logistics Services
Warehousing and Distribution
Primary Contact
Name: Sarah Chen
Title: Director of Supply Chain
Email: schen@midwesthomegoods.com
Phone: (312) 555-8420
1. Company Background
Midwest Home Goods, Inc. is a growing home furnishings retailer headquartered in Chicago, Illinois. Founded in 2008, we operate 47 retail stores across Illinois, Indiana, Michigan, Ohio, and Wisconsin. Our product lines include furniture, decor, bedding, and seasonal items.
We are experiencing significant growth and project a 25% increase in volume over the next 18 months. Our current 3PL contract expires May 31, 2025, and we are evaluating partners who can support our expansion plans.
Annual revenue: $180 million
SKU count: Approximately 4,200 active SKUs
Peak season: October through December (holiday)
2. Scope of Services
2.1 Warehousing Requirements
We require warehousing services in the Chicago metropolitan area to serve our Midwest retail network.
Space Requirements:
- Approximately 50,000 - 65,000 square feet
- Prefer single facility, will consider multi-building campus
- Climate controlled (protection from temperature extremes, not refrigerated)
- Minimum 24-foot clear height
- Adequate dock doors for peak volume (estimate 8-10 doors minimum)
Storage Types:
- Bulk pallet storage (70% of volume)
- Racked selective storage (25% of volume)
- Small parts / carton pick area (5% of volume)
Inventory Profile:
- Average inventory: 8,500 pallets
- Peak inventory (Oct-Dec): 14,000 pallets
- Mix of floor-loaded containers and palletized freight inbound
2.2 Inbound Operations
Receiving Volume:
- Average: 15,000 units per week (approximately 180 pallets)
- Peak: 40,000 units per week (approximately 450 pallets)
Inbound Sources:
- 60% import containers (40' HC) from Long Beach/Los Angeles
- 30% domestic LTL from various suppliers
- 10% parcel (small vendor shipments)
Requirements:
- Container unloading and devanning
- Piece-level receiving and inspection
- Barcode scanning and system entry
- Quality inspection sampling (approximately 5% of receipts)
- Put-away within 24 hours of receipt
2.3 Outbound Operations
Shipping Volume:
- Average: 12,000 units per week to retail stores
- Peak: 32,000 units per week
- Ship to 47 retail locations plus occasional direct-to-consumer
Order Profile:
- Store replenishment orders: 150-400 units per order
- Average 85 orders per week
- Peak: 200+ orders per week
Requirements:
- Pick, pack, and ship operations
- Carton labeling with store-specific labels
- Palletization for LTL shipment
- Loading and carrier coordination
- Ship Monday through Friday, occasional Saturday during peak
2.4 Value-Added Services
- Price ticketing and re-ticketing
- Light assembly (attaching legs to furniture, minor assembly)
- Kitting for promotional bundles
- Returns processing and inspection
- Photography services for e-commerce (nice to have, not required)
2.5 Transportation (Optional)
We manage transportation separately but would consider a bundled solution if competitive.
- Store delivery: LTL to 47 locations, 2-3 deliveries per week per store
- Appointment scheduling with retail locations
- Inside delivery capability for some locations
3. Technology Requirements
WMS Integration:
- EDI integration required (810, 850, 856, 940, 945)
- We use Oracle NetSuite
- Real-time inventory visibility via web portal
- API access preferred for custom reporting
Reporting:
- Daily inventory position report
- Weekly KPI dashboard (receiving accuracy, shipping accuracy, order cycle time)
- Monthly business review with trend analysis
System Cutoff:
- Orders received by 2:00 PM CST ship same day
4. Timeline
| Milestone | Date |
|---|
| RFP Issued | January 15, 2025 |
| Questions Due | January 25, 2025 |
| Answers Published | January 30, 2025 |
| Proposals Due | February 15, 2025 |
| Finalist Presentations | February 24-28, 2025 |
| Site Visits | March 3-7, 2025 |
| Selection Decision | March 15, 2025 |
| Contract Execution | April 1, 2025 |
| Transition Period | April 15 - May 31, 2025 |
| Go-Live | June 1, 2025 |
5. Evaluation Criteria
Proposals will be evaluated based on the following weighted criteria:
| Criteria | Weight |
|---|
| Cost / Pricing Structure | 35% |
| Facility and Location | 20% |
| Technology Capabilities | 20% |
| Experience and References | 15% |
| Implementation Plan | 10% |
6. Proposal Requirements
Please provide the following in your response:
- Company Overview
- Company history and ownership
- Financial stability (provide references or statements)
- Relevant industry experience
- Proposed Solution
- Facility location and specifications
- Staffing model and management structure
- Technology platform and integration approach
- Proposed process flows
- Pricing
- Storage rates (per pallet position per month)
- Handling rates (inbound per unit/pallet, outbound per unit/pallet)
- Value-added service rates
- Any minimum charges or accessorial fees
- Rate escalation terms
- Implementation Plan
- Transition timeline and milestones
- Resource requirements from Midwest Home Goods
- Risk mitigation approach
- References
- Three current customers of similar size and scope
- Preferably retail or consumer goods industry
7. Terms and Conditions
- Initial contract term: 3 years with two 1-year renewal options
- 90-day termination clause with cause
- Annual rate review with CPI adjustment cap
- Insurance requirements: $2M general liability, $1M auto, $1M cargo
8. Questions
Submit all questions via email to schen@midwesthomegoods.com by January 25, 2025. Reference "RFP MHG-2025-0892 Question" in the subject line.
This RFP does not commit Midwest Home Goods, Inc. to award a contract or pay any costs incurred in the preparation of proposals. We reserve the right to accept or reject any or all proposals.