Fujitsu – Outsourcing exercise for Configuration Services

fujitsu is a Client of The Logistics Business - Logistics OutsourcingFujitsu Services is the European-centred IT services arm of the Fujitsu Group and is one of the leading IT solutions companies in Europe, Middle East and Africa.  It designs, builds and operates IT systems and services for customers in the Financial services, Telecommunications, Retail and Government markets.  In the UK, the Technical Integration Centre (TIC) comprises a 12m high bay semi-automated warehouse building, covering an area of 141,000 sq. ft.  This includes over 12,000 pallet spaces with the capability of holding over 50,000 different part numbers.

Changes in the business led to a decision to consider outsourcing of all activities, including warehousing, transport, engineering and recycling, but bringing all this together into a specification of requirements was a major requirement which called for external expertise.  The Logistics Business was selected to undertake this task, based on the company’s wide ranging experience of warehouse and transport operations.

Our team of consultants began by preparing detailed process flow maps of each part of the TIC operations.  This formed the basis for collecting the large quantities of data there were needed to describe the storage, picking, engineering and returns activities.  Considerable effort was put into analysing and summarising the data so that high level requirements could be specified, whilst making sure that more detailed “clean” data was also available for those companies chosen to bid.

The specification was prepared and incorporated into a comprehensive Invitation to Tender (ITT) document.  All requirements were included in a single document but this was structured so that each element of operations was clearly defined.  This left the way clear for companies to bid for all or part of the operation and hence allow Fujitsu to place more than one contract if required.  The ITT was developed with close cooperation between our consultants and the Fujitsu team, so that as well as ensuring proper specification of the technical and logistics requirements we also helped Fujitsu specify standards of service and contractual arrangements.  The latter also included requirements for continuous performance improvement.

Whilst the ITT was being prepared, we managed a pre-qualification exercise with potential suppliers and thus arrived at a short list of companies who were then invited to tender.  Following receipt of the tenders we carried out a thorough analysis of the bids and managed the whole tender process so that the Fujitsu team had a very clear view of what was being offered and what the pros and cons would be.  This formed the basis for Fujitsu to present options to the Board so that decisions could be made on the way forward.

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