What type of strategy will you use to ensure the business is awarded to SFL ?

You San Francisco Logistics (SFL) are one of the potential suppliers of RGC, given the RFQ you are

expected to develop a proposal. In addition to what is in the RFQ you must determine the following.

You have read the RGQ and feel the scope of work is beyond SFL’s capability. The CEO of SFL has just told you that SFL must win this business. What do you recommend?

What type of strategy will you use to ensure the business is awarded to SFL ?

RGC wants rock bottom pricing. How do you protect yourself from loses? What is your pricing strategy?

What is your value proposition to RGC as a supplier?

What type of supply chain would you recommend?

SFL will have an opportunity to ask 5 questions pertaining to the potential business. You need to develop the 5 questions. These questions, when answered will give you additional information to help secure and win the business. What are the 5 questions?

                            1)

                            2)

                            3)

                            4)

                            5)

INTRODUCTION

Purpose of this Document

This document is the formal Request for Quotation (RFQ) for the current Rapid Global Communications AB opportunity.

Company overview

Rapid Global Communications AB, (RAPID GLOBAL COMMUNICATION), offers mobile communication products for people who appreciate the possibilities of powerful technology. Established in 2001 by Telefonaktiebolaget LM RGC and RGC, the joint venture continues to build on the success of its two innovative parent companies. RAPID GLOBAL COMMUNICATION creates value for its operator customers by bringing new ways of using multimedia communications while mobile. The company has approximately 5,000 employees across the globe working on research, development, design, sales, marketing, distribution and support.

Our vision is “to become THE communication entertainment brand”.

RAPID GLOBAL COMMUNICATION has adopted an Environmental Policy built around six objectives: Product Design, Production, Respect for communities, Comply with the Law, Integration of good environmental quality practices to our business and communication with stakeholders.

RAPID GLOBAL COMMUNICATION shall develop environmental requirements for our key business relationships, particularly our vendor supply chain and assist vendors in meeting those requirements.

See appendices: 9.12 Appendix 12: Logistics Environment requirements and 9.15 Appendix 15: Supplier Social Responsibility Code

RAPID GLOBAL COMMUNICATION Sourcing and Global Logistics team wishes to partner with global logistics providers to develop world class delivery of our products. Regional focus of this RFQ is to provide a customer centric logistics solution.

Please visit xxxx for further information.

Deliver Mobile phones from RAPID GLOBAL COMMUNICATION supply units to below regions

The opportunity of a total forecasted volume 2010/2011 of 62 000 is split into following parts

{C}1.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to Western Europe market

{C}2.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to Central Eastern Europe, Middle East and Africa.

{C}3.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to APAC market.

{C}4.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to LAM markets

{C}5.      {C}Rapid Global Communication Customer deliveries from Supply Units to NAM markets

Service Levels

For each of above regions, RAPID GLOBAL COMMUNICATION is looking into offering our customers different transportation service levels.

{C}1.      Standard

The lead-time requirement for standard lead-time is documented in appendix: 9.3 Appendix 3: Lead-time matrix:

{C}2.      Express

The lead time for express shipments should be at least 2-3 days shorter than standard lead-time

{C}3.      Green

To be a Green alternative the solution shall reduce CO2 emission >50% vs. standard air transport

The proposed solution shall provide a competitive cost level at an acceptable lead time.

The proposed solution shall not drive an increase of the total sustainability foot-print

The proposed solution might be applicable D2D or part of flows and/or specific product flows

Therefore, the Contractor is requested to provide proposal for each of the different service levels.

Deliver goods from Rapid Global Communication fulfillment center in Brno to RAPID GLOBAL COMMUNICATION customers and service locations according:

{C}1.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to Western Europe market

{C}2.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to Central Eastern Europe, Middle East and Africa.

{C}3.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to APAC market.

{C}4.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from supply units to LAM markets

{C}5.      {C}RAPID GLOBAL COMMUNICATION customer deliveries from Supply Units to NAM markets

The same service level requirement described in 1.3.1 Service Levels applies for above.

Total number Supply Units are 8. Details for each Supply Unit are attached in section: 9.1 Appendix 1: Pick-Up Points and Geographical distribution

Nej Jag in en punkt under kraven på services

Reverse Logistics and Collection Hubs

RAPID GLOBAL COMMUNICATION is looking for additional service for reverse logistics from RAPID GLOBAL COMMUNICATION customers to the supply units.

This includes reverse transport as well as services like, consolidating returns, counting of units, issuing return documents on behalf of RAPID GLOBAL COMMUNICATION and packing activities.

Where it’s possible RAPID GLOBAL COMMUNICATION is interested in having a return HUB in each pickup region, i.e. Western Europe, Central Eastern Europe, Middle East, APAC, Americas for later consolidated return transport to the supply units.

RAPID GLOBAL COMMUNICATION has another flow of returns which is returning phones from High volume repair centers to RAPID GLOBAL COMMUNICATION supply units for repair. We do see synergies in adding this flow into this as well. As importing and exporting repaired phones into China is incurring a VAT cost, RAPID GLOBAL COMMUNICATION would like to understand the Contractors capabilities to support import and export services of repaired phones in China.

Approximate volumes:

To hub, from

EMEA                               40k per month

Americas                         10 k per month

APAC                                10 k per month

EMS RF                            50 k per month

From hub, to

Supply units in China   50k per month

Additional services

RAPID GLOBAL COMMUNICATION is also interested to know about the Contractors capability to offer addition services as repacking, smaller reworks, smaller customization, split pallets into smaller shipments.

Furthermore, RAPID GLOBAL COMMUNICATION would also like to know the Contractors capability for doing stock management, stock ownership transfer, order management for specific customer setups.

Confidentiality

Note that the information in this document and the opportunity in general must be treated according the Non-disclosure Agreement.

Contact Details

All communication regarding this RFQ should be directed to below contact (or through the Ariba system as described in section 8 Format of tender response.

Process and Timetable

It is the intention of RAPID GLOBAL COMMUNICATION to conduct a comprehensive, diligent and yet speedy tender process and by this giving the Contractor partner the possibility to enter the Global Transport distribution as early as possible.

In the RFQ Quote Matrix meeting the Contractor will be invited to ask questions regarding how to fill in the Quote Rate Matrix, see Appendix 2: Quote rate matrix.

In the RFQ walkthrough meeting the Contractor will be able to ask questions related to the RFQ. To do this as efficient as possible, questions should be sent in advance by e-mail to

The tentative timetable for this RFQ process is as follows:

Activity Responsible Start Finish
RFQ Invitation Letter RAPID GLOBAL COMMUNICATION 2010-04-19
RFQ distributed RAPID GLOBAL COMMUNICATION 2010-04-23
Questions submitted for RFQ walkthrough phone RAPID GLOBAL COMMUNICATION 2010-04-293 p.m. CET
RFQ Quote Matrix phone meetings RAPID GLOBAL COMMUNICATION and Contractor 2010-05-03 2010-05-10
RFQ walkthrough phone meetings (Questions should be sent in advance) RAPID GLOBAL COMMUNICATION and Contractor 2010-05-03 2010-05-10
Due date, Tender response of rate sheet Contractor 2010-05-17, 12.00 AM CET
Tender response (Ariba) Contractor 2010-05-28
Tender response presentation (Lund) Contractor 2010-05-31 2010-06-11
Tender evaluation RAPID GLOBAL COMMUNICATION 2010-06-14 2010-06-28
Contract negotiations RAPID GLOBAL COMMUNICATION 2010-06-28 2010-07-15
Signing of contract 2010-07-16
Preferred implementation date Q3’10

Figure 1 – Tentative timetable for RFQ process

DESIRED BUSINESS RELATIONSHIP

This section describes the type of business relationship that RAPID GLOBAL COMMUNICATION would like to establish with prospective Contractors.

Management of Relationship

In cases where legal contracts, e.g. service agreements or frame agreements, already exist, it is preferred that above mentioned agreements are amended with additional requirements outlined in this RFQ document.

If no Logistics agreement exists it is expected that the Contractor will accept RGC terms and conditions specified in this RFQ.

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