How do relocation management companies choose suppliers?

Suppliers play a key role in making relocations go smoothly. Senior VP of Global Services and Supply Chain Tracey Gatlin explains how they’re selected in this Relo Tip Tuesday.

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Complete transcript: “Hi, I’m Tracey Gatlin, and I’m vice president of global supply chain here at Plus Relocation. Today, I’m going to talk about how relocation management companies, or RMCs, select suppliers.

Suppliers are partners that are vital to provide relocation services. They add value to the relocating employee’s experience by being experts in their own area. Working through a supply chain is a more efficient and cost-effective solution for an RMC and its clients, versus investing in resources such as trucks, warehouses or employees in every destination. In addition, not owning the supply chain means that an RMC is free to select the best suppliers available, regardless of ownership.

So, how does an RMC select suppliers? RMCs follow a strategic sourcing process that includes a rigorous RFP. This process may or may not include a best-and-final presentation as well as site visits. This is done to ensure that suppliers are selected to meet the needs of the RMC and its clients. Many corporate clients follow a similar process when they’re selecting their RMC.

Selection criteria vary depending on the type of service that’s being delivered, but most RMCs will consider the following when making their selection:

the ability to meet the scope of services and expectations
total cost
service quality
geographical coverage
staffing
risk management philosophy
financial health

And, in addition, innovation is a key criteria in today’s market.

Once a supplier is selected by an RMC, the RMC will conduct a thorough onboarding process, which includes training the supplier to set them up for success. On an ongoing basis, suppliers are then evaluated on their performance and service quality. Contract terms and conditions are also reviewed regularly to ensure clients have the best service and price.

I hope this helps you understand how suppliers are selected by RMCs. Thanks for watching.”