Logistics Tech Outlook

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Dan Cavanaugh, Da Vinci | Logistics Tech Outlook | Top Cloud Based Warehouse Management System

The Next Warehousing RFP Will Audit Your Operation Before It Prices It

Dan Cavanaugh, CEO and President , Da Vinci

Logistics Performance Visionary

Editor’s Note: Third-party logistics providers face growing scrutiny as shippers demand greater visibility into operational costs, service performance and inventory accuracy before awarding contracts. For logistics executives and warehouse technology leaders, establishing reliable performance metrics and integrated data systems is becoming essential to demonstrating operational credibility, strengthening customer relationships and maintaining competitiveness.

Most 3PLs prepare for a warehousing RFP the same way. They sharpen the rate card, look for room on storage and decide how aggressive to be on handling. Far fewer can quickly pull order-to-shipping cycle time and inventory accuracy by location for a comparable account and that's increasingly what a shipper expects to see before it signs.

Armstrong & Associates' 2026 market report, Reshaping: Third-Party Logistics in a Decade of Structural Change, shows why that gap matters. Its warehousing section lists the pitfalls that derail outsourcing, drawn from decades of advising shippers. The list is written for the buyer, which makes it the clearest preview a 3PL will get of how its next bid will be judged.

Shippers are being told to bring data and expect it back

Taken together, the advice describes a much tighter RFP. Shippers are advised to benchmark what they pay against the current market several months before renewal and to go to bid if they're above it. They're told to give bidding 3PLs a full operating profile: order data that shows seasonality and shipping modes, a complete item master with every SKU and product cube, shipping and receiving procedures and the performance KPIs they expect, such as order-to-shipping cycle time and inventory accuracy by location. They're told to structure pricing so every bid can be compared on the same terms, from storage and handling through startup costs, IT and overhead. And they're warned against re-signing an underperforming 3PL simply because nobody had time to plan a switch.

The report also notes that most warehousing agreements run two years or longer and it tells shippers whose pricing was set during the post-pandemic peak to review those contracts well ahead of renewal. Plenty of 3PLs will be on the receiving end of that advice over the next year.

The RFP becomes an audit and the rate card won't win it

When a shipper follows that playbook, the RFP stops being a pricing exercise. The shipper arrives with clean data and clear expectations and it wants each bidder's answers in a form it can line up side by side. The 3PL now has to prove what the work will cost and how well it will be done.

Every bidder will hand in a rate card, so the rates alone rarely separate the bids. Those rates, whether built on pallet, cube or hundredweight pricing, are only as defensible as the cost data behind them. The difference is whether a 3PL can show, from its own floor, the labor and handling cost behind each activity it's pricing, along with a track record on the KPIs the shipper just listed. The report cautions shippers that cost categorization shouldn't be treated casually. The same holds on the 3PL side, where many operators still assemble those numbers by hand in the week the RFP is due, pulling from billing, labor and operations data that live in different places.

  • When one RFP question takes three spreadsheets to answer, the 3PL has a data problem and the RFP is just where it shows up.


What RFP-ready looks like on the 3PL side

Being RFP-ready means the answers exist before the questions arrive. That starts with knowing cost by activity and by customer rather than leaning on a blended rate: what receiving, storage, picking, packing and each accessorial actually cost for a given account. Those figures only hold up when billing and labor are captured in the same system that records the work.

The KPIs shippers now expect the same treatment. If cycle time and inventory accuracy already get reviewed with the customer every month, an RFP response means pulling a report. If they don't, someone builds one under deadline, usually by reconciling spreadsheets from billing, labor and operations. When one RFP question takes three spreadsheets to answer, the 3PL has a data problem and the RFP is just where it shows up.

Why the 3PL side of the table matters now

Warehousing demand has held up. Armstrong puts U.S. value-added warehousing and distribution at $72.7 billion in gross revenue for 2025, up 4.4 percent through a freight recession that hit transportation hard. That gives shippers options and the ones following this advice will use a structured RFP to test them.

Price will still matter in those bids. But the 3PLs that keep their best accounts through that process will be the ones that can show a shipper what the work costs and how well it's done, with numbers the shipper can compare directly. Those same operators are also in the best position to win the accounts that move when other 3PLs can't answer the questions.

Before the next renewal conversation, run a test on your largest account. Answer the questions the report tells shippers to ask: what it costs to serve them activity by activity, what cycle time looked like last quarter and where inventory accuracy stands by location. Then look at how long it took to get those answers and how many people were involved. If it took days and a small team, that gap will show up in the customer's next RFP long before anyone compares rates.

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The articles from these contributors are based on their personal expertise and viewpoints, and do not necessarily reflect the opinions of their employers or affiliated organizations.