Trade shows like MODEX and PROMAT are always on the horizon. These events, along with countless other material handling equipment expos, bring together industry professionals looking to explore cutting-edge technologies, connect with solution providers, and/or simply network. If your goal is to find material handling providers who can engineer, fabricate, install, and commission your solution, the enormous number of options can feel daunting. Choosing the right partner for your project is a significant challenge, and rest of this missive aims to guide you through the process of identifying and selecting the best provider for your needs.
First, it is important to clarify that St. Onge Company does not resell or manufacture any material handling solutions. This independence allows us to provide advice objectively, focusing solely on helping you make informed decisions. There are also multiple approaches to developing designs and selecting a partner for your project. Our thoughts here start with the assumption that you have a developed solution in-hand and explores the proven approach to document design specifications / requirements, identify candidate providers, solicit provider designs/bids, and evaluate responses to select the best provider.
Document Design Specifications
Once your solution has been developed—either internally or with the support of an independent consultant—the next step is to create a comprehensive document outlining the design specifications and a request for proposal (RFP) package. This document should detail throughput and storage requirements, functional system specifications, technical needs, testing standards, project schedules, and key performance indicators. The RFP package should include response forms to facilitate side-by-side comparisons of vendor designs. Pricing tables are essential, requesting vendors to break down costs for materials, installation, control software, annual maintenance, freight, and spare parts. Including clear selection criteria in your RFP helps providers understand what factors will influence your decision. Effort put into this step in documenting requirements from all stakeholders from a business, technical and tactical perspective is crucial to ensuring you select the best possible provider for your project.
Identify Candidate Providers
With your solution documented, it is time to identify potential material handling providers. Today, you can leverage your favorite AI tool by entering your solution requirements and quickly generating a list of qualified candidates. However, this is just the starting point. A critical decision to make is whether you want to consider original equipment manufacturers (OEMs), integrators, or both. The choice depends on your specific design requirements and the elements most vital to your project’s success. Generally, an OEM is the ideal choice if they can deliver the complete solution, while an integrator is preferable when your project requires multiple OEMs to meet its needs. But the safest route is to include both in your candidate options.
Select Candidate Providers
Selecting candidates from your lengthy list of options starts by arranging preliminary calls and meetings with your identified candidates and trying to visit operational sites where they have implemented similar designs. Trade shows offer an excellent opportunity to meet all your prospective suppliers in one location and observe their technologies firsthand. With this information in hand, send your RFP to five to seven candidates who have demonstrated their ability to deliver your design and requirements. The insights gathered during this stage also help define your ultimate selection criteria and may include the following:
- Interest in your project
- Time to dedicate to the bidding process
- Comfort level with the sales team
- Quality and track-record of design solutions
- Approach to control software solutions
- Favorable expected lead times
- Experience and solid reputation
- Relevant industry expertise
Bidding Process Management
The duration of the bidding process is determined by the complexity of your project and typically ranges from five to eight weeks. During this phase, providers may request site visits to your operations, clarify design requirements, and prepare their proposals to align with your specifications. The project selection team should use this time to develop an evaluation matrix based on the selection criteria outlined in the RFP. Each factor is usually weighted, and a scoring system is established to rate each provider.
Evaluating Bids / Selecting a Provider
Providers should be invited to present their proposed design solutions to your project team, explaining how their approach meets your requirements. Many providers will offer simulation models or 3D visualizations to enhance understanding of their designs. It is also beneficial if the provider brings the proposed project manager to the presentation. The selection team then uses the evaluation matrix to score the responses and presentations. Core selection criteria, based on the original process for choosing candidates, typically include (in no specific order):
- Equipment Design Solution
- Technical Design (detailed BOM)
- Alternative Designs/Budget Options
- Control Software Solution
- Solution Scalability
- Testing Strategy
- Pricing
- Schedule
- Maintenance Plan
- Project Manager
- Installation Team
Negotiations help secure the best price and concessions like maintenance plans, payment terms, project manager requirements, and ramp-up support. Furthermore, it is essential to incorporate relevant legal terminology related to MHE solutions and IT input into the process and selection criteria when you possess the leverage.
Project Kick-Off
Once the selection phase concludes, the real work begins. It is critical to thoroughly document all requirements—including design volumes, software controls, testing protocols, and expected performance—in the provider agreement. Investing time upfront to research available technologies, develop a comprehensive master plan, attend trade shows, tour existing operations, prepare clear specifications and RFPs, and manage a structured evaluation process will set your project up for long-term success.
—Norm Saenz, St. Onge Company
