How Procurement Teams Should Evaluate Moving Companies Beyond the Lowest Price

Selecting and evaluating moving companies through a competitive tender can appear straightforward: issue the scope, collect quotations and award the work to the lowest bidder.

In practice, moving quotations are rarely directly comparable.

One supplier may include professional packing, building protection, specialist handling and destination delivery. Another may submit a lower price that excludes access charges, storage, customs-related services, after-hours work or third-party costs.

The lowest initial quotation can therefore become the most expensive option once variations, delays, damages and operational disruption are considered.

For procurement, facilities and human resources teams, the objective should not simply be to identify the lowest price. It should be to select the supplier offering the best combination of cost, operational capability, risk control and service reliability.

This guide provides a practical framework for evaluating moving companies for employee relocations, office moves, IT relocations and other business-critical projects.

Why Moving Quotations Can Differ So Significantly when evaluating moving companies

Price differences do not always mean one supplier is more competitive than another. They can indicate that the suppliers have interpreted the requirement differently.

Common differences include:

• Estimated shipment volume or number of workstations
• Packing materials and packing standards
• Number of crew members and vehicles
• Working hours and weekend requirements
• Building access, lift bookings and loading restrictions
• Dismantling and reassembly
• IT disconnection and reconnection
• Temporary storage
• Origin and destination terminal charges
• Customs clearance and documentation
• Insurance or transit protection
• Disposal of unwanted furniture or packing materials
• Use of subcontractors or overseas partners

Before comparing prices, procurement teams should normalise the scope. Every bidder should be pricing the same service assumptions, volume, locations and exclusions.

Without this step, a commercial comparison may reward the supplier that excluded the most items rather than the supplier providing the best value.

Lowest Price Versus Total Cost

A moving company’s quotation is only one component of the total cost of a relocation.

A more complete calculation should consider:

Total cost = quoted price + predictable additional charges + internal business costs + risk exposure

Internal and risk-related costs can include:

• Employee downtime
• Business interruption
• Missed building access windows
• Additional rent caused by project delays
• Replacement of damaged furniture or equipment
• IT downtime
• Emergency labour or transport
• Storage caused by schedule changes
• Claims administration
• Employee dissatisfaction during an international assignment
• Time spent managing supplier problems

A supplier that is slightly more expensive but delivers a well-planned, accurately scoped and properly managed project may provide a substantially lower total cost.

Establish Mandatory Qualification Requirements

Before scoring commercial proposals, procurement teams should establish a set of pass-or-fail requirements.

These may include:

• Valid business registration and relevant operating licences
• Appropriate public liability, workers’ compensation and cargo insurance
• Documented health and safety procedures
• Trained and identifiable employees
• Suitable vehicles, equipment and packing materials
• A documented claims process
• Data protection procedures where employee information is handled
• Financial stability
• Relevant client references
• Disclosure of subcontractors and overseas partners
• Ability to meet the required schedule and locations

For office and IT relocations, suppliers may also need risk assessments, method statements, equipment-handling procedures and experience working in live corporate environments.

Occupational health and safety should be treated as a substantive evaluation area rather than a box-ticking exercise. ISO 45001 provides an internationally recognised framework for managing workplace health and safety risks.

Use a Weighted Supplier Scorecard evaluating moving companies

Price should remain important, but it should not automatically determine the award.

The following scorecard can be adapted for an employee relocation programme, office move or international moving tender.

Each area can be scored from 1 to 5:

• 1 – Poor: Does not meet the requirement
• 2 – Weak: Partially meets the requirement
• 3 – Acceptable: Meets the basic requirement
• 4 – Strong: Exceeds the requirement
• 5 – Excellent: Demonstrates clear added value

The score is then multiplied by the relevant weighting.

This approach makes the decision more transparent, defensible and easier to explain to internal stakeholders.

Evaluate the Supplier’s Proposed Methodology

A strong proposal should explain how the move will be delivered—not simply state that the supplier can perform it.

For an office relocation, the methodology should address:

• Pre-move survey and planning
• Inventory and labelling
• Floor plans and destination mapping
• Packing and protection
• Phased or departmental moving
• IT equipment handling
• Building and lift protection
• After-hours or weekend execution
• Contingency planning
• Post-move support
• Waste removal and material recovery

For employee relocations, it should cover:

• Pre-move consultation
• Household goods survey
• Packing and inventory procedures
• Shipping options and transit times
• Customs documentation
• Destination services
• Temporary storage
• Delivery and unpacking
• Claims support
• Communication with the employee and HR team

A supplier that understands the requirement should be able to describe responsibilities, dependencies, risks and escalation procedures clearly.

Examine the Assumptions and Exclusions

The exclusions section can be more revealing than the price itself.

Procurement teams should look carefully for:

• Charges stated as “at cost”
• Customs, duties or taxes excluded
• Terminal and port charges excluded
• Shuttle services excluded
• Long-carry or stair-carry charges
• Weekend or after-hours surcharges
• Storage and handling charges
• Waiting time
• Parking, permits and building deposits
• Unpacking or debris removal
• Dismantling and reassembly
• Heavy-item or specialist-handling charges
• Currency and fuel adjustments
• Limited rate validity

Where possible, ask suppliers to provide fixed rates or a clear schedule of charges for foreseeable variations.

An “all-inclusive” price should also be defined. The phrase has little value unless the inclusions and exceptions are written into the proposal.

Assess Regional and Destination Capability

International moves require coordination between the origin provider, freight partners, customs brokers and destination agent.

Procurement teams should ask:

• Does the supplier have its own offices in the relevant countries?
• If partners are used, how are they selected and monitored?
• Who remains accountable to the client?
• Will employee information be shared with third parties?
• Are destination charges confirmed in advance?
• How are customs delays and exceptions managed?
• Is there one point of contact across the move?

For companies moving employees or assets throughout ASEAN, regional coordination can be more important than simply having a low origin price.

R7 supports relocations and moving projects across Malaysia, Singapore, Thailand, Vietnam, Indonesia and the wider regional network through coordinated relocation services.

Review Safety, Insurance and Claims Handling

Procurement teams should request evidence rather than accept general statements.

Useful documents can include:

• Insurance certificates
• Sample risk assessments
• Method statements
• Incident reporting procedures
• Staff training records
• Vehicle and equipment inspection processes
• Claims forms and escalation procedures
• Examples of protective materials
• Business continuity plans

Insurance limits should also be reviewed carefully. Public liability insurance does not automatically cover the value of goods in transit, and basic carrier liability may be significantly lower than the replacement value of the items being moved.

Ask the supplier to explain precisely what is covered, what is excluded and who manages the claim if damage occurs.

Check References Properly when evaluating moving companies

Reference checking should go beyond asking whether the client was satisfied.

Useful questions include:

• Was the final invoice consistent with the original quotation?
• Were variations communicated before costs were incurred?
• Did the supplier meet the agreed schedule?
• How well did the supplier communicate?
• Were there any damages or claims?
• How were problems handled?
• Did the supplier rely on undisclosed subcontractors?
• Would the client appoint the supplier again?

Where possible, select references involving a similar project type, volume, geography and level of complexity.

Test Pricing with Realistic Scenarios

Rate schedules can look competitive until they are applied to an actual move.

Procurement teams can test shortlisted suppliers using standard scenarios such as:

• A 5 CBM employee shipment from Singapore to Kuala Lumpur
• A 20 CBM international household goods shipment
• A 100-person office relocation over one weekend
• An IT move involving servers and workstation equipment
• A project requiring temporary storage
• A destination with restricted lift or loading access

Ask each supplier to calculate the complete expected charge using the same scenario.

This helps reveal minimum charges, hidden extras, volume breakpoints and inconsistent commercial assumptions.

Look at Account Management and Governance

Moving projects involve many stakeholders: employees, HR, procurement, facilities, IT teams, building management, customs authorities and overseas agents.

The supplier should demonstrate how these relationships will be managed.

Important considerations include:

• A named account manager
• Defined escalation channels
• Regular status reporting
• Centralized shipment tracking
• Response-time commitments
• Exception reporting
• Invoice reconciliation
• Management reviews
• Service improvement processes

A good operational team without effective communication can still create significant internal workload for the client.

Include Measurable Service Levels

Once a supplier is selected, expectations should be translated into measurable service levels.

Potential key performance indicators include:

• Quotation turnaround time
• Survey completion time
• On-time packing
• On-time collection and delivery
• Project completion against schedule
• Damage and claims frequency
• Claims resolution time
• Response time to enquiries
• Invoice accuracy
• Employee or stakeholder satisfaction
• Safety incidents
• Compliance with reporting requirements

The contract should also explain what happens when performance falls below the agreed standard.

Warning Signs Procurement Teams Should Not Ignore

A particularly low price should prompt additional questions when accompanied by:

• No physical or virtual survey
• Vague service descriptions
• Missing destination charges
• No stated shipment volume
• Unclear insurance coverage
• Undisclosed third parties
• No formal claims procedure
• No project methodology
• Very short rate validity
• Large deposits without suitable protections
• No contingency plan
• Pressure to award quickly
• Frequent use of “subject to actual cost”

These points do not automatically disqualify a supplier, but they should be clarified before an award is made.

A Practical Five-Step Evaluation Process

Procurement teams can structure the appointment process as follows when evaluating moving companies:

1. Prequalify suppliers

Confirm licenses, insurance, operating capability, financial stability and relevant experience.

2. Issue a common scope

Provide every bidder with the same inventory, locations, volumes, schedule, access information and required services.

3. Conduct clarification meetings

Allow shortlisted suppliers to explain their methodology, assumptions and risks.

4. Complete the weighted evaluation

Score commercial and non-commercial criteria using an agreed evaluation panel.

5. Finalize service levels and governance

Confirm pricing, escalation procedures, reporting, claims handling and performance measures before the work begins.

The Best Value Is the Most Predictable Outcome

Evaluating moving companies beyond the lowest price does not mean ignoring cost. It means understanding what the organization is actually buying.

A strong procurement decision balances price with:

• Complete and transparent scope
• Operational competence
• Safety and insurance
• Schedule reliability
• Regional capability
• Effective communication
• Claims support
• Reduced disruption
• Predictable final cost

The best supplier is not necessarily the company with the cheapest initial quotation. It is the company most capable of delivering the required outcome safely, reliably and without unexpected costs.

R7 International supports corporate procurement, HR and facilities teams with international relocations, workplace moves, IT relocations, storage, logistics and specialist handling across ASEAN.

To discuss an upcoming tender or request a structured relocation proposal, contact info@r7intl.com or visit the R7 contact page.