Most transportation service providers go to great lengths to do a good job. But do you actually know which carriers are your top performers? Do you have the metrics to determine which carriers provide the best value, volume and efficiency? Or the right details to help carriers identify issues and improve service?
Unless you are tracking carrier performance using objective metrics and specific benchmarks, you don’t know what you don’t know. That’s why it’s so important to monitor and analyze carrier activity and create regular carrier performance reports.
Sometimes called carrier scorecards, these reports are generated from data points collected throughout each shipment. Basic categories measured generally include:
- pickup performance
- on-time delivery
- exception-free delivery
- claims-free service
- invoicing accuracy
- claims settled within 30 days
Depending on your needs, you may also choose to monitor other pertinent factors, such as freight costs per lb/km, fuel usage, detention rates and load-acceptance/expiration rates. Indicators recorded and reports generated can be customized by category, type of carrier (truckload, LTL, ocean or air) or other variables to give shippers practical, reliable information.
Compiling wide-ranging data from sources throughout your transportation chain – and analyzing it carefully and closely – can give you important insights to help you evaluate, manage and enhance carrier performance. When you notice an anomaly or red flag, you can easily drill down into the data to reveal the underlying specifics.
You may choose to generate and review reports on any schedule you prefer: quarterly, monthly, weekly or even on demand. The point is, receiving regular reports keeps you alert to operational trends and potential performance issues, so you can take action and regain control quickly and effectively.
It’s extremely important not to think of carrier scorecards as tools to threaten or intimidate your transportation partners. In fact, the beauty of this kind of data-driven reporting is that it can reveal problems anywhere in the system. It’s not unusual for shippers to discover inefficiencies in their own processes that are hindering carriers’ ability to perform optimally. The goal of carrier scorecards is not to assign blame or trigger penalties – it is to proactively improve systems and services for the benefit of all partners in the chain.
Transporeon boosts performance within logistics operations by collecting data across the transportation process to create performance reports that lead to win-win relationships among shippers and carriers.