Carrier performance monitoring should be an absolutely essential component of how any company is run. Good performance by your carriers or logistics providers can create cost savings for you as well as build goodwill between yourself and whomever you are shipping to. On the other hand, poor performance reflects badly on your company and can cost you money as well as the trust of those you serve.
Regular evaluations should be done at least monthly, especially when regarding your LTL carriers. It is best to monitor the tangible, and focus on metrics that best align with the services that you would like to get from your carrier. Metrics, also know as key performance indicators (KPIs), can provide visibility, which should be used as a tactical tool to reveal problematic areas in the carrier’s performance. These metrics can be found by requesting regular monthly reports from the carrier, measuring performance of your carrier yourself, or by using software.
It is important to let your carriers know that you intend to monitor them, as this will create accountability on their end. It will create the basis with which you can drop a carrier if their performance is unacceptable. Some metrics that you may wish to consider are the following: claims, on-time pickups and deliveries, errors in billing, and missed pickups, to name a few. Every aspect of the scorecard report that you or your carrier provides should do its best to represent the level of service quality that the carrier provides, and then match it against your company’s expectations.
Good Carrier Performance Monitoring can also provides your company with the following:
All in all, proper analysis of carrier performance through monitoring key performance indicators can lead to dramatic increases in shipping efficiencies for your company. This saves your company money, improves your relationship with your customers and carriers, and reflects well on your company’s image as a whole through improved service.