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How to measure and ensure carrier performance

By Dave Weakly, Business Development at King Solutions

performance ratingCarrier performance is an integral part of the supply chain. It is also the only portion where products are completely out of the hands of the companies that sell and ship them. Because of this, shippers need to make sure that their carriers are performing up to their expectations.

Does your carrier track its performance?
The best carriers want shippers to know that they are performing at the highest level, and they will effectively demonstrate this performance by providing detailed reports. If you are working with a carrier that either hides its performance metrics or seems to obscure otherwise straightforward data points, it may better serve your business to find a carrier who will be open and honest about their performance.

Focus KPIs for carriers
Carrier performance can be measured using several key performance indicators. These should include:

  • On-time performance: how often are your deliveries made on time? If there were delays, what were the causes?
  • Damage claims: how often do products arrive damaged? If a claim is made, how quickly is it resolved?
  • Invoice accuracy: it’s a good habit to frequently audit invoices and check for billing/payment errors.
  • Accessorial charges: what are costs for fuel surcharges, carrying hazardous materials, etc., and how do they compare to other carriers?
  • Capacity: does your carrier offer LTL shipping? How well do they work with your team on fitting products into their shipment schedule?
  • Communication and responsiveness: can you get in touch with your carriers while they are on the road? How long does it take to respond? Are they available for emergency shipments?

As carrier performance is checked, you need to be able to hold your carrier partners accountable. Conducting periodical reviews of your carriers will help you choose between those that are best serving your business.

3PL partners can facilitate the process
Carriers are meant to alleviate the work that goes into deliveries, but with the amount of data and accountability analysis that goes into choosing the right carriers, the amount of time that shippers invest can become a drag on operations.

By partnering with a third party logistics provider, you can rest easy knowing that your carrier’s performance will be frequently measured and they will be held accountable when necessary. It’s an easy way to make sure you are getting the best deal on the investment you make in your supply chain. To learn more about measuring carrier performance and how a 3PL like King Solutions can help, contact us today.

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