Carrier Performance
Also known as: Carrier Scorecard, Carrier Metrics, Carrier Evaluation
Definition
Carrier performance measurement is the systematic tracking and evaluation of how well carriers meet service commitments. It helps shippers make informed decisions about carrier selection, negotiate better contracts, and hold carriers accountable.
Key Performance Metrics
| Metric | Description | Target |
|---|---|---|
| On-time delivery | % delivered by promised date | 97%+ |
| Damage rate | % of shipments with damage | <0.5% |
| Claim ratio | Claims filed vs. shipments | <1% |
| Claim resolution | Days to resolve claims | <30 days |
| Tracking accuracy | % of shipments with good tracking | 99%+ |
| Billing accuracy | Invoices without errors | 98%+ |
Building a Carrier Scorecard
Step 1: Define Metrics
- Choose relevant KPIs for your business
- Set benchmark targets
- Weight metrics by importance
Step 2: Collect Data
- Integrate tracking data feeds
- Capture delivery outcomes
- Track claims and resolution
Step 3: Calculate Scores
- Score each metric (e.g., 0-100)
- Apply weights
- Calculate composite score
Step 4: Review and Act
- Share scorecards with carriers
- Discuss improvement areas
- Adjust routing based on performance
Sample Scorecard Weights
| Metric | Weight |
|---|---|
| On-time delivery | 40% |
| Damage rate | 20% |
| Claims handling | 15% |
| Tracking accuracy | 10% |
| Billing accuracy | 10% |
| Customer complaints | 5% |
Using Performance Data
- Routing decisions - Prioritize better performers
- Contract negotiations - Leverage data for better terms
- Issue resolution - Identify systemic problems
- Capacity planning - Know who to rely on during peak
- Carrier development - Work with carriers to improve
Review Frequency
- Weekly operational reviews
- Monthly scorecard updates
- Quarterly business reviews with carriers
- Annual contract evaluations
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