5 Ways to Revamp Your Everyday Carrier Management

carrier-management"How do I improve my carriers' performance? They are always inconsistent or late. I'm not sure where to start!"

Does this sound familiar? Carriers are the link that can make or break service to your customers - but are often rarely looked upon for improvement. We'd like to share with you five ways to revamp your everyday carrier management - a key componenet for a winning transportation management strategy.

To learn more about managing carriers to drive breakthrough results, please join us for our webinar on August 13th – “The Three P’s of Carrier Management” at  11:00 a.m. EST.

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1. Set clear expectations with individual performance targets.

As with any performance review, it’s always important to be on the same page with your carrier to ensure they know expectations. If you are dealing with very poor performance, sometimes it’s better to be clear on the end goal, but give them realistic targets to meet - especially if the relationship is important. Keep the communication open, and treat the relationship like a supply chain partnership - not just a business transaction.

2. Make the results visible.

If you care about the numbers, make sure it’s visible to both you and your carrier. This keeps the performance in the forefront, and carriers know the score of the game. After a while, they will start to expect these results and will hold themselves accountable.

3. Measure the carrier performance by stop level, and document delay root causes.

The more frequently your information comes in and is made visible, the quicker you are able to see and understand the issues. Measuring by stop level and documenting root causes helps you to understand the trends of root causes. Ultimately, this data will help you pin point if there are issues with pick-up, transit, or delivery, etc. This data helps tremendously in your problem solving with the carrier. You may even find that the issues have nothing to do with the carrier at all!

4. Review those performance trends by lane with your carrier on a regular cadence.

Reviewing metrics with your carrier helps to initiate discussion, understand issues, and facilitate problem solving between both parties. With concrete data at your finger tips, you can expose the problems that may have been hidden.

5. Award business based by carrier performance scores.

Looking for positive reinforcement? Need to motivate a carrier to work with you on its carrier performance? Like psychology tells us, motivation is often driven by consequence or reward. Awarding business based on scorecards, among other factors, is a beneficial way to do this.

 

Posted by Michelle Cribbs

Michelle has over 10 years of experience in supply chain, transportation and purchasing management. While at LeanCor, Michelle has worked alongside purchasing professionals at LeanCor Logistics customer facilities to increase and improve supplier performance, manage and reduce inventory, and decrease transportation cost. Her knowledge and understanding of MRP systems is instrumental in streamlining customer processes with LeanCor’s logistics solutions. Prior to LeanCor, Michelle served as a logistics/materials coordinator for Siemens Energy & Automations where she utilized SAP to analyze current stock with customer demand for assembly scheduling. Prior to Siemens, Michelle was an account executive at Total Quality Logistics, specializing in flatbed and special equipment freight brokerage. Michelle is a graduate of Pennsylvania State University, where she received a Bachelor of Science in Business Logistics and International Business, as well as two minors in International Studies and German. She is currently pursuing her CPSM (Certified Professional in Supply Management) certification from Institute of Supply Management (ISM).

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