Customers are the main focus of businesses now, and logistics companies are no exception. Many logistics companies are customer focused and often forget about another party involved – freight carriers. Carrier performance is a major contributor to a company’s success, and that’s why proper carrier management should be implemented in a business’s practice and strategy. Better communication and service for carriers can drive major performance improvements, which will ultimately results in customer satisfaction.

What Good Carrier Performance Management Should Include?

TMS

Essentially, convenient and easy-to-use technology is a must for an efficient supply chain. For carrier management, it plays a crucial role, since it enables data storage, reporting, and load management. Providing a highly functional, multifaceted transportation management system with EDI integration and responsive mobile version will make your carrier’s work more efficient and easier. It is important to ensure a user-friendly interface and simple functionality, because many companies are developing in-house TMS’s, which makes competition fiercer.

Performance measurement

After making sure you have a good tool for communication, data storage, and reporting, it’s important to analyze performance. Carrier performance can be measured in a variety of ways. When you’re tracking it the right way, it takes your company less time and effort to identify the issues and fix them. One key concern about performance deliverable is that these metrics should be accurately communicated not just to shippers and companies, but to the carriers themselves. This leaves the responsibility of improvement not just on your stuff, but on behalf of freight carriers too. On-time delivery, check calls, and data accuracy is the most important KPI’s for freight carriers.

Ultimately, it all comes to clear communication and transparent reporting. Enhancing this will drastically improve carrier performance and the company’s results.