Tag Archives: carrier management

What are the Best Practices for Efficient Carrier Management?

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?


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.

The Importance of Carrier Connectivity

Capacity tightening, driver shortages, and other industry challenges are having a big impact on shipper operations. To have an effective transportation management system, you must move freight from origin to destination in a reliable, efficient, and cost-effective manner. This is no manual task.

Carrier connectivity is a priority to some and ignored by others. This will dive into the importance and value added in building a TMS system with carrier connectivity in mind.

Connectivity + TMS

According to a Gartner’s Research Director, Bart De Muynck, “How well you run your transportation network has a direct correlation to revenue.” Maximizing this correlation means considering all parts of a TMS – including carrier connectivity.

Some companies choose to skip this step in the decision-making process, and those that do see a slower ROI.

De Muynck states that the benefits of connection carriers into a TMS are substantial, regardless of how the shippers choose to do so. Visibility is a top supply chain priority for most companies, and automated connections and collaborations will improve access to real-time information.

This real-time data will subsequently result in better visibility over your transportation network. This helps shippers to more effectively manage issues such as driver shortages and capacity crunches.

Missed Opportunities

There can be countless missed opportunities if you are not actively engaging in carrier connectivity.

If your company develops an innovative new technology, and you don’t share that with your partners and carriers – that technology adds no value to your business.

iStock-639198068.jpgImportance of Technology

At PLS, we maintain a proprietary, web-based technology platform that compiles and analyzes data from our large network to serve our shippers and carriers.

Technology is a crucial component in most company’s transportation management services. This ensures accurate, real time data which is a foundation of many businesses.


Collaboration is Key

Increasing efficiency and saving money are two main focuses of companies in today’s landscape.

Carrier connectivity creates an environment for collaboration between shippers and carriers. When these two parties collaborate, money is saved and supply chain visibility is increased (therefore increasing efficiency).

Many TMS systems facilitate this collaboration through electronically exchanging information, such as extra capacity on a truck. This aids in the collaboration process, driving all company’s bottom lines.


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