Set up a performance scorecard with measurable KPIs critical to your transportation needs, advises Anderson.
“Meet with each carrier and set up a manageable number of high-value KPIs, such as inbound and outbound cost to serve, customer satisfaction measures such as on-time pickup and on-time delivery, transportation cost per shipment or order, invoice accuracy, and data availability.
“It’s also important to establish KPIs such as on-time delivery, on-time pick up, and safety performance with a 3PL and have them documented in your agreement,” says Alberico.
“Having clear metrics gives you a level of security and helps you manage the relationship with the third-party provider.”
Tip for success: Set up monthly or quarterly review sessions with your carriers or your 3PL to talk about their performance in relation to the KPIs.
Then discuss your level of satisfaction with their service, and talk about any adjustments that need to be made.