Technology has led many shippers to live in the digital world. Despite automation and efficiency protocols to meet all shipping needs, companies need to develop a carrier compliance scorecard, analyzing specific metrics to determine what carriers are best.
A carrier scorecard and a company’s bottom line are best friends. And as explained by Inbound Logistics, “By relying on simple data captured over time, over‐the‐road shippers are better positioned to make informed decisions on‐the‐fly or in future bids to ensure their desired mix of cost, coverage, and performance.”
Shippers can use a transportation management system (TMS) to create an effective carrier scorecard with applicable metrics, no matter the size of the operation.
Maintaining a successful fleet requires the vigilant tracking of performance scorecard offers. They also help shippers determine a positive return on investment and lower compliance risk.
The problem with carrier compliance
Modern technology and a global market amp up the issues of carrier compliance. Throw in cybersecurity risks, trade wars, government sanctions, foreign exchange markets, bankruptcies, and a global pandemic—the result: a compliance risk nightmare for the supply chain and transportation network management.
Using a TMS helps with end-to-end compliance management
A TMS is a platform designed to streamline shipping processes and offers effective supply chain management solutions. TMS can create a carrier scorecard that analyzes various metrics, including claims handling, the accuracy of billing, on-time pickup, and delivery performance.
Tips for building a Carrier Compliance scorecard to manage risk
Successful carrier compliance scorecards allow quantitative rankings for each carrier, making an easy determination of what carriers should remain and why. Here are some helpful steps:
- Connect all partnering LSPs to the TMS.
- Leverage EDI and API to track carrier data and performance.
- Use data to validate annual RFP terms, changes, or processes.
- Remember to include invoicing data accuracy too.
- Think about pickup timeliness and driver performance.
- Continuously update the TMS.
- Repeat and improve.
Increase supply chain value with proactive carrier Compliance scorecard management today
Mitigating compliance risk is a constantly evolving challenge for the supply chain. The solution is understanding performance analytics measured by an effective scorecard. Building a carrier scorecard doesn’t have to be a difficult task. Utilizing the right TMS and selecting specific metrics for the shipper will result in a carrier scorecard that minimizes compliance risk and adds to every company’s bottom line.