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 scorecard to manage compliance risk
Successful carrier 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 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.