Measuring on time carrier performance
Many organizations measure on a monthly basis on time carrier performance
assuring both manufacturer/shipper and end-user/customer on-time delivery of
product by the service provider selected.
These measurements are used in carrier selection and negotiation purposes by both
the shipper, customer and service provider and being based on actual service
standards set forth by the carriers.
It is important to understand what on-time performance means and to what detail
you are likely to consider to drill down to capture the data provided.
Service providers capture all kinds of data, from delay's, damages, appointments,
weather conditions, line haul failures and so on.
To develop a clear and concise on time measurement program, a shipper needs to
determine what data collection is needed to provide an organization good
measurable clean information in order to provide a benchmark.
Keeping it as simple as possible and clearly measurable is key to both the
organization and the service provider. This information should be shared on a
regular basis with both the organization and service provider in order to
understand what on-time performance means and how the data can be used to
benefit the customer.
Remember, if you start this program continue with this program and utilize the
data directly from the carrier and keep it formatted and updated for future
negotiation and service issues/challenges.
David J. DiSanto
DiSanto & Associates
Consulting in Supply Chain
Analysis & Optimization