On-time Carrier Performance

A Hot Tip about Logistics in the United States

Posted on: 1 Mar 2012

Measuring monthly on-time carrier delivery and performance

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. Regards, David J. DiSanto DiSanto & Associates Consulting in Supply Chain Analysis & Optimization T. 781-272-0297  F. 781-272-0490 www.disantoandassociates.com
Posted: 01 March 2012

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