How can you manage carrier relationships to ensure reliable transportation performance metrics?

2 Carrier communication

The second step to manage carrier relationships is to establish clear and consistent communication channels with your carriers. You should communicate your transportation requirements, expectations, and feedback to your carriers regularly and proactively. You should also use technology tools, such as transportation management systems (TMS), to facilitate data sharing, tracking, and reporting between you and your carriers. Moreover, you should foster a collaborative and respectful relationship with your carriers, as they are your partners in delivering value to your customers.

3 Carrier evaluation

The third step to manage carrier relationships is to evaluate your carriers' performance based on the transportation metrics that matter to you. You should define and measure key performance indicators (KPIs), such as on-time delivery, transit time, damage rate, billing accuracy, and customer satisfaction, to assess how well your carriers are meeting your expectations and standards. You should also benchmark your carriers against industry best practices and competitors to identify gaps and opportunities for improvement.

4 Carrier improvement

The fourth step to manage carrier relationships is to implement improvement actions based on the results of your carrier evaluation. You should provide constructive feedback, recognition, and incentives to your carriers to motivate them to improve their performance and quality. You should also collaborate with your carriers to identify root causes of issues, develop corrective and preventive actions, and monitor the outcomes of these actions. Furthermore, you should review and update your contracts, rates, and service levels with your carriers periodically to reflect changing market conditions and customer demands.

5 Carrier innovation

The fifth step to manage carrier relationships is to encourage and support your carriers to innovate their transportation processes and solutions. You should explore new technologies, methods, and practices that can enhance your transportation performance metrics, such as automation, optimization, sustainability, and resilience. You should also solicit and implement suggestions and ideas from your carriers to improve your transportation operations and customer service. Additionally, you should invest in training, education, and development programs for your carriers to help them upgrade their skills and capabilities.

6 Carrier retention

The sixth step to manage carrier relationships is to retain your high-performing and loyal carriers for long-term success. You should build trust and loyalty with your carriers by honoring your commitments, paying on time, resolving disputes fairly, and providing support and assistance when needed. You should also seek feedback from your carriers on how to improve your relationship and collaboration. Moreover, you should celebrate and share your achievements and milestones with your carriers to acknowledge their contribution and value.