How To Evaluate Freight Forwarding Performance

Many of the OTD reports from carriers you get are bologna. Most brands take them at face value and suffer later. Here are a list of questions to help you get a better picture. 1 - How do you define an "on-time" delivery? Is it based on delivery by end of day, within a time window, or within a promised transit time? 2 - Are weekends or holidays included or excluded in your OTD calculation? 3 - What percentage of shipments were marked as “exceptions” (e.g., weather delays, incorrect addresses)? 4 - Are exceptions excluded from the OTD calculation, and can you provide the raw data for those shipments? 5 - How do you determine when to classify a shipment as an exception, and are these consistently applied? 6 - Can you provide OTD performance data broken down by first-mile, linehaul, and last-mile segments? 7 - How many scan events are typically recorded per package? 8 - Can you provide OTD performance data broken down by zones? 9 - How do you report lost or undeliverable shipments in your OTD metrics? 10 - Are lost packages included in the final OTD calculation, and can you provide the loss rate? 11 - How does your OTD performance differ for larger or heavier packages? 12 - How does your performance vary when partnering with regional carriers or for multi-carrier handoffs? 13 - Can you provide a breakdown of the most common causes for claims on late deliveries? 14 - How do customer complaints or NPS/CSAT scores align with your OTD performance data? 15 - How often is your OTD data updated and reported to clients? These are just a few to get the creative juices flowing. If you care about pricing only Then perhaps these questions wont matter. The narrative will eventually go back to delivery performance. Use these to help build a better relationship muscle with your carriers. #ecommerce #logistics

Most logistics consultants skip this step when optimizing small parcel services. It's the reason your ops are stuck at 80% efficiency.👇 Here's the truth: data is king in logistics optimization. But not just any data. The right data. The step most consultants miss? Comprehensive carrier performance analysis. They focus on rates, but ignore: - Actual transit times vs. promised - Damage rates by route and carrier - Exception handling efficiency - Claims resolution speed Without this intel, you're flying blind. Your optimization efforts hit a ceiling. You can't improve what you don't measure. How to fix it: 1. Implement detailed tracking for every shipment 2. Analyze patterns over 3-6 months 3. Identify weak points in your carrier mix 4. Negotiate based on real performance, not just rates 5. Continuously monitor and adjust Result? Happier customers, lower costs, smoother operations. The difference between good and great logistics is hidden in the details most overlook. Master these details, and watch your logistics transform. Optimize smarter, not harder. #LogisticsOptimization #DataDriven #CarrierPerformance #EfficiencyBoost #SupplyChainManagement #ParcelDelivery #OperationalExcellence #PerformanceAnalysis #ShipmentTracking #ContinuousImprovement

🚛 📊 Carrier scorecards are the cornerstone of measuring and improving transportation performance. They provide shippers and brokers with the data they need to make informed decisions about carrier partnerships and ensure reliable service. A Carrier Scorecard evaluates a carrier's performance based on key metrics such as On-Time Delivery (OTD), On-Time Invoicing (OTI), responsiveness, and claims ratios. This data helps freight brokers and shippers assess how well their carriers are meeting expectations, identify areas for improvement, and make decisions on which carriers to work with. How scorecards help brokers: 1. Build Trust: Clear, measurable data fosters transparency, helping brokers, shippers, and carriers build trust and strengthen their relationships. Sharing performance data allows carriers to see where they’re excelling and where they need to improve, which drives better performance on both sides. 2. Optimize Cost vs. Service: Brokerages often have to balance cost constraints with service expectations. Carrier scorecards help brokers evaluate whether it’s worth spending a little extra to work with a high-performing carrier who consistently meets deadlines or if they need to address poor performance to avoid delays. 3. Increase ROI: By identifying top-performing carriers, brokers can direct more loads their way, maximizing efficiency and reducing disruptions. When brokers have accurate performance data, they can make smarter decisions about who to partner with—ultimately leading to better service and greater profitability. 4. Gain Visibility: The deeper insights provided by carrier scorecards allow brokers to understand their supply chain’s weak spots. They can identify where delays or inefficiencies are occurring—whether it's on-time delivery issues, poor communication, or tender rejections—and take action to correct them. Current Challenges with Carrier Scorecards While carrier scorecards can unlock tremendous value, they are not without their challenges. The process is often manual, time-consuming, and prone to inconsistency. Here are some common pitfalls: 1. Data Silos: Freight brokers often work with multiple systems and spreadsheets to gather carrier data, leading to incomplete or inconsistent information. This fragmented data can make it difficult to accurately assess carrier performance. 2. Inconsistent Criteria: Scorecard criteria can vary from carrier to carrier, and shipper to shipper, which makes it hard to maintain a standardized process across the board. This can also make it challenging for brokers to compare performance consistently. 3. Limited Automation: Many brokers still rely on manual processes to track and calculate scorecard metrics, which can lead to delays in data reporting and slower decision-making. What changes do you want to see in scorecards?👇