Transportation Network Optimization 06
Some companies ๐ฉ๐ข๐ท๐ฆ carrier scorecards. Far fewer are ๐ข๐ค๐ต๐ถ๐ข๐ญ๐ญ๐บ ๐ถ๐ด๐ช๐ฏ๐จ them to drive better outcomes.
๐๐ก๐ ๐ฉ๐ซ๐จ๐๐ฅ๐๐ฆ ๐ฎ๐ฌ๐ฎ๐๐ฅ๐ฅ๐ฒ ๐ข๐ฌ๐งโ๐ญ ๐ญ๐ก๐ ๐๐๐ญ๐. Itโs alignment across the different organizations within the business.
If the chosen KPIs and weightings donโt reflect what the business truly cares about, the scorecard is just ๐๐ง๐จ๐ญ๐ก๐๐ซ ๐ฎ๐ฌ๐๐ฅ๐๐ฌ๐ฌ ๐ซ๐๐ฉ๐จ๐ซ๐ญ; noise instead of ๐๐๐ญ๐ข๐จ๐ง๐๐๐ฅ๐ ๐ข๐ง๐ฌ๐ข๐ ๐ก๐ญ๐ฌ.
For example, a business that manufactures fragile, high-value freight may assign a higher weighting to freight damage than a distributor that ships low-cost consumables.
Carrier scorecards work best when theyโre built around intent. I custom-build my client's scorecards asking questions such as:
๐ก What matters most to this business?
๐ก What, within their logistics network, causes the most headaches?
๐ก What carrier attributes are most valuable to this business?
You use a carrier scorecard to drive the desired behaviors out of your carriers, rewarding those that score higher and. . . you know what happens to the ones that don't perform.
When scorecards are designed that way, they stop being a reporting exercise and start driving real decisions, lane by lane, carrier by carrier.
As I always say, ๐๐๐๐๐ ๐๐๐๐๐ ๐๐๐
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๐๐๐ ๐๐ ๐๐๐๐ ๐๐๐๐
๐๐๐๐๐๐๐๐ ๐
๐๐๐๐๐๐๐๐.