Transportation Network Optimization 06

Some companies ๐˜ฉ๐˜ข๐˜ท๐˜ฆ carrier scorecards. Far fewer are ๐˜ข๐˜ค๐˜ต๐˜ถ๐˜ข๐˜ญ๐˜ญ๐˜บ ๐˜ถ๐˜ด๐˜ช๐˜ฏ๐˜จ them to drive better outcomes.

๐“๐ก๐ž ๐ฉ๐ซ๐จ๐›๐ฅ๐ž๐ฆ ๐ฎ๐ฌ๐ฎ๐š๐ฅ๐ฅ๐ฒ ๐ข๐ฌ๐งโ€™๐ญ ๐ญ๐ก๐ž ๐๐š๐ญ๐š. Itโ€™s alignment across the different organizations within the business.

If the chosen KPIs and weightings donโ€™t reflect what the business truly cares about, the scorecard is just ๐š๐ง๐จ๐ญ๐ก๐ž๐ซ ๐ฎ๐ฌ๐ž๐ฅ๐ž๐ฌ๐ฌ ๐ซ๐ž๐ฉ๐จ๐ซ๐ญ; noise instead of ๐š๐œ๐ญ๐ข๐จ๐ง๐š๐›๐ฅ๐ž ๐ข๐ง๐ฌ๐ข๐ ๐ก๐ญ๐ฌ.

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 theyโ€™re built around intent. I custom-build my client's scorecards asking questions such as:

๐Ÿ’ก What matters most to this business?
๐Ÿ’ก What, within their logistics network, causes the most headaches?
๐Ÿ’ก 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, ๐’–๐’”๐’Š๐’๐’ˆ ๐’‡๐’‚๐’„๐’•๐’” ๐’‚๐’๐’… ๐’…๐’‚๐’•๐’‚ ๐’•๐’ ๐’Ž๐’‚๐’Œ๐’† ๐’ˆ๐’๐’๐’… ๐’ƒ๐’–๐’”๐’Š๐’๐’†๐’”๐’” ๐’…๐’†๐’„๐’Š๐’”๐’Š๐’๐’๐’”.

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Transportation Network Optimization 05