How do shippers measure carrier performance?
Shippers and manufacturers typically measure the performance of their truckload (i.e freight brokers and truck carriers) by tracking key performance indicators (KPIs) that relate to the carrier's delivery and operational performance. Here are some of the most common KPIs that shippers and manufacturers may use to evaluate their truckload carriers in the US truckload market:
On-time delivery rate: This KPI measures the percentage of shipments that are delivered on time according to the agreed-upon delivery schedule.
Transit time: This KPI tracks the time it takes for a shipment to be transported from the shipper's facility to the consignee's facility.
Claims ratio: This KPI measures the percentage of shipments that result in claims for lost, damaged, or stolen goods.
Load acceptance rate: This KPI measures the percentage of loads that a carrier accepts from the shipper.
Equipment utilization: This KPI tracks the percentage of time that a carrier's equipment is being used to transport goods.
Cost to serve: This KPI measures the overall cost of a shipper's freight spend, broken down per carrier, per lane.
By monitoring these KPIs, shippers and manufacturers can evaluate the performance of their truckload carriers and make data-driven decisions about which carriers to work with in the future.