Build Stronger Carrier Relationships Using KPIs

Do your carriers have a vested interest in complying with the stipulations and service demands outlined in your agreements?

A lack of carrier compliance can render even the most competitive base rates significantly less effectual. It may seem as though requiring carriers to tie into your own logistics network on a deeper level and respond to issues by certain dates might not be the best way to forge good partnerships, but if you go about requiring carriers to comply in the right way, you can actually make your partnerships with them stronger.

BridgeNet recommends using key performance indicators (KPIs) to require a carrier to research charges that were assessed incorrectly or that were carrier-caused. Using KPIs, you can ensure that your carriers will resolve issues within an agreed upon time frame or face certain consequences.

If carriers can base your rates, discounts, and incentives on your volume and other unique characteristics of your company, you should be able to base the promise of your business on the ability of your carriers to comply with the terms outlined in your agreements. KPIs simply ensure that invoicing errors and service issues are addressed in the manner your carriers promised you they would be addressed. When you show your carriers that you are taking greater control of your supply chain by monitoring all costs and sources of inefficiency, you can communicate with them on a deeper level. When you raise the bar, it is much easier to ask your carriers to do the same.

Develop your KPIs independently and then present them to your carriers for further review. Have an honest discussion about wants, needs, and expectations. When parties come together to determine what will work best at both ends, everyone benefits. KPIs lay out all cards on the table for everyone to see. They help you develop a truly transparent supply chain and give you more opportunities to work with your carriers to create new cost-saving solutions.

If you’re not currently using Xonar, BridgeNet’s Web-based dashboard that allows for custom KPIs to be input, monitored, and managed, contact us for a free, no-obligation consultation. When a company is ready to develop and implement a KPI system, time is usually of the essence. Our team will be happy to show you how we can take guesswork out of the process and help you start achieving greater supply chain savings today.