Today’s Data Dose: Carrier Metrics
Today’s Data Dose is an original Transfix series that helps shippers identify the key metrics they should track to get the most out of their supply chain. Which data measurements should an organization prioritize, considering their unique pain points, network, and goals?
We’ve got answers. We’ve got insights.
It’s quite simple: shippers want a product picked up and delivered on time, intact. But in the trucking industry, we all know that when the rubber meets the road, nothing is simple, and even perfectly laid plans may need adjusting.
Today’s Data Dose is Carrier Metrics. On-time delivery (OTD) and on-time pickup (OTP) metrics are a direct reflection on service and reliability. They provide shippers a more holistic view of how carriers are performing in relation to their rates. Shippers can track how effective carriers are when it comes to cost offered and final bill.
“Working with partners who have a history of high OTP/OTD provides peace of mind for a customer, because they can have a high sense of confidence that their product will be on the shelves or in the manufacturing plant when it is needed most,” said Robert Treadwell, director of revenue operations at Transfix. “In addition, many companies have adjusted their distribution centers to enforce service level agreements and more often than not, OTP / OTD are used as a basis to award freight and/or fine vendors.”
While OTP/OTD metrics generally do not account for unanticipated factors like extended detention time or weather events, it is often up to the customer relationship manager to dispute discrepancies due to force majeure.
Additionally, when shippers gain visibility into carrier performance – whether drivers are picking up and delivering on time – it allows shippers to ascertain the performance of their own facilities. Tracking OTD, OTP, and detention data simultaneously provides shippers a useful triangulated view of their networks. Otherwise, they’re relying on anecdotes and gut feelings to understand the true source of bottlenecks.
Stay tuned for our next Data Dose, #7: “Facility Metrics.” Click here to learn more about Transfix’s Intelligent Freight Platform.