On-time performance has always been a key performance indicator for the transportation departments. They would keep a carrier score card that would be reviewed every quarter. This is why ocean, as well as air carriers, are measured through their on-time, as well as air carriers, f rail carriers, these are measured as scheduled departures. The motor carriers are measured by the type of service types. Typically companies do not look at the performance of any kind of multi-mode shipments. Edisoft states that the best practice KPIs have to extend across all aspects of the supply chain that would include physical, financial, as well as regulatory aspects.
Today a lot of data is available to shippers. This is due to the rapid evolution of technology in terms of real-time tracking, GPS datasets, besides the IOT, and mobile solutions enabling the global trading partners. Hence there is no need to define carrier performance in a narrow way anymore. Edisoft claims that an on-time performance of 99.5 percent for a carrier may be considered as excellent. But the fact may be that it is based on data covering only 70% of its entire shipments. There may be many important aspects that may have been missed out here. This can include inefficient coordination with the downstream trading partners leading to inefficient customs clearance or issues in inland movements or even in the final mile arrangements. Next will be the timely report deliveries of parcel and motor carriers. Edisoft claims that all this impacts the customer satisfaction scores eventually leading to revenue earned.
Not only this, Edisoft maintains that carriers may over-charge based on the contractual rates. It needs to be seen if they are honoring the minimum quantity commitment. This is because optimization of allocated free time is important. The detention as well as demurrage costs must be within the estimates (YouTube). Hence Edisoft proposes using dataset that can give enough insight in order to create such KPI’s. This is because linking huge data together cannot be done manually. It needs to be automated in order to be able to provide information that can help to enhance efficiency.