There are several ways you can analyze the performance of your carriers and 3PLs, and use that information for good. The right metrics and Key Performance Indicators (KPIs) will ensure you’re getting the level of service you’re paying for by identifying hidden inefficiencies that may be hurting service, as well as costing your company time and money.
One of the leading trends in the shipping industry is the Smart Load Board. This technology matches shippers and carriers with the right loads in ‘intelligent’ ways by utilizing machine learning algorithms and data analytics. With centralized access to expansive logistics networks, shippers and carriers can leverage these freight and capacity finding solutions in ways that automatically identify the most fitting logistics partners for their situation.
In an ideal world, every one of a shipper’s loads would all be the same weight, have the same pickup times each day, and be between a very limited number of origin and destination pairs. Carriers love transporting this type of freight because it’s predictable. “Regular” lanes give carriers the ability to plan better, and as a result, earn consistent revenue and better manage their equipment and driver resources.
Ultimately this helps them manage their costs better, which can then lead to lower rates for their customers, too. Regular lanes also increase a carrier’s familiarity with the locations and products, which introduces more efficiency and better service to the entire logistics process.