As logistics professionals, we all know that a low rate is nothing without good service to match. A late delivery on an important shipment, or any other type of supply chain service failure, can cost far more than what the carrier or a fulfillment center’s being paid. And when problems do occur, the provider who made the mistake is still usually getting their money with no penalty for the extra cost or wasted time that their performance failure caused.
The problem is this lack of accountability undermines a lot of the incentive for logistics providers to maintain the highest level of service possible. The best supplier partnerships happen with shared responsibility for success. In other words, there should always be shared accountability for good delivery performance. On-Time-In-Full (OTIF) deliveries are in everyone’s best interest.
Performance guarantees are common in other industries, and even in parcel delivery. But none exist from asset-based 3PLs, until now. Keller Logistics has announced a new Performance Guarantee that aligns expectations for our delivery and fulfillment performance with the needs of our customers.
The goal of the guarantee is simple – it is to elevate service levels and efficiency for all of us.
So, what does the Keller Performance Guarantee look like?
On the truckload side, Keller guarantees an on-time pickup and delivery within 15-minutes of the appointment times. Those are tight windows and that level of reliability will no doubt keep your shipping dock and consignees very happy. What do you get if we miss the window? A 10 percent reduction on the line-haul rate.
Our warehouse guarantee commits to 100% order accuracy. The compensation from Keller if there’s a mistake? No charge for the outbound handling of the order. We’re committed to inventory accuracy, too. If inventory is ever unaccounted for or our reporting inaccurate, Keller will pay for the full manufacturing cost of replacement.
Yes, there are a few conditions to the guarantee, but chances are there’s nothing required that you are not already doing.
We’d appreciate the chance to talk through this industry first performance guarantee with you. We know it’s a game changer! Please visit kellerlogistics.com/guarantee/ for more information.