3 Ways to Better Manage Your Carriers.

Shippers have traditionally relied on a mix of annual carrier tenders and monthly or even quarterly KPI reviews to manage carriers. These processes are typically based on manually compiled data using XLS spreadsheets, with different data sources complied by and for different stakeholders.

This approach is not only time consuming and inefficient but leaves supply chain teams with rather static carrier allocation setup, less agility and lack of structured, reliable data that could be the basis of digitalization initiatives like much hyped AI.

Let’s look at 3 ways to improve fundamentals of carrier management:

1. Connect carriers on a shared shipment workflow – integrate upstream systems like ERP, WMS, OMS and downstream carriers on a single, automated workflow from planning, execution to billing for end-to-end process digitalization.
2. Collect standardized data and share dashboards for frequent reviews – with a shared workflow between you and your carriers you look at the same data, same definition of events, milestones and exceptions that are collected in real time. It enables you to move from infrequent MBRs or QBRs to frequent, ad-hoc performance reviews and take actions much faster.
3. Be more agile with carrier allocations – with this in place, you can do micro-adjustments of allocations among carriers based on their relative performance to motivate and reward them to perform better.

Smaller shippers that outsource warehousing & distribution to a single 3PL in a given territory should require their 3PL to continuously improve their digital capabilities.

Larger shippers that work with multiple carriers need their own digital transport platform to ensure sustainable transport network and effective relationship management with carriers. Looking ahead at future trends like ESG, AI, autonomous driving, the alternative is to be left behind.

Contact us at oTMS to learn more. We offer process mapping workshops for selected customers to identify issues, opportunities and potential impact of transport digitalization.

Contributed by: Mirek Dabrowski, CEO and Co-founder of oTMS (openTrans Technology Co., Ltd.)