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Looking for Productivity- Measure Perfect Shipment Performance
July 17, 2008
Shippers/3PLs need to begin measuring themselves against the "Perfect Shipment" if they want to identify opportunities for improving their productivity. While there are a lot of elements that could be measured, most shippers don't track and record 'all' of the process tasks...nevertheless a good start would be to measure the compound percentage of the following elements for all shipment for a month:
* Tender data sent/accepted by shipper's first choice carrier without date and time changes.
* Tender was sent completely - no calls from carriers seeking additional information.
* Shipment was not turned back to shipper after it was intially accepted by the carrier
* Shipment was picked up on correct date/time
* Shipment was delivered on correct date/time
* 3PL/carrier received mapyment for shipment on date specified in contract
* 3PL/carrier was paid correctly the first time - no balance dues
If we assume that every element was done correctly 97% of the time, then the compound performance percentage for the seven elements is barely over 80%.....Not very good!
Determine where the biggest challenge is for you and your carriers and begin chipping away at it...No one wants to work with companies that cost them time and money!
Posted by John A. Gentle on July 17, 2008 | Comments (2)
Reader Comments
at 3/3/2009 1:09:25 PM, Jeff D commented:
In conjunction with the perfect shipment, measuring the perfect order must also be considered. If all items listed meet standard, yet the order was short or had wrong items shipped, then even if the carrier does perform everything as required, you will still have an unhappy customer.
at 3/4/2009 1:10:26 PM, GTM Best Practices commented:
"While there are a lot of elements that could be measured, most shippers don't track and record 'all' of the process tasks..." Plus tracking and recording all of the process tasks can be overwhelming!