At one time, supply chain performance was measured simply on the basis of its on-time delivery. But Edisoft maintains that this cannot be considered as the key performance indicator anymore for the transportation departments. This is because visibility solutions are not enough to review an ocean carrier or an air carrier or even a rail or motor carrier. In fact, the performance of the multimode shipments needs to be considered today. Hence the performances have to extend much beyond the physical or financial, or even the regulatory aspects of any supply chain.
It is possible to measure all this today as a lot of data is available to the shippers. This is a result of the advent of real-time tracking that can be done through GPS datasets (http://www.edisoft.com/careers-edisoft-unparalleled-edi-solutions.php). Next is the advent of the IoT besides the global trading partners making use of technology in the form of mobile solutions.
This is why Edisoft is surprised to find many companies still defining carrier performance through very few parameters. A carrier’s performance cannot be measured on limited data. Besides, the effectiveness of the carrier has to be measured based on its working with the downstream trading partners that enabled customs clearance. Also, the inland movements, as well as the final mile arrangements, need to be considered here in order for carriers to be considered for their efficiency.
Edisoft would like to incorporate the timely deliveries of reports by the parcel and motor carriers as another measure of their efficiency. All this is important as it impacts customer satisfaction scores in a holistic way. This leads to recognition followed by sales and revenue for the company.
Edisoft would like companies to know if they are being overcharged by the carriers based on the contractual rates. This may mean that the ocean carriers are not fulfilling the minimum quantity commitment. Besides, they need to optimize their allocated free time. Another key area is the payment of detention and demurrage costs that may be much more than estimated. This would also have to be looked into. Hence Edisoft proposes a dataset that can give enough insight which can create such KPI’s.
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