Carrier management, an extension of transportation management systems (TMS), is designed to give shippers significant advantages in the industry and supply chain. While some aspects of carrier management require a more manual approach, most can be handled through a carrier management system (CMS) with the right software. Investing in good software gives businesses more access to competitive reports and predictive analyses for things like demand and fuel shortages. A proper CMS is designed to help companies navigate contract compliance to ensure carriers are meeting the expectations set in the carrier contract negotiation. As CMS platforms continue to grow, develop, and become an industry norm, it may be hard to keep up with the ever-changing trends and capabilities. In this blog, we’ll walk through the best practices for carrier management and logistics management alike.
Carrier management in transportation is essential to shippers becoming more efficient and making (or saving) more money. It provides insight, tracking, and improved access to data through carrier management services, systems, and software. It allows for more visibility, confidence, and control into a carrier’s actual costs and overall logistics through carrier scorecards, claims management, rate management, and more.
By definition, a carrier is “a person or company that undertakes the professional conveyance of goods or people.” They can do this by land, water, and air. In logistics, there are three types of carriers that manage conveyance – common, contract, and private.
Carrier performance can be tracked and evaluated in a variety of ways including contract compliance and a carrier performance scorecard.
Contract compliance is a strategy that ensures all contract parties (carrier and shipper) are meeting and matching the expectations legally set by the mutually signed contract.
Contract management software can help automate this process by tracking and monitoring the contracts created within the platform. Using software also removes the risk of human error.
Carrier performance scorecards outline how a carrier performed over a period of time. They provide a way to objectively analyze and compare carriers through KPIs. Scorecards are used to track and evaluate carrier attributes on both a qualitative and quantitative level and give businesses visibility into carrier performance beyond what a company can see at face value. Use scorecards to track delivery timeliness, invoice management, damaged shipments, billing accuracy, responsiveness, and more.
Logistics management focuses on finding effective and efficient ways to move resources or products from ideation to completion and from completion to customer. The latter half of that is where carrier management comes into play. Carrier management, specifically in regards to contract compliance and logistics transportation. The former prioritizes that the agreed upon expectations are being met, and the latter focuses on getting from point a to point b (i.e speed and fuel) in hopes of reducing cost and increasing customer happiness.
We offer a variety of solutions to your shipping needs. Our parcel invoice auditing platform is designed to automatically file claims and process refunds. Our tech-driven carrier contract negotiations are powered by data modeling and simulation that let you know your savings before you get to the negotiation table. Once a contract is signed, we will help you track and manage compliance, holding the carrier accountable, and our ongoing shipping insights and analytics offers weekly detailed reporting based on over $1B in live market data. Contact us today to see what ShipSigma can do for you.
Carrier performance scorecards track KPIs across both qualitative and quantitative dimensions, including delivery timeliness, invoice management, damaged shipments, billing accuracy, and responsiveness. These metrics give businesses visibility into carrier performance beyond what is apparent at face value.
How does contract compliance software reduce shipping errors?Contract compliance software automates the tracking and monitoring of carrier contracts, removing the risk of human error from manual oversight. It ensures both carrier and shipper are meeting the expectations set in the mutually signed agreement.
What is the difference between a common carrier and a contract carrier?A common carrier transports goods for any customer without volume contracts or specialty requirements, while a contract carrier operates under agreed terms for specific companies and provides specialized services such as delivering medical supplies or transporting gases. Private carriers represent a third type and own their transport vehicles exclusively to move their own goods.
How does a carrier management system improve cost visibility?Carrier management systems provide insight, tracking, and access to data that give shippers direct visibility into a carrier's actual costs and overall logistics. Features such as carrier scorecards, claims management, and rate management give businesses confidence and control over their shipping expenditures.
How do the 7 Rs of logistics management support on-time delivery?The 7 Rs (Right Product, Right Customer, Right Time, Right Location, Right Condition, Right Quantity, and Right Price) provide a framework for ensuring goods reach the right destination under the right conditions. CMS and TMS software support adherence to these principles by tracking truck locations, predicting delivery dates, and analyzing supply and demand patterns.