The Challenge
In today’s supply chain, many companies struggle to manage and measure carrier performance. The current scorecarding process is disjointed and reactive, resulting in wasted resources and fragmented relationships.
A leading beverage manufacturer had an outdated, manual process for measuring carrier performance. Critical data was logged in hundreds of spreadsheets and distributed across multiple stakeholders. Their process for retrieving and acting on this data had become extremely time-consuming and error-prone, leading to internal productivity loss and poor decision-making. On carrier management and scorecarding alone, the company had 12 full-time employees working 8 hours per week (roughly 5,000 hours/year), eating up valuable resources that could be spent elsewhere.
Due to the volume of inaccurate data, they found it difficult to make timely procurement decisions, identify responsible parties for service failures, and improve overall performance within their carrier network.
This shipper struggled to measure its holistic transportation performance due to challenges with data reconciliation. One procurement analyst reported they were spending nearly 50% of their job managing data collection and distribution. Critical performance data was stored in multiple systems (ERP, TMS, etc) and there wasn’t a simple way to connect everything together into a cohesive narrative.
“Before [ISO], we were unable to efficiently cleanse our data. We left ourselves open to gamification from the carrier base. So carriers weren’t always properly held accountable for poor performance. A 3-5% delta on performance means you potentially have 30,000-50,000 shipments that have issues that aren’t properly being root caused and fixed.” – Senior Procurement Manager, Enterprise Beverage Manufacturer