Everything You Need To Know About Multi Carrier Management Services


When it comes to reviewing the performance and billing of carriers, logistics operations in the past mostly relied on manual uploading of excel spreadsheets, paper files, printed reports, and carbon copies. How companies manage these files, gather data and assess the performance of carriers has been transformed by technology. A performance audit of the shipper’s carriers is one of the most important audits that can be done.

Every carrier impacts your capacity to serve clients, regardless of whether you employ parcel shipments, LTL, multimodal, intermodal, or FTL. It’s crucial to keep service quality at a level that meets customer expectations. You must implement efficient systems to expand your business and improve carrier management. This article outlines everything you need to know about carrier management and its associated services. 

What Is Carrier Management?

Carrier management is a function of the transportation carrier that utilizes carrier assessments, deal and rate management, and claims management to assist companies in monitoring and controlling service operations. It enhances carrier cooperation, offers insight through information, and supports critical corporate decision-making. Carrier management helps enterprises to keep an eye on and control carrier performance. Modern carrier management relies on software that fosters supply chain visibility through analytics, helps crucial decision-making, and enhances carrier collaboration.

Carrier Management System:

The purpose of a transport management system is to implement, monitor, and analyze service standards and commonly used shippers’ KPIs. A component of the overall transportation management system (TMS) architecture is carrier management software. A carrier management software integrated with a TMS gives shippers instant rate estimates from several carriers and real-time awareness of carrier service. The carrier management system uses these technologies to manage equipment utilization, fuel price fluctuations, changing federal rules, and client expectations. An effective carrier management system for shippers:

  • Enables users to manage carrier performance and compare it to commitments.
  • Monitors each shipment against delivery commitments, followed by performance reporting.
  • Enables customers to control every aspect of the shipping process, including order administration, carrier selection, tracking, and financial settlement and reporting.

Carrier Performance Indicators:

These tools give them a strategic edge by ensuring the shipper selects the right carrier management for the project. Modern and optimized CMS can review carriers’ key performance indicators (KPIs).

Carrier Performance:

Some performance indicators are crucial when hiring a carrier to deliver goods to a customer. The most crucial performance indicator is making sure the delivery arrives on schedule.

The consumer and the carrier provide input to the CMS regarding on-road performance. The data is then compared to guarantee consistency. You may be notified via email or other personalized communication settings if inconsistencies are discovered. This enables you to follow up with the customer accurately.

Shipping Delays:

Many carriers utilize GPS tracking to provide shippers with real-time updates on the status of their deliveries. The CMS collects and analyzes this information to determine whether traffic, bad weather, or driver constraints contributed to delivery delays. If the data in your CMS and the information provided do not match, this raises a red signal and has to be looked into further.

Auditing Freight Bills:

Accurate billing is one of the most important carrier performance measures. Each carrier is given a set of unique, negotiated contracts that cover delivery costs, fuel surcharges, and other items. The carrier management software notifies you if an invoice’s information is incorrect. You can use this alert to check if there is a mistake or a purposeful change that caused the issue.

Importance Of Carrier Management:

The scalability of your transportation spend management program must be evaluated to meet the expanding demands of your company. Carrier management software provides this crucial function for businesses that have expanded beyond the need for merely freight audit and payment (FAP) solutions and require more for their wider range of activities. Three essential facets of carrier management give your company more efficiency and tremendous cost-saving potential.

Carrier Scorecards:

A carrier scorecard is a tool that aids in deconstructing the qualitative and quantitative characteristics of carriers to assess performance using specified KPIs. Carriers are evaluated monthly, quarterly, or annual using the KPIs your organization chooses to match your business objectives. On-time pick-up and delivery, invoice accuracy, and data quality are a few examples of KPIs. Gaining visibility into processes benefits you and your carriers. Thus, insights from carrier scorecards can help you develop great connections with them.

Contract Management:

Contract compliance is another key component of comprehensive carrier management. To better control your transportation costs, contract management enables you to streamline workflows and guarantee contract adherence. Your invoices must follow the terms of your contract because paying fees and other charges that don’t comply with your agreement is a waste of money. 

Customizing your carrier management solution is essential because every business has different transportation logistics needs. For instance, you might discuss with clients the connections you want to make with shippers to improve customer satisfaction, increase performance, and reduce costs and risks.

Claims Management:

More often than not, organizations undervalue the importance of processing and resolving claims. To ensure that your consumers have a positive experience, you must handle complaints and claims effectively. As an illustration, in the interest of providing excellent customer service, your business might supply a product that a customer ordered but never received. 

However, that still leaves your business with the laborious claim settlement process: locating the shipment notification, bill, or other papers to verify the issue, submitting everything for inspection, etc. Such occurrences are frequently reported as losses, resulting in higher business expenses. Consider a business that manages its transportation spending optimally. Such a business improves accuracy and eradicates errors from the verification processes.

Final Thoughts:

Systems for managing carriers can be tailored to a specific industry, business field, or transport mode. Customers can verify carriers’ progress that promotes their brands by using extensive knowledge and lessening technologies. A leading 3PL service is an ideal tool for customizing and deploying a carrier management system. However, given the ease and efficiency of multi-carrier management systems like SmartConsign, the technology is accessible by any operator in the supply chain including eCommerce businesses handling their own shipments.