What are the best ways to evaluate the performance of your international logistics service providers?

1 Set clear and realistic goals

Before you can evaluate your international logistics service providers, you need to have a clear and realistic idea of what you expect from them. You should define your goals and objectives in terms of relevant, measurable, and achievable key performance indicators (KPIs). Delivery time, accuracy, cost, flexibility, and visibility are all important KPIs to consider when assessing international logistics. It's essential to communicate your goals and KPIs to your logistics providers and agree on the methods and frequency of reporting and feedback. This will help ensure that your shipments arrive on time, in full, in good condition, and with the necessary information about their status and location.

2 Track and monitor performance data

Once you have established your goals and KPIs, it's important to track and monitor the performance data of your international logistics service providers. You can use various tools and systems to collect, analyze, and visualize the data, such as logistics management software, dashboards and scorecards, and surveys and feedback. Logistics management software is a great way to integrate with your inventory, order, finance, and other systems to provide real-time data and insights on your performance. Dashboards and scorecards are visual tools that display key metrics in an intuitive way. Surveys and feedback can help you understand the strengths and weaknesses of your logistics providers. You should review the performance data regularly and share it with relevant parties to identify gaps and opportunities for improvement.

3 Benchmark and compare performance

Evaluating your international logistics service providers can be done by benchmarking and comparing their performance to other providers or industry standards. This can help you assess the competitiveness and efficiency of your logistics partners, as well as identify how they can improve their services. You can utilize various sources and methods to benchmark and compare performance, such as industry reports and publications which provide information on the trends, best practices, and benchmarks of the international logistics industry. Additionally, peer groups and networks of other importers/exporters or logistics professionals can be utilized to exchange information, ideas, and insights on your logistics performance. Lastly, audits and assessments are processes of evaluating and verifying the quality, compliance, and performance of your logistics providers. It is important to benchmark and compare your performance periodically to negotiate or renegotiate your contracts and service level agreements with your logistics providers.

4 Collaborate and communicate with your providers

The most important way to evaluate your international logistics service providers is to collaborate and communicate with them regularly and effectively, treating them as strategic allies rather than vendors or suppliers. You should share your goals, expectations, and feedback with them, while also listening to their suggestions, concerns, and feedback. Involve your logistics providers in your planning, decision-making, and problem-solving processes, recognizing and rewarding their achievements and contributions. Address any conflicts or disputes in a constructive and respectful way. Additionally, seek continuous improvement and innovation in your logistics operations by encouraging your logistics providers to do the same. Ultimately, you should foster a culture of trust, transparency, and teamwork with your logistics providers for long-term and mutually beneficial relationships.

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?