- How to calculate the performance score for each carrier
From the first table, go to the particular carrier, say Allied Transport, and pick the value of the performance criteria.
In our case, the performance criteria are: on-time delivery, load with damage claims, customer satisfaction rating, billing accuracy and load rejects. Then go to the second table and find the exact weight factor for each of the criterion sections.
The values on the table are as follows:
- On-time delivery – 30
- Load with damage claims – 30
- Customer satisfaction rating – 20
- Billing accuracy – 10
- Load rejects – 10
Compare the value on the first table under each carrier with the respective percentage value under which it lies on the second table under the performance evaluation column. For example,
For the Allied Transport carrier;
On time delivery is 99.5% and on table 2, the performance evaluation for that percentage value lies under >98.5%=5
Take the value 5 and multiply it with the weight factor for on-time delivery on table 2, which is 30, that is;
The performance score for allied transport carrier based on the on-time delivery criteria is 150.
Repeat the same procedure for all the criteria, as well as with all the carriers.
- I would recommend that Bob eliminates the Bestway Freight Carrier because it has the worst cumulative performance score given all the available performance criteria.
- For Allied Transport, Bob should work to improve the load with damage claims and load rejects. For Bestway Freight, Bob should work to improve the load with damage claims and load rejects as well. Finally with Certain carriers, Bob should work to improve the customer satisfaction rate.