Logistics Service Provider – Rating System Criteria and Definitions

Rating Criteria


Rates

Let’s cut to the chase, the key criteria for selecting any service provider will normally be based on cost. The lowest cost supplier will not always be chosen but one thing for sure it will never be the most expensive. This is true regardless of how reliable or responsive the supplier has been or the strength of any existing relationship.

** When evaluating rates you are making a judgement based whether you are satisfied with the rates that  you are currently paying for the services that are being supplied. What you are paying might be lower or higher than what is available in the marketplace but this rating is based on the service provider meeting the expectations you had when the rates were agreed.

Reliability

Reliability is about the service provider being able to consistently meet the service level expectations of the customer. The expectations may have been set by the customer or may simply be what the service provider commits to as part of their normal service offering. Either way the expectation is that they will keep their promise.

** When evaluating reliability you are making a judgement on whether  the service provider consistently meets the agreed level of service that you expect or that they have committed to meet. 

Responsiveness

It’s inevitable that our logistics service providers will not always meet our expectations, the key is what they do when the proverbial hits the fan. What do they do to get things back on track? When and how do they communicate the issue and the plan to fix the problem? A responsive service provider is one that can also quickly and proactively react to the needs of the business as and when requested, even if the need is outside of the normal scope of services for which they are responsible.

** When evaluating responsiveness you are making a judgement on how well and how quickly the service provider is able to correct a service level failure or how well and how quickly they react when a special request is made.

Relationship Management

Assuming the rates are competitive, the service provider is reliable and responsive then the development of a strong working relationship with the service provider will be paramount. The rapport that is developed with key stakeholders within the business and the process of management that is implemented will be key success factors of the partnership.

** When evaluating relationship management you are making a judgement on how well the service provider manages the customer / supplier relationship. Is there adequate resources assigned, is there a good rapport, do you feel like they value and understand your business?? 


Rating Definitions

1 Star – Never Meets Expectations

2 Stars – Sometimes Meets Expectations

3 Stars – Meets Expectations

4 Stars – Sometimes Exceed Expectations

5 Stars – Consistently Exceeds Expectations

 

Leave a Reply