Question

What are the different types of performance metrics used to measure transportation providers? Could this same list be used for a third party logistics provider? Why or Why not?

Answer 1

There are different kinds of performance metrics, which are used by the transportation providers to measure the performance. These performance metrics can be included in terms of total cost, speed, reliability, capability and accessibility. Each transportation provider wants to reduce the total cost of its transportation, which can maximize their profit. In addition, the transportation providers also want to get better speed, reliable and capable transportation services, so the goods and material of the company can be transported in time. In addition, the same list of performance metrics could be used for a third-party logistics provider, because they also want to give superior services to their clients (Monczka, Handfield, Giunipero & Patterson, 2015). Thus, it can be said that a third-party logistics provider would also measure the performance on the basis of total cost, speed, reliability, capability and accessibility.