Pellegrino Individual 6
Christina Pellegrino
MBA 677
Assignment 6.3 Bob’s Custom BBQs
1. Calculate the performance score for each of the three carriers.
Performance Criteria
Allied Transport
Actual Score
Best Freight
Actual Score
Certaint Carriers
Actual Score
On-time delivery
99.5%
40
98.7%
40
98.2%
32
Billing accuracy
99.3%
15
99.6%
15
98.2%
9
Loads with damaged claims
0.9%
20
1.6%
10
0.4%
25
Loads rejected
1.3%
8
2.1%
4
0.9%
10
Customer satisfaction ratings
4.6%
10
4.2%
8
3.9%
4
Total Score 93 77 80
2. Which carrier would you recommend that Bob consider for elimination? Why? I would recommend that Bob consider eliminating Best Freight (BF) as a carrier. While BF performed higher than Certaint Carriers (CC) in on-time delivery and billing accuracy, BF fell behind for loads rejected and loads with damaged claims. These two key performance indicators (KPIs) are two of the three measures of service quality. Service quality means doing things right, the first time (Coyle, et al. p. 430), and are key to the success of supply chains. I believe BF’s customer satisfaction rating will begin to drop unless these KPIs improve.
3. If Bob decides to keep all three carriers, what should each of them work to improve? Allied Transport (AT) provided the best service out of the three carriers. The main improvement area for AT is loads with damaged claims. AT may want to take a bit more time ensuring that the load is property secured, and that their drivers are taking driving precautions. On-time delivery may be coming at a cost of damaged goods; which can eventually affect the amount of loads rejected, and customer satisfaction ratings. As discussed previously, BF must improve loads rejected and loads with damaged claims. The ultimate service quality is the execution of perfect deliveries (Coyle, et al. p. 431). Until these two scores are improved, BF cannot be recommended as the primary carrier. CC received perfect scores for loads rejected and loads with damaged claims,
MBA 677
Assignment 6.3 Bob’s Custom BBQs
1. Calculate the performance score for each of the three carriers.
Performance Criteria
Allied Transport
Actual Score
Best Freight
Actual Score
Certaint Carriers
Actual Score
On-time delivery
99.5%
40
98.7%
40
98.2%
32
Billing accuracy
99.3%
15
99.6%
15
98.2%
9
Loads with damaged claims
0.9%
20
1.6%
10
0.4%
25
Loads rejected
1.3%
8
2.1%
4
0.9%
10
Customer satisfaction ratings
4.6%
10
4.2%
8
3.9%
4
Total Score 93 77 80
2. Which carrier would you recommend that Bob consider for elimination? Why? I would recommend that Bob consider eliminating Best Freight (BF) as a carrier. While BF performed higher than Certaint Carriers (CC) in on-time delivery and billing accuracy, BF fell behind for loads rejected and loads with damaged claims. These two key performance indicators (KPIs) are two of the three measures of service quality. Service quality means doing things right, the first time (Coyle, et al. p. 430), and are key to the success of supply chains. I believe BF’s customer satisfaction rating will begin to drop unless these KPIs improve.
3. If Bob decides to keep all three carriers, what should each of them work to improve? Allied Transport (AT) provided the best service out of the three carriers. The main improvement area for AT is loads with damaged claims. AT may want to take a bit more time ensuring that the load is property secured, and that their drivers are taking driving precautions. On-time delivery may be coming at a cost of damaged goods; which can eventually affect the amount of loads rejected, and customer satisfaction ratings. As discussed previously, BF must improve loads rejected and loads with damaged claims. The ultimate service quality is the execution of perfect deliveries (Coyle, et al. p. 431). Until these two scores are improved, BF cannot be recommended as the primary carrier. CC received perfect scores for loads rejected and loads with damaged claims,