Recently, a client of ours faced a dilemma.
Each time one of their suppliers received a customer order they would send back a carrier tracking code within five minutes, showing that the item had been shipped.
While our client knew this was a nearly impossible turnaround time, there was no way for them to make sure that the supplier had not in fact shipped the order.
The problem was that their metrics were off.
They were asking their supplier for a short average time-to-ship but were in fact measuring shipping code creation times. This incentivised their supplier to create shipping codes as soon as possible in order to meet compliance requirements and avoid penalties.
By giving our client real carrier acknowledgment data from our integration with Shippo, we were able to solve this problem and facilitate a good discussion between them and their supplier.
Their dilemma, however, raises the issue of proper metrics for measuring partnership performance and insuring that the customer experience is not impacted by cancelled, late, or inaccurate shipments.
To shed some light on this I’ll discuss the five most important metrics that we at Dsco use to rate supplier performance.