Securing a trustworthy carrier base to transport your product can be a challenging task. Establishing a carrier vetting process is a key strategy in addressing this challenge — not only to protect your freight, but to preserve your product and brand reputation. By setting up a carrier vetting process, you can continue to best serve your customers by assessing your carriers and safeguarding your freight.
1. Start By Establishing Clear Criteria
Positive Reputation: Look for carriers with a positive reputation, especially for refrigerated freight. Carriers with years of experience and positive reviews are more likely to have the expertise and resources to reliably handle your freight.
Equipment and Technology: Ensure that the carriers have well-maintained vehicles with up-to-date equipment, working reefer units, and temperature monitoring systems (for refrigerated product).
Compliance and Certifications: We recommend that you verify that your carriers comply with industry regulations [such as FDA Food Safety Modernization Act (FSMA)] and hold relevant certifications. Certifications like SQF (Safe Quality Food) or HACCP (Hazard Analysis and Critical Control Points) indicate a higher-level commitment to food and safety standards.
Insurance Coverage: This is a must. Confirm that the carriers have adequate insurance coverage, including cargo insurance specifically covered for perishable goods. This is an important financial protection need in case of any accidents during transportation.
2. Conduct Due Diligence
Research and Background Checks: Utilize online resources, industry databases, and referrals to gather information about carriers. Look for any red flags such as past safety violations or negative customer feedback.
Meetings and Carrier Visits: Schedule meetings with carriers to discuss their services, processes, and capabilities. If possible, visit them at their facility to see their equipment firsthand. There is tremendous value in spending time together in person to build a trustworthy partnership.
Request References: Don’t hesitate to ask for references from past or current customers. Speaking directly with other shippers can provide valuable insights into the carrier’s reliability and performance.
Review Contracts and Agreements: Carefully review contracts to ensure that all terms and conditions align with your expectations and requirements. Pay close attention to clauses related to liability, insurance, and service level agreements.
3. Monitor and Evaluate
After you have successfully on-boarded a carrier that meets your established criteria and passes your due diligence checkpoints, you will need to continuously monitor and evaluate their performance. Here’s how:
Establish key performance indicators (KPIs) such as on-time delivery rates, temperature compliance, and customer satisfaction scores to monitor and improve your carrier network’s performance.
Maintain open lines of communication and performance feedback. Address any issues or concerns promptly to prevent recurrence and maintain a collaborative partnership that creates growth potential.
Conduct consistent audits and inspections to ensure that carriers are following agreed-upon standards and protocols (including OTD scores, temperature checks, vehicle inspections, and other process audits).
Be flexible and willing to adapt your carrier selection criteria based on evolving business needs and industry developments. Embrace forward thinking and be open to exploring new ways that 3PL partnerships can enhance your refrigerated logistics operations.
Now that you have a better understanding of what carrier vetting entails, you can refer to these steps – establishing clear criteria, conducting due diligence, and ongoing monitoring and evaluation– and you will be on your way to building a strong carrier base with an effective carrier vetting process. Next up in Vol.3, we will share how technology assessment tools can become a part of your vetting process, featuring Carrier Assure.
Article by Karly Wiest
