The Military Surface Deployment and Distribution Command (SDDC), responsible for planning and oversight of worldwide surface transportation, is exploring a new program to assess the performance of Department of Defense domestic motor freight carriers.
Previously, SDDC evaluated the performance of Transportation Service Providers (TSPs) on a monthly basis, but did not specify performance actions based on the evaluations. Under this new program, SDDC will evaluate TSPs on a quarterly basis and will tie the performance rating to specific actions. This accomplishes two important objectives: First, it allows carriers to improve upon, or recover from, lower performance on the basis of a quarterly review versus the current monthly standard. Second, it spells out specific performance actions that SDDC will initiate based on a review of applicable data. As a result, SDDC will have the necessary information to target TSPs who are deficient in their performance compared with their peers, and shippers will be reassured that SDDC is managing carrier performance across the entire enterprise.
After years of planning, developing and educating users, SDDC's Carrier Performance Module (CPM) has become a useful tool to document the service failures of carriers hauling DOD shipments. Released in March 2013, CPM is an application within the Global Freight Management (GFM) system that provides an automated method to capture and track service failures, electronically generate Letters of Concern/Warning (LOC/LOW) and block freight awards to TSPs placed in a non-use status. Carrier performance standards are primarily defined in two regulations, the Defense Transportation Regulation (DTR) and the Military Freight Unified Rules Publication (MFTURP). These regulations are currently focused on performance failures occurring at the local level, while the new program will focus on enterprise-wide performance.
In support of the new program, SDDC has implemented its new quarterly performance review program with an enterprise standard of 90% service success. The success rate is calculated by comparing total carrier shipments with carrier service failures. As an example, a TSP with 20 awarded shipments in a quarter that receives 2 service failures would be in the 90th percentile for performance. The table below shows the progression of continuous quarterly actions that could result in TSP suspension or disqualification via a Transportation Review Board (TRB) hearing. It is important...