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Transportation procurement is a core process for SCO Logistics, supporting both capacity management as well as financial and operation cost improvement. SCO's goal is to evaluate the total number of carriers and create a core carrier network based on your requirements.
SCO Logistics views carriers as vital partners to a successful logistics services initiative. We contract with and reward carriers that are competitive and committed to safety, service and quality. We currently have contracts with over 400 carriers across all modes.
SCO utilizes the CarrierOffice Contrax Edition contract management tool to compare and analyze carrier networks, solicit rate quotes, and negotiate and manage contracts that fulfill the unique requirements of each customer.
SCO has the capability to manage opportunistic, regional and national sourcing exercises across all carrier modes. We work with the carrier community to balance lanes, reduce empty miles and improve operating ratios. And we make a web-based portal available to all carriers at "no cost".
Part of SCO's implementation process is to assess the carriers presently working with our customers. Traditionally, recommending carrier changes is deferred until after the initial assessment, thereby avoiding potential service interruptions. SCO's ultimate goal is to evaluate the total number of carriers and create a core carrier network. Concentrating shipments with stronger "core" carriers, generally results in improved economics and more consistent service.
Contracts with national and regional carriers that could serve multiple locations are preferred, but we recognize the need for local carriers in certain markets. SCO continuously measures the performance of carriers. These metrics include:
SCO strives to reward high performing carriers with opportunities for additional business. Performance reports are a critical component of SCO's continuous improvement process.
SCO also manages carrier non-conformance. Our customers may document carrier non-conformance. The carrier would be required to respond to the non-conformance complaint. The response includes root cause analysis and corrective action plans. SCO incorporates the non-conformance documentation process into its continuous improvement process.
Our customer's role in carrier management is generally regarded as a "collaborative partner." While SCO would perform the carrier procurement and management process, our customers input regarding the carrier selection, approval and contracting is critical.
