Industry background and topic description
Completing a form, obtaining a statement or calculating a result does not mean that the transportation and logistics industry has done a good job in contractor management. True management also includes data boundaries, risk classification, evidence quality, division of responsibilities and improvement tracking. Supplier management should not only look at whether they respond to questionnaires, but also conduct risk classification based on procurement importance, location, industry risks, severity of deficiencies, and quality of supporting evidence.
Common pain points in management
[Pain Point 1 | Questionnaires, evidence and scores are scattered]
When the transportation and logistics industry handled contractor management in the past, each unit often collected fuel, mileage, load, route, transportation means, storage energy, and contractor information based on their own forms and understandings. When required by customers, competent authorities, or inspections, a small number of personnel would then centralize the collection. This method is prone to problems such as different scopes, misplaced units, inconsistent periods, and lack of supporting evidence. Supplier management should not only look at whether they respond to questionnaires, but also conduct risk classification based on procurement importance, location, industry risks, severity of deficiencies, and quality of supporting evidence. Without a common definition, even if the figures are completed, it will be difficult to explain the reasons for the changes, let alone determine whether the differences come from real improvements or changes in calculation caliber. When cargo owners, contracting fleets, shipping airlines, authorities and end customers raise further inquiries, the team often has to reconfirm, increase communication and redo work.
[Pain Point 2 | High-risk suppliers lack classification and improvement tracking]
Contractor management in the transportation and logistics industry involves multiple departments and external partners, and the update frequency, review authority, and delivery time of each unit are different. If it is still transmitted through emails, shared folders and multiple Excels, it is difficult for the person in charge to know in real time which data has not been responded to, what content has been modified, and whether the deficiencies have been corrected. Manpower will be spent for a long time on collection, copying and pasting, and comparing versions instead of analyzing the reasons. Once personnel change or face multiple demands at the same time, work quality may also decline significantly. It is usually easier to maintain data quality if this work can be completed during normal times, rather than waiting until declarations, verifications or customer reminders are required. The management system also needs to clearly define the responsible person, update frequency and exception handling methods to avoid re-exploring after personnel changes.
[Pain Point 3｜The data is completed, but it cannot support management decisions]
Many in the transport and logistics industry view contractor management as a pre-delivery exercise for annual declarations, customer questionnaires or verifications, and once completed the information is left in reports or personal files. Managers are unable to continuously compare differences across locations, products, periods, or partners, and it is difficult to identify areas that truly need improvement as a priority. In particular, the data comes from different vehicles and partners, and the empty load rate and allocation method affect the results. Without consistent classification and comparison benchmarks, a single total amount can easily cover up efficiency decline or local anomalies. The result is that even though companies spend a lot of time getting the numbers, they still lack the information to use for budgeting, targeting, and resource allocation. It is usually easier to maintain data quality if this work can be completed during normal times, rather than waiting until declarations, verifications or customer reminders are required.
[Pain Point Four | External requirements are becoming more and more detailed, and evidence preparation cannot keep up]
Cargo owners, contracting fleets, shipping airlines, competent authorities and end customers are not only concerned about whether the company proposes policies, but will also further inquire about the data boundaries, methods, responsible persons, supporting evidence and improvement records. If the contractor’s management process does not retain the coefficient version, review comments, modification reasons, and attachment links, the contractor must reassemble the evidence in a short period of time. Although the formats used by different customers or auditing units are not exactly the same, the core data is often repeated. The lack of a shared data base will result in the same question being filled in repeatedly, and there may even be a risk of inconsistent external responses in different versions. It is usually easier to maintain data quality if this work can be completed during normal times, rather than waiting until declarations, verifications or customer reminders are required.
How to improve the management process and what benefits will it bring?
[Core Benefit 1｜Improve supply chain transparency and put manpower in high-risk objects]
Originally, each unit used its own form to organize the data, and then the person in charge checked, merged and questioned each item one by one. The progress of the work was highly dependent on personal experience. After the supplier management and questionnaire system is introduced and paired with ISO 20400 and EcoVadis, questionnaires, evidence review, risk scoring, improvement deadlines and tracking processes can be unified according to the actual process of the transportation and logistics industry, so that data can be logged in a common format when it is generated, and the source, period, coefficient, attachment and modification record can be retained. Users can quickly identify gaps and anomalies without retrieving data from different files every time; managers can understand the completion status and reasons for differences. This can turn one-time delivery work into daily management, and existing records can also be used to respond to audits or customer requests. It is usually easier to maintain data quality if this work can be completed during normal times, rather than waiting until declarations, verifications or customer reminders are required.
[Core Benefit 2 | Reduce the burden of cross-department collaboration and version management]
Originally, contractor management required repeated collections through emails, meetings, and shared files, making it difficult for the contractor to confirm the latest version and responsibility. After importing the supplier management and questionnaire system, you can set up the filling, return, replacement, review and approval processes, and manage permissions and deadlines based on roles. Consulting services can help companies clarify the processes, definitions and necessary evidence first, so as to avoid just moving confusing forms online. For those who fill in the form, the system can clearly display the work that needs to be completed and the gaps; for the coordinator, the progress can be viewed centrally without having to track each letter one by one. Cross-department collaboration is therefore more transparent, and existing records and rules can be used when personnel changes. It is usually easier to maintain data quality if this work can be completed during normal times, rather than waiting until declarations, verifications or customer reminders are required. The management system also needs to clearly define the responsible person, update frequency and exception handling methods to avoid re-exploring after personnel changes.
[Core Benefit Three | Detect abnormalities early and focus on high-risk projects]
The original team usually waits until the annual compilation or external audit to discover data anomalies, missing data or overdue improvements, leaving limited time for on-site corrections. Through supplier management and questionnaire systems, companies can set reasonable scopes, necessary fields, risk classifications and overdue reminders based on contractor management, and link exceptions to responsible units and improve records. Users can receive prompts during the data entry stage to reduce redoing afterwards; managers can also deal with projects with greater impact or risk first from a large number of projects. This shift from post-remedial to proactive prevention helps reduce the risk of missing checks, customer returns, and operational interruptions. It is usually easier to maintain data quality if this work can be completed during normal times, rather than waiting until declarations, verifications or customer reminders are required. The management system also needs to clearly define the responsible person, update frequency and exception handling methods to avoid re-exploring after personnel changes.
[Core Benefit Four | Let data become the basis for improvement and resource allocation]
Originally, contractor management results were mostly limited to annual figures or report chapters, and were not necessarily returned to the operating unit after completion. It was difficult for supervisors to determine which base, process or partner resources should be invested in. After introducing the supplier management and questionnaire system, and combining it with ISO 20400 and EcoVadis, consistent classification, comparison benchmarks and improvement tracking methods can be established, and fuel, mileage, load, route, transport, storage energy and contractor information can be converted into comparable management information. Users can reduce duplicate spreadsheets and shift time to cause analysis; supervisors can prioritize based on risk, cost and improvement potential. After long-term accumulation of data, enterprises can not only respond to cargo owners, contract fleets, shipping companies, authorities and end customers, but also observe trends, check whether goals are effective, and provide a basis for next year’s budget, procurement or investment plans. It is usually easier to maintain data quality if this work can be completed during normal times, rather than waiting until declarations, verifications or customer reminders are required.
Which enterprises or usage scenarios is it suitable for?
- Transportation and logistics industries that require contractor management but currently mainly use Excel, Email or shared folders
- Having multiple locations, factories, projects, products or suppliers requires unified data caliber
- Frequently face information, verification or disclosure requests from cargo owners, contract fleets, shipping and airlines, competent authorities and end customers
- Hope to reduce the burden of manual compilation, version comparison and collection
- There is a management system in place, but there is a lack of continuous tracking and cross-department collaboration tools
- Enterprises preparing to introduce relevant standards, third-party verification or customer supply chain projects