Memo

To: From: Date: RE:

Francois Damba Aung Kyaw Moe 29 May 2013

TASK 10 TRANSPORT

Operation Procedures for ensuring the Performance of Transport Provider After we have selected our new transport provider as per our pre-established selection criteria, it is necessary to monitor and evaluate their performance to ensure that they are delivering the required level of service at the agreed price. We have to do this monitoring process at the basic operational level for each transport job we assign to the provider. The basic document between our organization and the provider that define the respective terms of references and obligations is a Service Contract. In this Contract, we have to mention our requirement in terms of the scope and quality of the provided service, the method of operation the provider have to use, fees and charges and payment terms and conditions. According to our learning material, for road transportation we can expect the certain range of services from our provider as follows: Provision of a vehicle or vehicles under the management of the aid organisation for either a short spot hire requirement or on a longer term basis. The charging will usually be quoted on a day or weekly rate basis. Provision of vehicles and drivers under the management of the aid organisation for either a short spot hire requirement or on a longer term basis. The charging will usually be quoted on a day or weekly rate basis. Provision of trucking services to collect and deliver goods.

We can choose the different ways of settling charges with the service provider as per the conveniences of both parties. We can have the settlement at Fixed Cost for a fixed/pre-determined journey as per load or consignment. We can use that type of payment if we can plan and well predict the movement of our cargo. Another way of charging service is by Rate per Unit. In this case we have to define bilaterally about the charges of transportation. The definition of basic accounting unit can be vary as a cost per case, per day, per man hour, per kilometre or per pallet kilometre.

If we can enter into a long term contract/agreement with a transport provider, we can use Open Book/Cost Plus way of payment in which our organization and the contractor will agree the resources required to provide the desired level of service. The very first step of operation procedures is to make ensure that the contracted transport provider must be provided necessary documents for his operation. They are: Despatch Request to the Warehouse to issue out the supplies according to the particular distribution list Authorization document for provider in order to facilitate the operation by the local authorities concerned Delivery waybills from warehouse to the final destination

We have to check very thoroughly that these documents are correct and certify that the transport provider received all quantity of supplies from the warehouse for transportation. When the delivery is finished the transport provider may bring his delivery documents in order for claiming his fees for transportation. It is so important to check and verify so thoroughly these submitted documents before decision to make payment. In this regards, we have to consider for the following points: Correct recipient received the delivery of supplies and official seal and signature Check that there is any discrepancies about total quantity and type of goods delivered Date of arrival must be within the limit of agreement with the provider on contract Check that there is any positive and negative comments about the service of the provider by the recipient Check that is there multiple delivery and the issue of unprofessional sub-contracting

Creating a standard form to collate and review performance data Performance evaluation refers to a process of monitoring and analysis to determine how well organizations perform with regard to their intended goals and objectives. This provides useful guidance for planning and management decisions. Performance evaluation must be carefully structured to accurately reflect goals. Inappropriate or incomplete evaluation can misdiagnose problems and result in bad decisions. After getting Contract with the provider and assigning some jobs to the provider, it is essential to monitor their performances which are complied with the level of service we expected from this company. The major source of gathering performance data is transport providers consignment notes. The data mentioned on the consignment/delivery note should reflect that the service provided is met with the agreement of contract. According to our learning material, there are two type of data we can get from consignment notes: (1) Hard Data: it is easily measurable data like Timely delivery/ Punctuality, Full Delivery in Quantity, Damage and Cost, and Handling of the cargo. (2) Soft Data: related to the despatching and receiving organisations perception of the service provided by the provider in terms of such attributes as driver attitude, condition of vehicles and flexibility.

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Performance data should be collected on an ongoing basis and presented weekly or monthly depending on the requirements of the organisation and the level of activity of the provider. Based on the above considerations, we can make a draft standard form to check and monitor the performance of our transport provider for each case of transport consignment; (See Attached Form below at page 4) Providing Feedback Information to the Service Provider We have to check and monitor the performance of provider in case by case basis and the main objective of this monitoring exercise is to make sure that our contracted service provider is performing in accordance with the contractual terms and conditions. In this case, the result of this monitoring and evaluating performance must be communicated to the provider as feedback information in order to (a) see its own strength and weakness in managing transportation and (b) make necessary action to rectify the mistakes and improve its performance in future. We have to encourage the provider to provide us weekly status report and final report of each case of transportation and the information in these reports should be the main issues for bilateral discussion. Every time a case/issue pop up, we have to take immediate action to correct it and try to negotiate with the provider in a constructive way rather than in a confrontational way. We have to cultivate the partnership with our service providers in order for obtaining betterment of the overall supply chain management for our humanitarian activities.

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Draft Standard Form for monitoring Performance of Service Provider Name of Service Provider Contract No./LTA No. Consignment No. Destination Performance of Collecting Supplies Vehicle Space Usage Loading and Stacking Vehicle Safety and Security Punctuality and Time usage Pre-delivery Communication Flexibility in Vehicle Replacement Delivery On Time Delivery in Full Quantity Managing Loss and Damage Unloading and stacking Dealing with Warehouse Staff Weekly Status Reporting Reporting of specific Issue Timely Submitting of Invoice/Receipt Notes ______________________________ ______________________________ ______________________________ ______________________________ Excellent Good/ Satisfactory Poor/ Unsatisfactory Reasons/ Remarks

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