Department of Defense's Carrier Evaluation and Reporting System for Measuring the Performance of Household Goods Carriers

The Carrier Evaluation and Reporting System of the Department of Defense (DOD) is a quality control program designed to measure the performance of household goods carriers participating in DOD domestic household goods shipments. Carriers providing high quality service at competitive rates are rewarded with a greater volume of traffic than carriers providing lower quality service. Performance factors considered include ontime pickup and delivery, absence of loss or damage, customer satisfaction, and shipment handling and administrative procedures. A composite score is computed for each carrier, indicating its average performance for all shipments handled.

Although it is too early to measure the full impact of the test of the new system, there are indications of significant improvements in the quality of service under the test program. For example, during May through September 1976, carriers missed the ordered pickup date on less than 0.2% of shipments at the 11 program sites, compared to a nationwide rate of 5%. The effect, if any, of the program on the incidence or extent of loss and damage claims could not be determined due to the lack of data from sites not in the program to compare with test statistics. From DOD's standpoint the quality of service in terms of ontime performance has improved under the program without corresponding increases in carriers' rates. Also, the program gives DOD a uniform basis for evaluating individual carrier performance. The carriers' main argument against the program is that it has resulted in carriers offering noncompensatory rates. Review of the program neither proved nor disproved this allegation.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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