Doctoral Dissertations

Date of Award

8-1995

Degree Type

Dissertation

Degree Name

Doctor of Philosophy

Major

Business Administration

Major Professor

Ray A. Mundy

Committee Members

John Langley, Pete Patton, Ken Gilbert

Abstract

Transportation purchasing has become a strategic activity that serves as a cornerstone for JIT programs and global sourcing/selling initiatives. As a result, transportation managers are faced with the daunting task of simultaneously reducing inventory levels, increasing service levels, and controlling costs. They need the ability to identify strong carriers, evaluate their performance, and build strong relationships with those of the highest quality. One strategy with the potential to identify exceptional carriers is supplier certification. This research filled a void in the literature regarding the application of certification to the purchase of industrial transportation services. Carrier certification was analyzed through an expert survey, a national survey, or case studies. Over 420 organizations participated in the research. The research revealed that carrier certification is growing in popularity. Nearly 40 percent of the participants have a certification program. Most of them were developed between 1991 and 1993. Certification has been widely used by organizations with a large volume of traffic, time sensitive goods, and/or a need for safety. The participants expect that usage will increase over the next five years. The participants viewed certification as a performance enhancing, risk aversive strategy. Overall, the quantitative value of a program lies in the on-time performance improvements, transit time reductions, claims reductions, and cost control that can be achieved. Qualitative benefits include stronger shipper-carrier relationships, improved communication, enhanced operational knowledge, and the development of mutual goals. The study produced a four phase carrier certification model. Development involves creating a basic program framework, assembling a certification team, and introducing the program to carriers. Implementation focuses on qualifying carriers to participate in the program. Evaluation entails periodic reviews of carrier performance versus pre-established standards. Rating produces a weighted score of performance and service quality. These scores are used to categorize carriers and make long range decisions regarding business relationships. Overall, the research revealed that carrier certification is an objective, process-oriented strategy that simultaneously pursues exceptional customer service, equitable carrier compensation, and internal cost control. With the current focus on continuous improvement, carrier certification merits additional academic and industry attention.

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