Probably THE biggest challenge facing DSPs is knowing who is a good driver and who is not. DSPs make pay and termination decisions based on this information and if drivers are ranked incorrectly, bad drivers are paid more and good drivers start leaving.
How Amazon Defines ‘Good Driver’
What exactly is a ‘good driver’? Most DSPs go right to the scorecard and believe Amazon’s ranking of drivers. That is a HUGE mistake. While Amazon is a metrics-driven company, they only track metrics they care about. After being in the DSP business for 2 years, here is what I have concluded concerning Amazon’s priorities, in descending order of importance:
- We want our customers to rave about us.
- We do not want any bad PR in the media.
- We want to make buckets and buckets of money.
- If DSPs make money too, then OK.
Therefore, the metrics that Amazon will track for drivers and the scorecard directly mirrors their priorities above:
We want our customers to rave about us.
- We want our packages to arrive when we say they will (Capacity Reliability, Delivery Completion Rate, Scan Compliance , Contact Compliance)
- We want customers to love us instead of complaining (Customer Delivery Feedback, Customer Escalation Defect DPMO)
We do not want any bad PR in the media.
- We don’t want people complaining about our drivers (Safe Driving Metric, Seatbelt-Off Rate, Speeding Event Rate, Sign/Signal Violations, Distractions Rate, Following Distance Rate
- We don’t want people thinking we’re a sweat shop (Working Hours Compliance)
- We don’t want our vans to break down and considered to be unsafe (On-Time PM Compliance, DVCR Compliance)
- We don’t want drivers saying bad things about us (Lowe Performers Share, High Performers Share, Attrition Rate)
We want to make buckets and buckets of money.
- We don’t want to send free stuff out (Delivered and Received, Photo-On-Delivery, Attended Delivery Accuracy)
How DSPs Define ‘Good Driver’
Since the scorecard reflects on how well a DSP aligns with Amazon’s ‘wants’, and the scorecard directly impacts how much revenue a DSP makes, all a DSP should focus on is the scorecard right?
Well, if you want to increase revenue while ignoring how much money you make, sure. The problem is that increased revenue is only ½ of the formula for a successful DSP. The other ½ includes costs. Here are the top 4 costs that a DSP faces, in order of descending impact (i.e. the ones at the top have the greatest cost):
- Payroll (hourly pay plus taxes)
- Vehicle leasing
- Vehicle insurance
- Vehicle damage repairs
Notice than not a one of these costs is reflected in the scorecard, because Amazon doesn’t care how if you make money or not. As a DSP, you have very little control over the cost of vehicle lease payments and insurance premiums (#2 and #3), but you can have a significant impact on controlling costs due to payroll and van damage repairs (#1 and #4). These two costs can be controlled through one action only –driver behavior.
Therefore, a ‘good driver’ not only has a great score on the scorecard but does the following three things as well:
- Completes routes in a reasonable amount of time (which in turn reduces the number of hours paid each week and eliminates overtime)
- Does not damage your vans (reducing costs to repair vans)
- Reliably shows up for work (which in-turn impacts capacity reliability on the scorecard)
In fact, if you were to combine all of Amazon’s metrics with the three metrics above, here is a list of how much each impacts your profitability (most impactful at top):
- Hours per route
- Speeding events
- Delivery Completion
- Delivered and Received
- Everything else…
The two largest predictors to your success as a DSP is not even included when ranking drivers.
Don’t make the mistake of thinking that SPH (shipments per on-zone hour) or the last delivery dictates hours per route. Some drivers love to have a great SPH and end their delivery time as soon as possible, and then just milk the clock to increase their pay – that not only gets them a great scorecard ranking but fattens their paycheck by running up the hours. Total hours per route from punch-in to punch-out is the only thing that matters in terms of how efficient a driver is.
Ciibo’s Driver Score
This is where Ciibo steps in to automatically close this gap and tell you who you good drivers truly are in an objective, reliable and real-time manner.
Ciibo automatically aggregates data points from all relevant sources:
- Amazon Scorecard (Contact Compliance, Scan Compliance and Attended Delivery Rate)
- Amazon DA Performance (Delivery %, Delivered and Received, SPH, POD Success)
- Amazon Fleet History (DVIC )
- Amazon Customer Feedback (Infractions, positive/negative comments)
- Amazon Photo Quality Results (Reasons for POD failures)
- Mentor (FICO, Phone Distractions, Unwatched Videos)
- Payroll (Paycom or ADP – hours recorded by the driver)
- Netradyne (Driving Distractions, Seatbelt-Off, Following Distance, Sign/Signal Violations)
Ciibo then combines this third-party data with the information captured in the Ciibo app:
- Vehicle Damage
- Dispatcher-Recorded driver hours
An advanced formula is then used to arrive at a single composite score that encompasses all of the above information, so that you see in a single list how your drivers rank. The beauty of this patented system is that you have complete control over the weighting of each metric such that the score reflects your own priorities, not Amazon’s. Want to make hours per route have a greater impact on the total score? You can easily increase that weight. You can even shape the score differently each week to reflect the struggles you want drivers to focus on for that week.
Pay Your Best Drivers More
But the score in only part of the solution. Ciibo can automatically calculate bonuses based on each driver’s score, so it’s easy to reward the best drivers without having to spend time performing your own calculations. Best of all – drivers can view their own score and how it impacts their hourly pay using the Ciibo Driver mobile app (available in both the Play Store and Apple Store). Instead of having to coach drivers on how to get better, they can simply view their score and it will tell them where they should focus in order to make the most $ per hour. Since the shape of the score reflects what is important to you as the DSP, drivers will automatically focus on the behaviors you wish them to improve upon.