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Allocation rate
Allocation rate

Understand and improve your real-time visibility metrics

M
Written by Manuela Rott
Updated over a week ago

What is the allocation rate?

The allocation rate shows how many transports of a given carrier had a license plate assigned compared to the overall number of transports. This rate is always calculated for a certain timeframe and like all visibility metrics, it should be as close to 100% as possible.

How is it calculated?

For a given time range, Visibility Hub takes all the transports assigned to a carrier and checks how many of these transports do not have a license plate allocated. This value, which is shown in the Transport Network in the Unallocated column, is used in the following formula: 1 - (Unallocated transports / Total transports) = Allocation rate

Example: Carrier A has 14 transports this week. For 2 of these, no license plates were allocated. 1 minus the result of 2 divided by 14 is 0,86. Which is an allocation rate of 86%. If the carrier would now allocate license plates to the last two transports, the allocation rate will be 100%.

Why is it important?

Transports without a license plate cannot be tracked by Visibility Hub. And without tracking, Visibility Hub receives no real-time visibility data which means we cannot predict when a transport will arrive for loading or unloading. Shippers rely on this information to prepare their facilities for loading and they share this information with customers to let them know when their goods will arrive.

How can it be improved?

For carrier this is relatively simple and all that needs to be done is to always allocate license plates to transports. It does not take much time but it has a huge impact on the operations of shippers and customers. Please see this detailed guide on how to allocate transports as a carrier.

For shippers, we recommend monitoring the progress carriers make over time with regards to the allocation rate. If they see that a carrier is now allocating less transports than before (lower allocation rate shown in Transport Network), please reach out to the carrier and discuss the reason for the lower rate.

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