| High Performance Freight Management | |||||||||
| Self Graded Quiz - How Well is Your Company Managing Its Freight Expense | |||||||||
| Instructions | |||||||||
| Please answer the following questions to determine how well your company is currently managing its | |||||||||
| freight expenses: | |||||||||
| 1) Does your company know how much its spends annually on all freight expenses? | |||||||||
| 2) Does your company directly pay for all freight expenses on its incoming purchase orders? | |||||||||
| 3) Does your company maintain written polices that identify which freight carriers, and which service | |||||||||
| levels, are to be used on incoming purchase orders from vendors? | |||||||||
| 4) Does your company maintain written policies that identify which freight carriers, and which service | |||||||||
| levels, are to be used on outgoing shipments to customers? | |||||||||
| 5) Does your company understand the financial impact of its current freight policies? | |||||||||
| 6) Do you know what individuals in your company are responsible for managing its freight expenses? | |||||||||
| 7) Does your company manage a budget for all in-bound freight expense? | |||||||||
| 8) Does your company manage a budget for all out-bound freight expense? | |||||||||
| 9) Does your company manage a budget for the gross margin that is generated from freight expenses | |||||||||
| that are passed on to your customers? | |||||||||
| 10) Do you know what individuals in your company can authorize freight expenses? | |||||||||
| 11) Does your company receive invoices, electronically, from the majority of its freight carriers? | |||||||||
| 12) Does your company completely validate all invoices received from your freight carriers on a monthly basis? | |||||||||
| 13) Does your company utilize a shipping system, for all shipments to customers, that is integrated | |||||||||
| with your company's enterprise management software? | |||||||||
| 14) Does your company understand how its major freight carriers view the freight business that it | |||||||||
| currently provides to them? | |||||||||
| 15) Does your company utilize current, and future, freight management trends when developing its | |||||||||
| annual business plans? | |||||||||
| Scores | |||||||||
| If you answered yes to 12 - 15 of these questions, | |||||||||
| your company is doing an "excellent" job managing its freight expenses | |||||||||
| If you answered yes to 8 - 11 of these questions, | |||||||||
| your company is doing a "good" job of managing its freight expenses. | |||||||||
| If you answered yes to 4 - 7 f these questions, | |||||||||
| your company is doing a "fair" job of managing its freight expenses | |||||||||
| If you answered yes to 0 - 3 of these questions, | |||||||||
| your company is doing a "poor" job of managing its freight expenses | |||||||||
| If you can not answer many of these questions, | |||||||||
| your company faces a major opportunity to significantly impact its bottom line profits. | |||||||||
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