Freight Management Quiz

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.