Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?

In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement.

Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?
A . Analyze mode, classification and other factors that affect total cost
B . Utilize supplier performance metrics to ensure optimum rates
C . Opt for variable freight rates
D . Conduct carrier cost auditing to reduce net costs of transportation

View Answer

Answer: A

Explanation:

Analyzing transportation modes, classification, and cost-influencing factors allows the supply manager to identify opportunities for cost savings beyond published rates. This approach leverages supply management skills to optimize logistics strategies, demonstrating value in cost reduction.

Reference: Logistics management theories advocate for comprehensive cost analysis to enhance decision-making and operational efficiency.