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Week 4 Collaboration, Freight & Inventory Strategies

Inventory

Q What is the purpose of freight classification? Describe the differences between a rate and a rating. How do they relate to classification?

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The system of freight classification has been formed in order to establish standards so that there is a simplification of negotiation of freight charges. The purpose of freight classification is to charge freight differently, appropriately and in a fair manner. This is because every type of freight cannot be charged in accordance with the magnitude of weight exclusively. For example, there are products like glass, crockery, etc. which are required to be handled carefully. Transportation of glass materials and crockery is extremely difficult as any inappropriate or careless handling of such materials can lead to damaged goods being transported due to carelessness of the workers loading the materials.