Collaboration, Freight & Inventory Strategies

Collaboration, freight & inventory strategies
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Collaboration, freight & inventory strategies
Freight classification was created by the National Moor Freight Traffic Association (NMFTA), for the purpose of standardizing freight pricing. The classification inclusive of classes is cataloged with the NMFT tariff. The shipping commodities are put in groups, for instance, 18 freight classes between 50 and 500. Carriers and shippers commonly use freight classifications as a standard to set shipping rates. The classification determines the price charged to the customers. To identify the freight classification, other several factors must be considered. These are; weight, height, density, length, value and liability and ease of handling the products (Briskorn & Jaehn, 2013).
Besides, the freight classification is a protection for customers. The classification is done so that the carriers can differentiate products. For instance, they will not stack bricks on top of bubble wrap. There is order, and the customers are sure the commodities are safely packed. Also, it prevents noise because if there is no order in the arrangement, the carrier will be noisy (Briskorn & Jaehn, 2013).
A rate is a standard value to something that is set per a particular scale. For instance in freight classification, as mentioned above there are 18 freight classes that lie between 50 and 500. A commodity classified at 55 will be charged a different rate from a commodity at 60. The rate is fixed according to the classification.
A rating is a classification that is given to something on the basis of factors such as quality. For instance in freight classification, commodities that are of high quality are rated higher than those with low quality. If the rating is higher, the rate given will also be high. The difference between rating and rate is that rating is the value associated with a certain commodity or service while a rate is a fixed charge...