84 Freight consolidation

Freight consolidation

As the size of shipment increases, the transportation charge per unit of weight will reduce. To take advantage of these rate economies, Procurement should attempt to consolidate shipments. Instead of shipping everyday, the shipments could be accumulated for a week and then shipped. This is especially true for overseas shipment sent by sea and paid by the buyer instead of supplier.


BLC 304/05 Procurement Management Copyright © 2009 by Wawasan Open University. All Rights Reserved.


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