Inbound transportation costs represent a significant expense at most organisations. And it is the responsibility of Procurement to manage this inbound transportation in a most efficient way to ensure cost saving, customer satisfaction and profitability in an organisation. Procurement also expected to work with manufacturing and logistics departments in order to achieve this purpose. Procurement, therefore should be familiar with the basic concepts of logistics and transportation in or to appreciate the implication of their decisions, such as transportation arrangement of goods from suppliers or negotiating of freight terms.
|Self-tests 4.5 and 4.6|
|Questions to self-tests 4.5_4.6
||Suggested answers to self-tests 4.5_4.6