What is the FXF rate for this shipment? Hint: You need to determine the transportability class of
Question:
What is the FXF rate for this shipment? Hint: You need to determine the transportability class of this shipment (http://shipfreight.van.fedex.com/ClassificationTool.aspx). Then, you can get the rate from https://www.fedex.com/ratefinder/standalone?method=goToFreight&from=Package: Enter From, To, no. of skid (1), Weight (in pounds), and Class, and press "Get-rates and transit times'' in the bottom.
Summerwood is a high-end shed and gazebo manufacturer in Toronto. The majority of Summerwood's products are delivered to the customer in a kit (separate pieces of wood). Summerwood's customers are located all over North America. The website has enough information for a potential buyer to choose the model and size of the structure she wants, and to order it online. The website has extensive information under "ordering" and "delivery'' to make the fulfillment process clear to the buyer in order to reduce customer misunderstanding and disappointment. The fulfillment process is summarized in the following process flow diagram (for delivery to outside Southern Ontario). Summerwood uses various trucking companies to deliver its products throughout North America. Depending on the size of the structure, the kit could weigh anywhere from a few hundred pounds to 3,000 pounds.
The LTL shipment is transported under "standard motor freight," which is deliveries by semi-trailer truck that are offloaded by the buyer. Assistance with unloading can be arranged (for approximately $200) through local employment agencies but this has to be specified days before the delivery so that it can be arranged (the truck driver won't help with unloading). Even though the delivery process is clearly stated on the website, some customers are taken by surprise (unprepared) when the truck arrives. They complain that given the high cost of the product, the unloading should have been included and they assumed this. Management is wondering what else to do to prevent these types of customer complaints.
A possible solution may be to include unloading as part of the delivery, but at a higher delivery cost. FedEx Ground Freight (FXF) provides unloading service as the default. Summerwood management wishes to compare its current delivery rates with FXF rate. As a sample, consider a small (5 foot x 7 foot) shed. The current carrier is asking $750 for freight from Summerwood's shop in Toronto (postal code MlH 2W7) to the postal code S7N 5A 7. The pre-cut unassembled shed wrapped on a skid weighs 740 pounds with dimensions 88 inches x 52 inches x 29 inches.
Step by Step Answer:
Operations Management
ISBN: 9781259270154
6th Canadian Edition
Authors: William J Stevenson, Mehran Hojati, James Cao