The battery supplier in Tennessee has been arranging and paying for freight to Fat-E's location in Kanata. You have been asked by the CEO to investigate the possibility of arranging for your own freight and you've received a few quotes back from LTL carriers however they have all classified your product higher than the existing LTL carrier. You've noticed on your invoices that the carrier classifies the batteries today at 125 (using the National Motor Freight Carrier Association system) and your new quotes are being received at class 175. Specifically, you have been asked to:

1. Your CEO has requested that you update the senior management team by means of a brief report that will describe the reasons for freight classification and the primary factors that a carrier would need to consider in developing their own classification system.

2. Provide insight into what would change at Fat-E if they did decide to take on arranging and paying for the LTL freight themselves. Consider changes in roles and risks to complete this challenge.