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The existing window glass supplier in South Korea has been arranging and paying for freight to LSP's location in Milton, ON. With the potential of
The existing window glass supplier in South Korea has been arranging and paying for freight to LSP's location in Milton, ON. With the potential of the new supplier in Athabasca, AB, you were to ship in TL volumes only, but a last-minute negotiation has seen the ability to ship the window glass in LTL quantities from Athabasca to LSP in Milton. You have been asked by the CEO to investigate the possibility of sourcing LTL carriers however, early pricing from the carriers sees that three of the four of them have classified your product higher than one other LTL carrier. The three LTL carriers propose that the window glass be classified at 175, (using the Natioml Motor Freight Carrier Association system) and the one other carrier is quoting at class 200. Specifically, using your course learnings (online modules, discussion boards and textbook readings), you've been asked to focus on the logistical impacts and provide a detailed response to these two challenges: 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 for a product that they will transport. 2. Provide insight into what would change at LSP 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
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