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ISM INTE Exam - Topic 4 Question 41 Discussion

In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement. Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?
A) Analyze mode, classification and other factors that affect total cost
B) Utilize supplier performance metrics to ensure optimum rates
C) Opt for variable freight rates
D) Conduct carrier cost auditing to reduce net costs of transportation

ISM INTE Exam - Topic 4 Question 41 Discussion

Actual exam question for ISM's INTE exam
Question #: 41
Topic #: 4
[All INTE Questions]

In an effort to cut expenses, GHI, Inc. moves responsibility for logistics to the supply management department. Some officers in the firm are skeptical that this move will be beneficial, since most shipping providers use published rates, and there will be little room for cost improvement. Which of the following will be the BEST way for GHTs supply manager to demonstrate that supply management skills can obtain better value in shipping?

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Suggested Answer: A

Analyzing transportation modes, classification, and cost-influencing factors allows the supply manager to identify opportunities for cost savings beyond published rates. This approach leverages supply management skills to optimize logistics strategies, demonstrating value in cost reduction. Reference: Logistics management theories advocate for comprehensive cost analysis to enhance decision-making and operational efficiency.


by Judy at May 29, 2026, 09:09 AM

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Brandee
1 day ago
C) sounds risky, but could be worth exploring!
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Colby
6 days ago
D) could really help uncover hidden savings!
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Shawn
12 days ago
Not sure if any of these will really change costs much.
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Olene
17 days ago
Totally agree, B) is essential for getting the best rates.
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Hyun
22 days ago
A) is key for understanding total costs!
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Abel
27 days ago
I feel like variable freight rates could be risky; I’m leaning towards A or D, but I’m not completely confident.
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Carin
1 month ago
I practiced a similar question where conducting audits helped identify inefficiencies, so D might be the best way to show value.
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Edelmira
1 month ago
I’m not sure, but I think using supplier performance metrics could help negotiate better rates, which might make B a good choice.
upvoted 0 times
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Paz
1 month ago
I remember we discussed how analyzing total costs can reveal hidden savings, so A seems like a strong option.
upvoted 0 times
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