ISM INTE Exam - Topic 4 Question 41 Discussion

Actual exam question for ISM's INTE exam

Question #: 41
Topic #: 4

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?

AAnalyze mode, classification and other factors that affect total cost

BUtilize supplier performance metrics to ensure optimum rates

COpt for variable freight rates

DConduct carrier cost auditing to reduce net costs of transportation

Show Suggested Answer

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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