4.6.2.2. Records of premium freight - Anybody who have a true explanation?

[Daniel Emond]

Hi, this is my first posting on the Cove.

Is there anybody who have a true explanation of the records of premium freight (4.6.2.2) we have to develop according to the monitoring of delivery performance of subcontractors ?

Excuse me for my english... French is my first language.

 

[Dawn]

Premium freight is what you pay to ship any orders other than the regular freight costs. They want you to monitor it so your customers are not being charged extra uneeded costs for shipping. Our Office Assistant tracks it on a log whenever we use UPS Red, Next Day Air, etc. and then we review it quarterly in management review meetings to look for ways to keep costs down. Hope this helps.

 

[Daniel Emond]

Thanks a lot. I've heard that we had to build a record of all regular shipping costs. I better like this way !

 

[Marc]

They want you to monitor it so your customers are not being charged extra uneeded costs for shipping.

They also want to make sure YOUR company is not experiencing 'unneccessary' expense. Many companies absorb (do not pass on) premium freight costs when they ship late. If you're using premium freight and it is not part of the your original quote and the original requirements it is signaling a problem. If it is continuous it may indicate you ar having serious problems (they ask "Why are they always so behind that they can't ship on time? What is the REAL problem?")

[This message has been edited by Marc Smith (edited 02-05-99).]