CTS Carrier Selection & Contract Management Flashcards
6 cards from real CTS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 6 CTS Carrier Selection & Contract Management flashcards as text
What is the primary purpose of a carrier Request for Proposal (RFP) in transportation?
Answer: To solicit competitive bids from carriers for freight lanes or services
A carrier RFP is a formal process where shippers invite carriers to submit rate bids and service proposals for specific freight lanes or transportation needs.
Which carrier performance metric measures the percentage of shipments delivered on or before the promised date?
Answer: On-time delivery (OTD) rate
On-time delivery (OTD) rate tracks the percentage of shipments that arrive at their destination by the committed delivery date, a key service quality indicator.
What does 'tender acceptance rate' measure in carrier management?
Answer: The percentage of loads a carrier accepts when offered by a shipper
Tender acceptance rate measures the percentage of load tenders (shipment offers) that a carrier agrees to haul, reflecting carrier reliability and capacity availability.
What is a transportation contract's 'minimum volume commitment' clause?
Answer: A guaranteed minimum amount of freight a shipper will provide to a carrier over the contract period
A minimum volume commitment clause obligates the shipper to tender a specified minimum amount of freight to the carrier, giving carriers predictable revenue in exchange for contracted rates.
Which factor is most important when evaluating a carrier's safety rating for US highway transportation?
Answer: FMCSA Safety Measurement System (SMS) scores and USDOT safety rating
FMCSA SMS scores and the official USDOT safety rating (Satisfactory, Conditional, or Unsatisfactory) are the primary measures of a carrier's safety compliance in the US.
What is the difference between a primary and backup carrier in a routing guide?
Answer: Primary carriers get first tender at contracted rates; backup carriers are used if the primary declines or is unavailable
A routing guide assigns primary carriers first right of refusal at negotiated rates, with backup (secondary) carriers activated when the primary declines or cannot service the lane.