by Ekrem Duman | Jul 18, 2026 | Contract Negotiation, Cost Reduction, Procurement
⚡ TL;DRCAF is a currency adjustment factor used to manage exchange-rate movement in freight pricing. Procurement should identify the currency basis, reference date, index, calculation, notice, cap, floor and scope so an FX adjustment is transparent rather than a...
by Ekrem Duman | Jul 18, 2026 | Cost Reduction, Procurement, Sourcing
⚡ TL;DRBOARD FEET measure a volume of sawn wood equal to 12 inches by 12 inches by 1 inch. Procurement should specify the measurement basis, grade, moisture, conversion factor, tolerances, yield and inspection evidence before comparing timber quotes or paying...
by Ekrem Duman | Jul 18, 2026 | Cost Reduction, Procurement, Sourcing
⚡ TL;DRA BLANKET RATE applies one transport price or tariff across multiple items or shipments within a defined scope. Procurement should prevent the broad label from hiding different density, handling, liability, equipment or route assumptions. Key TakeawaysDefine...
by Ekrem Duman | Jul 18, 2026 | Contract Negotiation, Cost Reduction, Procurement
⚡ TL;DRBASE RATE is the primary transportation charge before additional services or surcharges. Procurement should define the lane, unit, equipment, included work, minimum, validity, index and accessorial boundary so the headline rate remains comparable and auditable....
by Ekrem Duman | Jul 18, 2026 | Cost Reduction, Procurement, Supply Chain
⚡ TL;DRBALLOON FREIGHT describes cargo that is light but consumes substantial space. Procurement should manage the cube, dimensional rating, packaging, stackability, damage exposure and route capacity together instead of focusing only on scale weight. Key...
by Ekrem Duman | Jul 18, 2026 | Cost Reduction, Procurement, Supply Chain
⚡ TL;DRAGREED WEIGHT is the weight accepted by shipper and carrier for a shipment or tonnage commitment. Procurement should define the measurement source, tolerance, unit, rounding, reweigh process and commercial result before a weight difference becomes a safety or...
