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Module 8

Formative and Summative Assessments


200 marks

This assessment covers:

Unit 252296 Secure and retain new business in the freight forwarding industry

Unit 252260 Select and develop service providers for a forwarding operation

Please answer the following questions:

  1. Describe the process that should be followed to determine a suitable target market for a freight forwarder. (F20)
  2. Use an industry specific solution in place at the freight forwarder that you represent to create a value proposition. (S25)
    1. Describe the industry solution and list at least 5 features and benefits. Give priority to the unique features and explain how you know that these features are unique.
    2. Link the 5 benefits to the applicable industry drivers taking the three types of drivers into account. Show the methodology used to decide what these industry drivers are.
    3. Identity your number one competitor in this industry and list their unique features. Identify which of your own features could satisfy the same value drivers as these unique competitor features, explaining your argument.
    4. Create a value proposition that differentiates your organisation by using compelling language.
  3. Describe the process to identify a client’s logistics needs. (F20)
  4. The freight forwarder you represent has decided to standardise their proposals to clients. They have used an external marketing company to design this proposal and it includes all the different types of services you provide on a global scale. This proposal will be printed in a book format and the design will only be revised annually. Your company has already incurred substantial cost in this process. Describe how you will convince the sales director that this approach may not be the best solution for your company’s proposals. Also suggest an alternative solution. (S10)
  5. A. In a meeting with an existing client, the client complains about the service he receives from your company specifically for his airbag orders from his supplier in Frankfurt. These orders are shipped via airfreight and the biggest problem is that he doesn’t receive any pre-alerts or notifications of customs stops. Sometimes orders arrive without his knowledge. The client also has to contact his controller for updates, as well as customs stops. He also doesn’t understand why he experiences so many customs stops. When you return to the office you discover that this account was never implemented properly. Use the RACI matrix to design an implementation plan. Discuss the reasons for the activities and role players listed on the RACI Matrix as well as justify the role you assigned to each of the individuals for the activities. (S25)

B. Using the same scenario as 5A, create an Account Management Dashboard which will be used to manage this account going forward to prevent any further poor client experiences. List at least 5 activities that should be performed in the next 2 months with reasons to each activity assigned. (S10)

  1. Explain why it is important to analyse an unsuccessful proposal as well as how this analysis should be conducted. (F5)
  2. Why is it important to include multiple parties when an organisation is determining their freight forwarding service requirements? (F5)
  3. A company imports Mont Blanc pens from Paris. Their preferred mode of transport is airfreight. In your opinion, what is the 10 most important selection criteria that they should consider when appointing a freight forwarder? Give reasons for each criterion listed as well as what the best method of verification will be for each of the criteria. (S30)
  4. Explain why selection criteria should be weighted as well as what should be considered in the weighting decision. (F5)
  5. A. Use the 10 selection criteria created in question 8 to benchmark the services of the freight forwarder you represent to determine your capabilities to handle the commodity described.(S12)

B. Suppose the importer of the Mont Blanc pens is an existing client, how will you know if the client views the relationship with you as one of strategic importance? (F8)

  1. Describe the relationship between freight forwarding selection criteria, SLAs, SOPs and KPIs.(F5)
  2. A SLA should contain at least 3 elements. List the elements and describe why they should be included in the SLA. In your opinion, which of these elements are the most important? Explain your answer. (F10)
  3. Use the 10 selection criteria created in question 8. Create a key performance indicator for each of these elements. Keep in mind that the verification measurements you already created are indicators of the freight forwarder’s capabilities to perform the functions. KPIs should measure the actual performance of the freight forwarder against these criteria. (S10)


Marking weighting – in respect of the weighting of the assessments – the Assessor should determine that the key knowledge criteria has been expressed and described within the responses to equal approximately 50% of the marks and thereafter award the balance of 50% of the marks to the application of that knowledge by virtue of analysis, comparison, critique and any other.

The Blooms Taxonomy Rose herewith may be utilised to identify the appropriate verb for the application of knowledge.


Question 1:

  1. Interrogate the data showing how it should be done with the use of questions. Learner should share some example questions. (4)
  2. Analyse existing client portfolio by asking some key questions. Learner should give examples of these questions.(4)
  3. Perform a competitor analysis. Learner should describe the 3 key elements that should form part of the analysis. (6)
  4. Create a framework consisting of 3 key factors (6)

Question 2:

  1. The learner should be able to identify and describe the solution by demonstrating an understanding of features and benefits as well as what is constituted as unique features. The learner should also give evidence of this uniqueness. (6)
  2. The learner should be able to determine what the value drivers are for the specific industry solution by using the questions in the material. The learner should then demonstrate in which category of value drivers these features fall with reasons given. (10)
  3. Learners should be able to justify why they selected the particular competitor. An understanding of value drivers is essential to be able to demonstrate which of their own features can satisfy value drivers in a different way. (4)
  4. The value proposition should be written in compelling language demonstrating a solid understanding of the industry value drivers as well as how the freight forwarder address these. (5)

Question 3:

The learner must be able to identify the 4 steps as well as give a clear description of each step to be followed. (20)

Question 4:

The learner should be able to demonstrate why a standard proposal is not the ideal situation. The argument should make reference to the needs analysis process where the preferred future state for each client will be different as well the constraints they face, the different role players as well as what they consider as priorities. The best solution may also be a new solution not detailed in the proposal because it could be designed with a particular client in mind. Procurement criteria will also be different from one organisation to the next. The learner should be able to come up with a creative solution that will take the investment already made into account. Since the learner will be communicating with a senior team member, it is important that the appropriate language is used and that the argument is based on fact, research and devoid of any emotion. (10)

Question 5

A. The learner should be able to list the activities needed to fix the problem as well as identify the correct parties to be involved. An explanation of the RACI role assigned to each party in each activity will also demonstrate whether the learner has a solid understanding of the concept. Allocation of marks:

  • Position of activities and role players (2)
  • Key activities such as pre-alert notifications, customs stops notifications, status updates or status reports, tariff determination, scrutiny of supplier invoices etc. should be listed. (5)
  • Key parties listed should be the sales person, the sales manager, the controller, the controller’s supervisor or manager, IT in the case of automated notifications, customs controller, tariff specialist, customs manager, origin export controller and his/her manager. (10)
  • Important to see that there is an R for each activity. No marks are given, but if no R’s, a mark should be subtracted.
  • There should not be more than one A per activity. No marks given, but subtracted if there isn’t an A assigned or more than one A.
  • Reasons for each role assigned should be justified and in line with the theory. Allocate marks for the top 5 activities and roles assigned. Half a mark a role. (8)

Question 6:

The learner should demonstrate knowledge that the client relationship has been harmed and that all the activities in the immediate future should be geared towards saving the relationship by demonstrating real value to the client.(5)

Question 7:

The learner should demonstrate an understanding that different departments in an organisation have touch points with freight forwarders and that these departments often have conflicting requirements. (5)

Question 8:

The learner should list the 10 elements with reasons for each as well as the best suited weighting criteria. (30)

The following elements should be included due to the nature of the cargo:

  • Experience in handling high value cargo
  • A regular consolidation service ex Paris
  • Owned office in Paris
  • Carrier relationship in place
  • Customs expertise
  • Customs penalties
  • C-TPAT member
  • Security measures in place at orgin and destination warehouse
  • Financial stability to cater for large disbursements
  • Part 108 certification
  • TAPA certification
  • ISO 9000
  • Cargo insurance coverage
  • Insurance claim procedure
  • YTD insurance claim records
  • KPIs

Question 9:

The learner should be able to explain why some elements should have a heavier weighting than others as well as what should be considered in deciding the weighting criteria. (5)

Question 10:

A. The learner should benchmark the services they provide against the 10 selection criteria identified in question 8. The freight forwarder will either measure up or not. There should be a conclusion drawn whether the freight forwarder is the best fit for the client’s requirements. (12)

B. The learner should evaluate the existing relationship against criteria such as length of relationship, global or local, if there is integration, whether it is a partner relationship or a vendor, if any IP is provided by the freight forwarder, if there is a contract in place, what the impact will be on the client if the relationship is terminated and the ease of moving to another freight forwarder. (8)

Question 11:

The learner should demonstrate an understanding of the relationship between these elements. Selection criteria is an indication of the service requirements, verification measurements could result in KPIs that will give rise to the creation of SOPs to ensure that the KPIs are met. The SLA will detail the services provided as well as the responsibilities and KPIs. (5)

Question 12:

The learner should list the 3 elements and explain the reasons for the inclusion of each of the elements. One mark should be given for the opinion provided by the learner. (10)

Question 13:

The learner should be able to provide practical KPIs for each of the 10 selected criteria. KPIs should be relevant to the element and easily measurable. (10)