Lean Supply Chain Management Research Assignment Paper

Lean Supply Chain
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Lean Supply Chain
Purchasing transportation services accounts for a large part of the product’s cost component. It is thus essential that purchasing agents be aware of the ways to reduce the cost without compromising on the quality of service. One of the ways through which a purchasing agent can reduce this cost is through increasing the volume. A higher volume means that the business is able to get better rates. According to Monczka, Handfield, Giunipero, & Patterson (2011), substantial and real cost and service improvement can be achieved with an increased volume of transportation between business units, facilities, and divisions. This allows for purchasing leverage. In addition, with bridging together of outbound traffic volumes and inbound traffic volumes, significant costs reduction can be achieved without compromising on the service level.
Another way through which a purchasing agent can reduce the cost is through the consolidation of carriers for t...