Local Transport Plans

May 2001
Logistics & Transport Focus;May2001, Vol. 3 Issue 4, p14
Trade Publication
The attractions of low-cost sourcing and the relationships between service level, lead-time and inventory within the supply chain were discussed in this article. It is easy to see how the link between 90 percent saving in cost and a huge improvement in profit is made , but there are three key issues to note. These are the range of savings is up to 90 percent, competitiveness varies over time and the total acquisition cost. The operations strategy should be developed from the market and business requirements and defines how the operations of the business are to be structured, the core activities that must be retained and the policies on make versus buy. Unless a company is considering moving everything to a low-cost region, it must decide on the right products to move and the right level to move. Having decided what a company should and could transfer, the next stage considers where on company should consider sourcing from.


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