Idar Nouti, EMBA

Most supply chain managers spend a lot of their time looking for ways to reduce costs. But one of the big challenges with supply chains is that things are often interconnected, so making a change in one area to lower costs can cause a change somewhere else that actually increases the cost. That’s not to say that you shouldn’t look for cost-savings opportunities, but you need to understand how the system works to ensure that you aren’t creating new problems in the process. There are four decisions areas that drive most of the costs in any supply chain: Procurement Costs, Inventory Costs, Transportation Costs, and Quality Costs.

Source: Supply Chain Management for Dummies by Daniel Stanton

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Procurement Foundry