What strategy might the procurement professional consider?

A procurement professional is tasked with optimizing logistics processes for an organization where extended transportation pipelines are causing concerns about product obsolescence and increased inventory holding costs.

What strategy might the procurement professional consider?
A . Increasing transportation costs to expedite product delivery
B . Purchasing inventory from high-wage economies
C . Reducing the transportation pipeline length by sourcing products locally
D . Expanding the organization’s capital equipment capacity

View Answer

Answer: C

Explanation:

Sourcing locally shortens the transportation pipeline, reduces inventory holding costs, and minimizes the risk of product obsolescence. [P-11]