An example of how companies can revamp their value chain to reduce costs is to
A)have suppliers locate their plants close to companies' own facilities.
B)continue to utilize traditional methods of distribution and sales.
C)not make any changes in product manufacturing but change end distribution methods.
D)increase extra services to increase staffing requirements.
E)facilitate the learning curve by providing superior training to new employees.

Question

Quizplus · Accepted Answer

By having suppliers locate their plants close to companies' own facilities, companies can reduce transportation costs and increase efficiency in the supply chain. This can result in cost savings for both the company and the supplier. Other options listed in the answer choices do not necessarily focus on reducing costs in the value chain.

An Example of How Companies Can Revamp Their Value Chain