Final answer:
A total cost approach can help reduce costs and improve customer service by working closely with the supply chain.
Step-by-step explanation:
A total cost approach can reveal that it is indeed possible to both reduce costs and improve customer service by closely working with other members of the supply chain. By analyzing the total cost involved in the entire supply chain process, including procurement, production, transportation, and inventory management, businesses can identify areas for cost reduction and efficiency improvement. Collaborating and coordinating with suppliers, distributors, and other supply chain partners can lead to better coordination, shorter lead times, lower transportation costs, and improved overall customer service.
Indeed, a total cost approach could reveal that it is possible to reduce costs and improve customer service by closely working with other members of the supply chain. Companies can leverage advancements in technology, cooperation in transportation methods, and robust policies to improve efficiencies and maintain supply chains during emergencies. For instance, when a messenger company benefits from lower gasoline prices, it can deliver its services more cost-effectively, expand its service area, and potentially improve customer satisfaction due to a broader reach and better supply chain management.