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Movement is also considered a waste in JIT philosophy; therefore, it can be said that transportation itself is a waste and should be reduced or eliminated. A way to reduce transportation significantly is to either operate near your suppliers or insist that your suppliers have a facility near you. For example, suppose you manufacture stereos in Charlotte, North Carolina, and the speaker supplier is in Los Angeles; the average transit time to get speakers from Los Angeles to North Carolina is two days, and you pay for this. However, if you work a deal to have the supplier inventory speakers in a warehouse two blocks away from your manufacturing facility, you may now receive a pallet of speakers in 30 minutes, as opposed to an entire truckload in two days. You may pay more for the speakers, but reduce TC due to a reduction in transportation costs.
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