[10 marks] (b) Discuss two short term tactical cost reduction initiatives and two long-lerm strategic cost reduction approaches that should be adopted to achieve a reduction in supply chain costs.

This question is asking for a discussion of two short-term tactical cost reduction initiatives and two long-term strategic cost reduction approaches that can be adopted to reduce supply chain costs. <br /><br />Short-term tactical cost reduction initiatives are actions that can be taken quickly to reduce costs in the immediate future. These might include measures such as renegotiating contracts with suppliers for better prices, increasing efficiency in the warehouse through better organization or technology, or reducing packaging costs by changing suppliers.<br /><br />Long-term strategic cost reduction approaches, on the other hand, are strategies that are designed to reduce costs over a longer time frame. These might include measures such as investing in automation technology to reduce labor costs in the future, implementing a just-in-time inventory system to reduce holding costs, or developing strategic partnerships with suppliers to negotiate better long-term deals.<br /><br />In both cases, the goal is to reduce the overall costs of the supply chain, which can be achieved through a combination of tactical and strategic actions.