In the context of Qmont Mining, what is a possible action to address spending on transportation?

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Negotiating lower rates with existing air transport suppliers is a viable strategy to effectively manage and reduce spending on transportation. By engaging in negotiations, Qmont Mining can take advantage of its existing relationships with current suppliers, leveraging their business volume to secure better rates. This approach not only helps to lower costs but also maintains the service quality and reliability of transportation, which is critical in the mining industry where timely material delivery can impact operations significantly.

Establishing partnerships with local suppliers may offer benefits related to local sourcing but does not directly address the immediate cost of transportation with existing suppliers. Outsourcing all logistics functions could lead to a loss of control over transportation aspects and could potentially increase costs if not managed effectively. Eliminating transportation is impractical for a mining operation, as transportation is essential for moving materials and products. Therefore, focusing on negotiations with existing providers helps to strike a balance between cost efficiency and operational effectiveness.

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