Cost minimization aims to achieve the most cost effective way of delivering goods and services to the required level of quality. Approaches to cost minimization can be strategic, focusing on core activities versus outsourcing, or tactical, focusing on supplier choice and stock holding. Potential sources of cost reduction include eliminating waste, simplifying processes, outsourcing non-core activities, and negotiating better supplier pricing. Benefits include lower unit costs and higher profits, though insufficient capacity or surprising other departments are potential problems.