Lean supply chains tend to favor scale. In this way they can take advantage of economies-of-scale when working with overseas suppliers and then working with logistics companies to move goods from suppliers to their destination.

The problem with the large-scale-view of supply chains is that it often eliminates smaller boutique suppliers and in the online retail business this can limit the product line. The reason is that smaller boutique supplies are a costly addition to the product line.

But Amazon has just taken a different direction.

Amazon has started a logistics company that specifically focus on working with overseas boutique suppliers, consolidating shipments from these suppliers and, in the process, offering products to their shoppers only available at domestic boutique retailers who charge high prices.

One belt which sells for $400 at a boutique clothing store, but sells in small volume, can now be purchased from a boutique manufacturer in China, consolidated with other boutique purchases and shipped to Amazon distribution centers across the world. The retail cost on their site, $125.

What is the message.

The usual focus of Lean is to maximize efficiency. But this often limits choice to a select few strategic supply chain partners capable of delivering high volume at low cost. If the objective is broadened to also consider revenue, it may be appropriate to incur slightly higher supply chain costs. The net of higher supply chain costs with increased revenues can improve the shopping experience, bring in new customers and improve the online retailers brand.