Surviving Supply Chain Integration Strategies for Small Manufacturers (2000) / Chapter Skim
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10 Globalization and Proximity
10 Globalization and Proximity
Pages 89-91
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From page 89... ...
This support can take the form of overseas factories, warehouses, and distribution centers; the production of parts with metric dimensions; certification to international standards; learning to work effectively with other cultures; the use of communications systems that transcend global distances; and the use of modern transportation methods. SMEs may also have to expand their own supply chains internationally, procuring goods and services wherever they can be most competitively obtained.
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From page 90... ...
Geographic proximity may involve locating supplier facilities adjacent to OEM operations. For example, long-term relations between beverage producers and container manufacturers led container suppliers to locate their fabrication plants adjacent to breweries.
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From page 91... ...
Some of the problems of distance can be overcome by means of electronic systems, such as e-mail, electronic data exchange, and video conferencing, which can provide some of the benefits of proximity at lower cost. Supply chains in the computer industry, for instance, are typically geographically scattered and have little organizational or cultural proximity, but they do have close electronic proximity.
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