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Proximity as a key factor to narrow the relationship between supplier and its customer – a case study in the auto industry

Independent Journal of Management & Production

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Title Proximity as a key factor to narrow the relationship between supplier and its customer – a case study in the auto industry
 
Creator Takeno, Fabio Yukio
Lucato, Wagner Cezar
Vanalle, Rosangela Maria
Vieira Júnior, Milton
 
Subject Operations management
JIT, proximity, lean supply, automotive industry
 
Description Themodern literature shows that the Just in Time (JIT) utilization in therelationship between client and its supplier aims at optimizing the flow in thesupply chain. Nevertheless, there are other aspects to be considered for thefull utilization of the lean supply practices. Among those, the proximity triesto improve the liaison between the client and its provider of materials andcomponents as a possible response to an increasing competitiveness level. Toexplore this subject this work had the objective of evaluating the determinantfactors that could possibly explain the partial relocation of a manufacturingfacility to create proximity conditions with one of its clients. For thatpurpose, a case study was developed in which a Brazilian auto partsmanufacturing company belonging to the first tier of the automotive supplychain was considered. As a result of such study, it was possible to concludethat the strategic advantages resulting from the proximity overpassed theconventional reasoning of considering financial gains as a key factor tojustify such a decision. In fact, the cost savings obtained with the plant relocationwere not enough to justify the investment made.
 
Publisher Independent
 
Contributor UNINOVE
 
Date 2015-12-01
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
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Format application/pdf
text/html
 
Identifier http://www.ijmp.jor.br/index.php/ijmp/article/view/341
10.14807/ijmp.v6i4.341
 
Source Independent Journal of Management & Production; Vol 6, No 4 (2015): Independent Journal of Management & Production; 962-972
2236-269X
 
Language eng
 
Relation http://www.ijmp.jor.br/index.php/ijmp/article/view/341/263
http://www.ijmp.jor.br/index.php/ijmp/article/view/341/482
http://www.ijmp.jor.br/index.php/ijmp/article/downloadSuppFile/341/114
http://www.ijmp.jor.br/index.php/ijmp/article/downloadSuppFile/341/115