Automotive supplier park strategies supporting build-to-order

Abstract

Build-to-order (BTO) is a production strategy that aligns to the demands of the 21st century where the industry is challenged to achieve flexibility from elongated supply chains that cross the globe and yet rely on inaccurate demand forecasts. A study of European manufacturers explores whether supplier parks are an essential part of BTO using a conceptual framework developed from the literature. The findings question the idea that simply locating suppliers close by to vehicle assembly plants reduces delivery lead time and inventory overall. The study finds that not all types of supplier parks are designed for BTO, where the cases reveal a wide variety of types, ranging in scale and proximity. The originality of the research is a unique study that redefines both automotive supplier park terminology and the relationships with BTO. © 2008 Springer-Verlag.