Integrating local suppliers in a global supply network

Abstract

PurposeThe development of a local area supply chain network (LASCaN) is only as good as the skills and technological capabilities of the companies within that network. Recent studies have pointed to the lack of capability amongst local suppliers and hence many OEMs have now moved towards global supplier networks to meet demand. The purpose of this paper is to highlight the drivers which push companies to develop global supplier networks.Design/methodology/approachThrough the development of a case study approach, the paper chronicles the design, development and implementation of a supplier development programme (SDP). The programme is subsequently evaluated for its effectiveness in the subject company.FindingsThe LASCaN is evaluated rigorously and describes accurately the effectiveness of the system and how the integration of the LASCaN into the global network allows the company to meet the demands of a fluctuating, mass customised market.Originality/valueThe proposed SDP framework for the successful development of a LASCaN contributes to the existing knowledge base on supply chain systems and subsequently disseminates this information in order to provide impetus, guidance and support towards increasing the development of local suppliers in an attempt to move the UK SME sector towards world class manufacturing performance.