The importance of locally commanded design for the consolidation of local supply chain: the concept of design headquarters

This paper discusses the extent of the adoption of some operations best practices in the Brazilian automobile industry. A survey and extensive case studies were conducted. Adoption of operations best practices is more widely spread among first and second tier suppliers than in lower levels. There is a strong relation between local product development and the integration of local autoparts producers. In new condominiums, suppliers' facilities add low value, most of the value is added in mother plants. The level of innovation activities and its influence in the incorporation of local firms in the productive chain is discussed.

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