The relationship between proximate supply and build-to-order capability

Purpose – To investigate the opportunities provided by proximate supply to support build‐to‐order (BTO) capability and to provide empirical analysis to identify the extent to which supplier parks as a means of facilitating proximate supply can improve supply chain performance and enhance BTO capability in the automotive sector.Design/methodology/approach – A case‐based approach was employed to analyse the relationship between proximate supply and BTO.Findings – The key results of the research demonstrate how proximate supply in the automotive sector achieved through the presence of supplier parks situated adjacent or close to vehicle assembly plants, has provided the means for moving the customer‐order decoupling point upstream and, therefore, increase the percentage of a vehicle that is BTO. BTO is generally regarded as a qualitative concept yet the results are demonstrated by adopting measures that act as a proxy for building to a unique order. In addition, first‐rate performance is seen to be achieved ...

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