Glocalized Manufacturing – Local Supply Chains on a Global Scale and Changeable Technologies

Ronen Hadar, Arne Bilberg

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Abstract

The characteristics of manufacturing are changing. An analysis to indentify future Western European manufacturing challenges illustrated several important issues. Among them: global fragmentation of production and increase in back-shoring, increased individualization, the increasing effect of demand fluctuation and seasonality, the negative effects of over-optimization, and the scarcity of resources that will change the global footprint of manufacturing. These challenges illustrate the need for new competitive advantages for Western European manufacturers, namely responsiveness, scalability, and customization towards customers and consumers, even at the expense of current competitive advantages such as price reduction. The paper examines the opportunities and advantages in setting up a network of glocalized self-sufficient supply chains around an intelligent changeable production facility. In contrast to current global manufacturing that advocates mega-factories with global supply chains, this paper hypothesizes that in order to achieve competitive advantages in the future, manufacturers will have to decentralize their production globally with a local focus setup. At the center of this system is a changeable and reconfigurable production facility. This smaller but intelligent facility is able to completely supply a predefined market area. By doing so, manufacturers will be able to reduce lead time and forecasting periods, increase customization to particular markets, utilize local energy production, and rapidly respond to real-time demand changes.
Original languageEnglish
Publication date10. Jun 2012
Number of pages8
Publication statusPublished - 10. Jun 2012
EventFAIM: Flexibe Automation and Intelligent Manufacturing - Helsinki, Finland
Duration: 10. Jun 201213. Jun 2012
Conference number: 22

Conference

ConferenceFAIM
Number22
Country/TerritoryFinland
CityHelsinki
Period10/06/201213/06/2012

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