
405Why Integration Is Difcult
Proximity
There is also the issue of proximity. Some companies try to reduce the physical separation
from customers or suppliers. This is especially true in the global marketplace. Suppliers
nd it benecial to be close to their customers. This means automobile parts suppliers
tend to congregate around their large customers’ assembly plants. It also means many
companies establish offshore operations to be closer to their existing, or planned, mar-
kets. Examples of this include the experiments by automobile manufacturers to locate
their suppliers within the same facility as the assembly operations. This approach ai ...