Case Study of Custom Fabricators, Inc. From Lean Manufacturing Partner to Contract Manufacturer Case Study

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classical examples of some of the consequences that globalization has for some American companies. Indicated as one of Orleans's best supplier of different parts and accessories, used in the construction of elevators, Customs Fabricators Inc. faces the cheaper competition from Mexico. Orleans has decided to reduce its production costs and has organized an auction, where suppliers from Mexico are seen as favorites, due to their low costs. On the other hand, one of Customs's main advantages was its presence next to the Bedford plant, where some of the parts it used were produced. If a company from Mexico would be chosen, then there would be no legitimate reason for Orleans not to move the entire production facility to Mexico.

Ben's company crates value by supplying Orleans with parts and accessories. The distinct specialization of Ben's company ensures that the accessories and parts produced respond to the exact requirements from Orleans.

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Customs Fabricators has enjoyed over time an excellent business relationship with Orleans. The company's main competitive advantage was its location near the Bedford plant that supplied some of the parts needed in production. Additionally, the company had a group of employees that had in the past worked for Orleans and was thus familiar with the working and production process. Customs Fabrication had never had human resource related problems, had a stable social situation, with high pays for its workers.

3. It is most certain that Orleans' priorities have changed. In the past, Orleans was simply interested in providing the best products, price being a variable that was not taken into consideration.

However, globalization and the ease of access of foreign competitors on the U.S. market, many of them at much lower and competitive prices have brought Orleans in a situation where it needs….....

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