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This news article was originally written in Spanish. It has been automatically translated for your convenience. Reasonable efforts have been made to provide an accurate translation, however, no automated translation is perfect nor is it intended to replace a human translator. The original article in Spanish can be viewed at Conclusiones del estudio de multilocalización productiva y recomendaciones
Special multilocalización

Conclusions of the study of productive multilocalización and recommendations

01/04/2006
As conclusions of the study we must highlight firstly the effect it has and will have the European enlargement in Spanish companies in industrial subcontracting:
European enlargement is part of the continuous change of scenario in which the subcontractor business activity takes place. It is necessary to recognize the effort of adaptation and improvement that made by the Spanish industrial companies.

• European enlargement will mean the reduction of production of mature also mature products (car) economies and confirms the strategy of presence multilocalizada of large enterprises and groups linked to the contract.

• As a result, the enterprise subcontractor must measure offer the importance of attention to the client and, therefore, its ability to be placed near the same.

• But, in addition, the displacement of its main client will cause two types of effects: comparative advantage: based on the price differential

• Learning: it will generate a park of suppliers of proximity

• Displacement: it will generate a range of suppliers that can reach the mature markets and in which there is a consolidated position of the Spanish subcontractors.

Industrial subcontracting firms must bet by technology, quality and international presence as unquestionable features of their offerings.

But what strategies can be taken before the EU enlargement and the challenge of competitiveness?

• Innovation as a basis for business competitiveness

• Specialization and differentiation: product of higher value added

• Outsourcing of the processes of lower value: production and costs

• Distance between the supplier and the manufacturer: ensure attention.

• Alliances: re-dimensión of the resources of SMEs

• Alliances with the supplier with the manufacturer: critical supplier.

These strategies are interdependent and every company should assess in what situation is in every moment and in every market to adjust according to each situation.

The presented strategies panel embeds a number of factors that are indisputable and do not constitute a goal in itself: the quality and the service should be "zero defect", is taken for granted.

In this context, the multilocalización is an option that has to be analyzed by any company regardless of its size.

That Yes, must be approached with caution and prudence of who has limited resources, arises from the internal reflection and relies on the ability of the Organization itself to generate the arguments that their competitiveness is based.

That process should include:

• Clarity of objectives

• The role of the people: leadership and reconcile presences

• Credibility of the project

• Study: internal/external

• Selection of partners.

• Personnel: training, transfer and management

Finally, although it is difficult to establish recommendations, we venture to share the following:

There is a valid and unique strategy for all companies: each company must find its own model in which influences the characterization of the company, the sectoral environment and customers in which moves, its place in the pyramid of subcontractingthe achieved degree of internationalization and its possible critical vendor status.

Even so, the response strategy would include the definition of the following axes:

• Global innovation (processes, products, management), as basic substrate of enterprise competitiveness

• Specialization and differentiation, as the generators of a higher value-added product

• Outsourcing of processes or products of lesser value, positioning itself as a contractor

• The evaluation of the best location to ensure attention to the client, as physical proximity may be essential in some cases

• The optimal dimension in a context of presence multimercado, which can lead to strategies of cooperation or re-dimensión (fusion,...).

This panel of strategies would lead to a set of measures that dynamically maintains the competitiveness of the company and includes, among other decisions, from the production location. The multilocalización is, from this perspective, an option that should be appreciated. In the success of the same results key clarity in objectives, personal leadership, the credibility of the project, the study and analysis, the selection of partners and individuals to get involved.

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