Abstract
M. Com. (Logistics Management)
The opening of the first dedicated Supplier Park by Seat adjacent to its Abrera
assembly facility in 1992, in many ways, marked the beginning of a global trend.
Since then, more than forty parks in various configurations have been established
around the world. Initially, this trend was mostly confined to Europe but the Supplier
Park concept quickly gained momentum in newly industrialised countries like Brazil
and, more recently, the USA and South Africa (Reichhart & Holweg, 2007: 52).
The world’s automotive industry is a vital part of the workings of the global economy
and the wellbeing of the world’s citizens (OICA, n.d.). According to the International
Organisation of Motor Vehicle Manufacturers (OICA, n.d.), the world’s automotive
industry manufactured over 66 million cars, vans, trucks and buses in 2005 which is
equivalent to a global turnover of close to € 2 trillion. If vehicle manufacturing were a
country, it would be the sixth largest economy in the world requiring the direct
employment of nearly eight million people in manufacturing the vehicles and the parts
that go into them. This is more than 5% of the world’s total manufacturing
employment. In addition to these direct employees, many more people are employed
indirectly in related manufacturing and service provision industries (OICA, n.d.).