||High material and labor costs in comparison to low-cost regions however build to demand may provide total cost and competitive advantage.
||With the close proximity to the customer and the availability of component material, this model provides a high level of flexibility to react to fluctuations in a products demand profile.
||Efficient assembly lead-time with the ability to supply product direct from the factory to the customer provides a short lead time.
||Supply of product from within the region, reduces logistics and distribution costs.
||Management of generic components, demand planning, supply-on-demand and consigned inventory managements reduces inventory levels and risk.