Channel

Cluster Manufacturing: A Supply Chain Perspective

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Executive Summary

Supply chain management clusters are geographic concentrations of three or more companies directly involved in the upstream and downstream flows of products, services, finances and/or information from a source to a customer. Clusters extend downstream to channels and customers, as well as laterally to manufacturers of complementary products. They also extend to companies in industries related by skills, technologies or common inputs. Clusters exhibit some common characteristics: physical proximity; complementary core competencies; activity base; collective growth potential; competitive position; and industrial organization and coordinating mechanisms.

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