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Supplier parks are beginning to take hold in North America as automakers and their suppliers look to improve supply-chain efficiency and reduce costs.

Over the past decade, automotive supplier parks have proliferated in South America and Europe as automakers pursue a manufacturing value chain that is as lean and efficient as possible. Now the trend toward clustering key suppliers adjacent to, or close to, final assembly plants appears to be gaining popularity within North America.

So why are supplier parks springing up, or at least being strongly considered, at manufacturing sites across the U.S., Mexico, and Canada? Because OEMs-both domestic and transplant-and their suppliers hope to reap the rewards that the arrangement can offer. Some of the most cited benefits are improved vehicle quality, reduced inventories, better communication through the supply chain, increased flexibility and quicker response to customer preferences-and of course, cost savings.