Supplier Selection for Distributed Manufacturing Supplier selection is the process of identifying, evaluating, approving, and managing organizations that provide materials, components, manufacturing services, equipment, software, logistics, inspection, repair, or other capabilities within a distributed manufacturing network. The goal is not simply to find the lowest-price supplier. A suitable supplier must be able to support the required work: -
At the required quality -
At the required volume -
Within the required lead time -
Under appropriate technical and regulatory controls -
With sufficient financial and operational stability -
At an acceptable total cost -
Without creating unacceptable network risk Supplier selection may involve: In distributed manufacturing, supplier selection must consider both the individual supplier and the effect that supplier has on the wider production network. Why Supplier Selection Matters A distributed manufacturing network depends on the quality and reliability of its supplier relationships. A poor supplier decision can cause: A supplier may appear attractive because of price, location, equipment, or sales responsiveness while lacking the systems required for reliable long-term performance. Supplier selection should therefore be based on verified evidence rather than marketing claims or quotation alone. Supplier Selection Is Broader Than Facility Selection Supplier selection evaluates the organization that provides the product or service. Facility selection evaluates the specific location where work is performed. One supplier may operate: -
Several factories -
Multiple warehouses -
Regional offices -
Different subcontracting relationships -
Separate information systems -
Distinct quality certifications The supplier may be commercially acceptable while one of its facilities remains unsuitable for a particular product. For important work, organizations should evaluate both: -
The supplier organization -
The exact facility, process, or service location involved Begin with a Clear Requirement Supplier selection should begin with a precise understanding of what is being purchased. The requirement may include: -
Product or service description -
Material specification -
Manufacturing process -
Technical performance -
Dimensions and tolerances -
Production volume -
Lead time -
Quality requirements -
Inspection -
Traceability -
Packaging -
Regulatory requirements -
Cybersecurity -
Data access -
Geographic constraints -
Customer-specific conditions An unclear requirement produces inconsistent quotations and unreliable comparisons. Define the Supplier’s Role Each supplier should perform a defined role within the manufacturing network. Possible roles include: -
Primary source -
Secondary source -
Backup source -
Strategic partner -
Transactional supplier -
Specialized processor -
Regional supplier -
Emergency supplier -
Logistics provider -
Inspection provider -
Technology provider The selection criteria should reflect the role. A primary supplier may require high capacity and long-term stability. A backup supplier may require independence from the primary source and rapid activation. A strategic supplier may need deeper engineering collaboration and shared planning. Strategic Suppliers Strategic suppliers support capabilities or products that are important to the organization’s long-term performance. They may contribute to: -
Product development -
Process design -
Capacity planning -
Cost improvement -
Risk reduction -
Innovation -
Regional expansion -
Business continuity Strategic relationships usually require: Transactional Suppliers Transactional suppliers provide clearly defined products or services that can be sourced competitively. They may be appropriate when: -
Requirements are standardized -
Switching costs are low -
Several qualified sources exist -
Product risk is limited -
The relationship requires little technical collaboration Transactional does not mean unimportant. The level of qualification should still reflect the consequences of supplier failure. Critical Suppliers A critical supplier is one whose failure would significantly affect: -
Safety -
Quality -
Production continuity -
Regulatory compliance -
Customer operations -
Revenue -
Brand reputation Criticality may result from: -
Unique capability -
Long qualification time -
Sole-source status -
Long material lead time -
High switching cost -
Regulatory approval -
Difficult transportation -
Proprietary technology Critical suppliers require stronger qualification, monitoring, and continuity planning. Define Mandatory and Preferred Criteria Selection criteria should be divided into mandatory and preferred requirements. Mandatory Criteria Mandatory criteria must be satisfied before a supplier can be approved. Examples may include: Preferred Criteria Preferred criteria improve the supplier’s suitability but may not be absolute requirements. Examples may include: Separating mandatory and preferred criteria prevents attractive secondary benefits from hiding essential gaps. Technical Capability The supplier must demonstrate that it can provide the required product, process, or service. The assessment may include: -
Manufacturing methods -
Equipment -
Materials -
Dimensions -
Tolerances -
Surface requirements -
Testing -
Inspection -
Engineering support -
Production volume -
Secondary operations Technical capability should be matched to the actual requirement. A supplier may be highly capable in one process or material and unsuitable in another. Product and Industry Experience Relevant experience can reduce technical and regulatory risk. The organization may evaluate whether the supplier has experience with: -
Similar products -
Similar materials -
Similar production volumes -
Comparable tolerances -
The same industry -
Similar regulatory requirements -
Comparable customer expectations Experience is useful evidence, but it should not replace product-specific qualification. Quality Management System The supplier’s quality-management system should be appropriate for the risk and complexity of the work. Evaluation may include: -
Document control -
Training -
Supplier control -
Material control -
Process control -
Inspection -
Calibration -
Nonconformance -
Corrective action -
Audits -
Management review -
Traceability -
Record retention Formal certification may support the assessment, but certification alone does not prove that the supplier can meet a particular product requirement. Quality Performance Historical quality performance may include: The data should be current, relevant, and verifiable. Strong performance on simple products may not predict success on technically demanding work. Delivery Performance Delivery performance should be evaluated through evidence rather than promises. Useful measures may include: A supplier that quotes a short lead time but frequently misses commitments may create greater total cost than a slower but reliable source. Capacity The supplier should have sufficient available and qualified capacity. Capacity evaluation should consider: -
Current workload -
Existing commitments -
Equipment availability -
Workforce -
Material access -
Tooling -
Inspection -
Maintenance -
Shift structure -
Seasonal demand The organization should distinguish among: -
Nominal capacity -
Demonstrated capacity -
Available capacity -
Qualified capacity -
Reserved capacity -
Surge capacity Scalability A supplier should be evaluated for its ability to support future demand. Scaling may depend on: -
Additional shifts -
Hiring -
New equipment -
Facility space -
Material availability -
Working capital -
Tooling -
Inspection capacity -
Supplier development The supplier should provide realistic evidence rather than unsupported growth projections. Financial Stability Supplier financial health can affect: -
Material purchasing -
Staffing -
Maintenance -
Quality -
Delivery -
Investment -
Business continuity Financial review may consider: -
Revenue stability -
Profitability -
Cash flow -
Debt -
Customer concentration -
Credit history -
Ownership -
Legal disputes -
Insurance -
Investment needs The depth of the review should reflect supplier criticality. Working Capital Some suppliers, particularly smaller manufacturers, may face working-capital pressure when required to purchase materials or labor before payment. The organization should consider: -
Payment terms -
Deposit requirements -
Material financing -
Minimum order quantities -
Customer concentration -
Cash-flow sensitivity Unrealistic payment terms can weaken otherwise capable suppliers and create delivery risk. Management Capability Supplier performance depends heavily on management quality. The supplier should demonstrate the ability to: Warning signs may include: Workforce Capability The supplier should have sufficient qualified personnel. The assessment may consider: -
Operator skills -
Engineering -
Quality staff -
Maintenance -
Supervisors -
Training -
Certifications -
Turnover -
Absenteeism -
Cross-training -
Language capability Dependence on one specialist may create a significant continuity risk. Material Sources The supplier’s material sources should be understood. The assessment may address: -
Approved suppliers -
Specifications -
Country of origin -
Lead times -
Minimum orders -
Lot control -
Certificates -
Substitution controls -
Storage -
Shelf life A supplier may appear independent while relying on the same material source as other network participants. Lower-Tier Suppliers Direct suppliers often depend on subcontractors and upstream suppliers. These may include: -
Raw-material producers -
Heat-treatment providers -
Coating suppliers -
Toolmakers -
Testing laboratories -
Packaging suppliers -
Logistics providers The organization should determine: -
Which lower-tier suppliers are critical -
Whether they are qualified -
Where they are located -
Whether substitutions are controlled -
Whether the direct supplier can replace them -
Whether several suppliers share the same source Subcontracting Control The supplier should disclose which activities are subcontracted. The organization should know: -
What work is subcontracted -
Who performs it -
Where it occurs -
Which data is shared -
How subcontractors are qualified -
How changes are approved -
How traceability is maintained -
Whether prior approval is required Unauthorized subcontracting can create quality, regulatory, security, and intellectual-property risk. Geographic Location Supplier location influences: -
Lead time -
Transportation -
Customs -
Tariffs -
Customer support -
Regional risk -
Communication -
Labor -
Regulation Geography should support the network’s strategic objective. A low-cost distant supplier may create excessive logistics or geopolitical risk. A local supplier may improve response while lacking required scale. Geographic Diversification When selecting multiple sources, organizations should determine whether the suppliers are genuinely geographically independent. Several suppliers may still share: -
The same region -
Port -
Power grid -
Transportation corridor -
Labor market -
Material source -
Political exposure Geographic diversification should reduce meaningful common risk. Logistics Capability The supplier should be able to support required shipping and handling. Evaluation may include: -
Packaging -
Labeling -
Carrier access -
Freight experience -
Customs documentation -
Shipment tracking -
Export preparation -
Damage prevention -
Emergency shipping -
Reverse logistics Logistics performance should be included in total supplier evaluation. Regulatory Compliance The supplier must be able to meet applicable legal and regulatory requirements. These may involve: -
Product safety -
Industry regulation -
Environmental law -
Worker safety -
Customs -
Export controls -
Sanctions -
Data protection -
Chemical restrictions -
Country-of-origin rules -
Record retention For regulated products, approval may be limited to a specific facility, process, or product. Certifications Certifications may provide evidence of system maturity or market eligibility. The organization should verify: -
Scope -
Facility address -
Status -
Expiration -
Issuing body -
Exclusions -
Audit history A certificate may not cover the product, process, or facility under consideration. Cybersecurity Suppliers may receive sensitive: -
Product designs -
Production schedules -
Customer information -
Forecasts -
Quality records -
Software -
Machine programs Cybersecurity evaluation may address: Security requirements should reflect the sensitivity and criticality of the information. Intellectual-Property Protection The supplier should be able to protect: -
Product designs -
Process information -
Tooling -
Software -
Customer information -
Production quantities -
Commercial plans Controls may include: Unauthorized Production A supplier with access to product information may be technically able to produce unauthorized quantities. Controls may include: -
Formal production orders -
Quantity limits -
Serial or lot records -
Material reconciliation -
Shipment reconciliation -
Restricted file access -
Audit rights -
Licensing terms Unauthorized production creates commercial, regulatory, safety, and brand risk. Data Ownership Supplier relationships generate and exchange data. The organization should define ownership and access for: -
Product files -
Process records -
Machine data -
Inspection results -
Tooling designs -
Production history -
Supplier performance -
Improvement ideas Agreements should state: -
Who owns the data -
How it may be used -
How long it may be retained -
Whether it may be used for analytics -
Whether it may be shared -
How it will be returned or deleted Business Continuity Critical suppliers should have continuity plans for: The organization should evaluate whether the plan is: Insurance Appropriate insurance may include: -
General liability -
Product liability -
Professional liability -
Cyber coverage -
Property -
Business interruption -
Cargo -
Workers’ compensation -
Recall coverage Coverage limits, exclusions, and geographic scope should match the supplier’s role and risk. Safety Performance The supplier should demonstrate appropriate worker and process safety. Evaluation may include: Unsafe operations may indicate broader management-control weaknesses. Ethical and Labor Practices Supplier selection should consider: -
Forced labor -
Child labor -
Working hours -
Wages -
Discrimination -
Worker treatment -
Health and safety -
Grievance processes The purchasing organization may face legal and reputational consequences for misconduct within its supply network. Environmental Performance Environmental evaluation may include: -
Energy use -
Emissions -
Waste -
Water -
Hazardous materials -
Recycling -
Permits -
Spills -
Environmental reporting -
Remediation history Environmental claims should be supported by evidence. Sustainability Sustainability should be assessed across the complete supplier relationship. Considerations may include: A nearby supplier is not automatically more sustainable, and a distant supplier is not automatically less sustainable. Communication Effective supplier relationships depend on reliable communication. The assessment may consider: A supplier that hides problems creates greater risk than one that reports them early. Cultural Alignment Useful characteristics may include: Cultural fit is especially important for strategic suppliers. Innovation Capability Some suppliers may contribute to: -
Product design -
Material selection -
Process improvement -
Cost reduction -
Automation -
Tooling -
Sustainability -
New technology Innovation capability should be evaluated where it supports the organization’s strategy. The ownership of resulting intellectual property should be defined. Digital Maturity Digital maturity may affect how well the supplier integrates into the network. Relevant capabilities may include: -
Enterprise resource planning -
Manufacturing execution systems -
Quality systems -
Supplier portals -
Production tracking -
Digital work instructions -
Machine connectivity -
Secure collaboration -
Data export Advanced systems are not always required. Reliable and controlled information exchange is required. Interoperability The supplier should be able to exchange required information using agreed: -
Product identifiers -
Revisions -
File formats -
Units -
Data fields -
Quality records -
Shipping records -
Traceability formats Controlled manual methods may be acceptable when direct digital integration is not practical. Cost Evaluation Supplier selection should consider total cost rather than quoted unit price alone. Total cost may include: -
Unit price -
Tooling -
Setup -
Qualification -
Inspection -
Packaging -
Transportation -
Customs -
Inventory -
Quality failures -
Engineering support -
Data integration -
Supplier management -
Risk -
Production transfer A higher-price supplier may provide lower total cost through stronger quality, shorter lead time, or greater reliability. Commercial Terms Commercial evaluation may include: -
Pricing -
Price-adjustment methods -
Payment terms -
Minimum order quantity -
Tooling ownership -
Capacity commitments -
Forecast requirements -
Cancellation rights -
Warranty -
Liability -
Termination -
Confidentiality -
Intellectual property -
Audit rights Commercial terms should support the intended relationship. Currency, Tax, and Trade Risk International suppliers may introduce: -
Exchange-rate exposure -
Tariffs -
Duties -
Taxes -
Customs valuation -
Rules of origin -
Sanctions -
Trade restrictions These factors can change rapidly and should be included in sourcing decisions. Supplier Independence When selecting multiple suppliers for resilience, the organization should determine whether they are genuinely independent. Suppliers may share: -
Ownership -
Materials -
Subcontractors -
Equipment support -
Software -
Logistics routes -
Financing -
Regional infrastructure Apparent multi-sourcing may still contain a major common dependency. Primary Supplier Selection A primary supplier normally supports routine demand. Important factors may include: -
Stable quality -
Reliable delivery -
Available capacity -
Competitive total cost -
Strong management -
Material access -
Scalability -
Long-term stability Secondary Supplier Selection A secondary supplier may support: -
Additional capacity -
Regional demand -
Competitive leverage -
Risk reduction -
Product segmentation The organization should define whether the secondary supplier will receive regular production or remain inactive. Backup Supplier Selection A backup supplier should be selected according to recovery objectives. Important factors may include: A supplier that has never produced the product may provide limited immediate resilience. Sole-Source Suppliers Some capabilities may be available from only one practical supplier. Sole sourcing may result from: Sole-source risk may be reduced through: -
Long-term agreements -
Strategic inventory -
Tooling ownership -
Technical-data access -
Supplier development -
Continuity planning -
Design alternatives Local and Regional Suppliers Local and regional suppliers may provide: -
Shorter communication paths -
Faster delivery -
Easier audits -
Customer proximity -
Regional economic participation -
Better emergency response They may also face limitations involving: -
Capacity -
Process range -
Capital -
Certifications -
Workforce -
Material access Selection should remain evidence-based. Supplier Diversity A broader supplier base may improve access, competition, innovation, and regional participation. Diversity initiatives should be integrated with: -
Technical qualification -
Supplier development -
Clear requirements -
Fair evaluation -
Performance support Participation should expand opportunity without reducing necessary quality or safety controls. Supplier Development A promising supplier may not initially meet every preferred requirement. Supplier development may address: -
Quality systems -
Training -
Inspection -
Cybersecurity -
Capacity -
Documentation -
Process control -
Digital integration Development should be based on: Create a Supplier Scorecard A scorecard can help compare suppliers consistently. Possible categories include: -
Technical capability -
Quality -
Delivery -
Capacity -
Cost -
Financial stability -
Cybersecurity -
Regulatory compliance -
Sustainability -
Communication -
Innovation -
Resilience -
Strategic fit Scores should be supported by evidence. Weight Criteria According to Risk Weights should reflect the supplier’s role. For example: -
Quality may carry greater weight for safety-critical components. -
Capacity may carry greater weight for high-volume supply. -
Geography may carry greater weight for resilience. -
Cybersecurity may carry greater weight for sensitive data. -
Lead time may carry greater weight for service parts. -
Innovation may carry greater weight for development partners. Weights should be defined before final selection. Conduct Preliminary Screening Preliminary screening may include: The goal is to remove unsuitable candidates before deeper assessment. Request Information Consistently Suppliers should receive consistent: -
Technical requirements -
Volumes -
Quality expectations -
Delivery assumptions -
Commercial templates -
Data requirements Inconsistent requests make quotations difficult to compare. Conduct an Audit An audit may be appropriate for critical or high-risk suppliers. The audit may review: -
Management -
Quality -
Production -
Materials -
Maintenance -
Calibration -
Inspection -
Training -
Cybersecurity -
Safety -
Subcontracting -
Business continuity The auditor should compare written procedures with actual practice. Review Evidence Useful evidence may include: -
Production records -
Performance data -
Audit reports -
Training records -
Calibration records -
Maintenance history -
Corrective actions -
Certifications -
Financial documents -
Continuity test results Evidence should be current and relevant. Request Samples Sample production may be used to evaluate: -
Technical capability -
Material control -
Inspection -
Documentation -
Packaging -
Communication Samples should use representative production conditions. A special prototype produced outside normal controls may not demonstrate routine capability. Conduct First-Article Approval First-article approval may confirm: -
Product dimensions -
Materials -
Processes -
Functional performance -
Documentation -
Traceability -
Packaging First-article success is an important step but does not prove long-term reliability. Run a Pilot Order A pilot order should test the complete supplier relationship. It may evaluate: -
Order processing -
Engineering review -
Material sourcing -
Production planning -
Change control -
Quality -
Records -
Delivery -
Invoicing -
Corrective action The pilot should resemble normal production. Perform Risk Analysis Supplier risk analysis may examine: -
Technical risk -
Quality risk -
Capacity risk -
Financial risk -
Cybersecurity risk -
Geographic risk -
Regulatory risk -
Logistics risk -
Ethical risk -
Continuity risk Each major risk should have: -
An owner -
Mitigation -
Monitoring -
Response plan Compare Suppliers at the Network Level The best individual supplier may not create the best network. The organization should ask: -
Does the supplier add unique capability? -
Does it reduce concentration? -
Does it share dependencies with existing suppliers? -
Does it improve regional coverage? -
Can it support production transfer? -
Does it increase unnecessary complexity? -
Does it improve total cost and resilience? Define Approval Status Suppliers may be assigned different approval levels. Identified The supplier appears to offer relevant capability. Screened Basic commercial and technical information has been reviewed. Qualified The supplier meets defined general requirements. Product-Approved The supplier is approved for a specific product or service. Production-Ready The supplier has current information, materials, tooling, workforce, and capacity. Emergency-Ready The supplier can respond within a defined activation period. Approval status should be current and visible. Define the Scope of Approval Approval may be limited to: -
Specific products -
Facilities -
Processes -
Materials -
Equipment -
Volumes -
Regions -
Customers -
Time periods A supplier should not assume that approval applies to all of its operations. Establish Corrective Actions Supplier evaluations may identify gaps requiring correction. Examples include: Corrective actions should include: -
Required action -
Owner -
Due date -
Evidence -
Approval authority Mandatory gaps should be closed before full approval. Negotiate Agreements Supplier agreements may address: -
Scope -
Pricing -
Delivery -
Capacity -
Forecasts -
Quality -
Materials -
Tooling -
Intellectual property -
Confidentiality -
Data ownership -
Subcontracting -
Insurance -
Liability -
Audit rights -
Termination -
Dispute resolution The agreement should match the supplier’s actual role and risk. Establish a Quality Agreement A separate quality agreement may define: -
Product requirements -
Inspection -
Records -
Change notification -
Nonconformance -
Corrective action -
Traceability -
Deviations -
Recalls -
Audit rights -
Retention Quality responsibilities should be explicit. Onboard the Supplier Supplier onboarding may include: -
Product training -
Technical requirements -
Quality expectations -
Cybersecurity -
System access -
Production authorization -
Reporting -
Logistics -
Contacts -
Escalation -
Performance measures Onboarding should ensure that the supplier understands both the product and its role within the network. Monitor Performance Ongoing supplier monitoring may include: -
Quality -
Delivery -
Cost -
Capacity -
Responsiveness -
Corrective action -
Cybersecurity -
Financial health -
Regulatory status -
Sustainability -
Ownership changes -
Lower-tier risk Critical suppliers should receive more frequent review. Use Supplier Scorecards Carefully Scorecards can support performance management, but they should not reduce complex supplier performance to one unexplained number. A useful scorecard should: -
Show category-level results -
Use reliable data -
Identify trends -
Separate critical failures from minor issues -
Support corrective action -
Reflect supplier role Conduct Periodic Reviews Supplier reviews may address: Strategic suppliers may require executive-level reviews. Requalify When Conditions Change Requalification may be required when the supplier changes: -
Ownership -
Facility -
Equipment -
Process -
Material source -
Subcontractor -
Software -
Quality system -
Workforce -
Regulatory status The supplier should be required to notify the organization of defined changes. Suspend or Remove Suppliers A supplier may need to be suspended or removed because of: The network should have clear suspension, recovery, and removal procedures. Common Supplier-Selection Mistakes Selecting by Lowest Price Unit price may ignore quality, logistics, inventory, qualification, and risk. Approving the Company Without Evaluating the Facility Different locations may have different capability and control. Relying Only on Certification Certification does not prove product-specific performance. Confusing Capability with Capacity A supplier may be able to perform the work but lack availability. Ignoring Lower-Tier Suppliers Critical risks may exist below the direct supplier. Assuming Multiple Suppliers Create Resilience Several suppliers may depend on the same material, region, or subcontractor. Failing to Define the Supplier’s Role Selection criteria should reflect whether the supplier is primary, backup, strategic, or transactional. Underestimating Cybersecurity A physically capable supplier may expose sensitive information. Using Inconsistent Quotation Requests Suppliers cannot be compared fairly when assumptions differ. Treating Approval as Permanent Supplier conditions and risks change over time. Supplier-Selection Questions Before approving a supplier, the organization should ask: -
What role will the supplier perform? -
Does the supplier understand the requirement? -
Does it have demonstrated technical capability? -
Is sufficient qualified capacity available? -
Are quality controls effective? -
Are materials and lower-tier sources understood? -
Which activities are subcontracted? -
Is delivery performance reliable? -
Is the supplier financially stable? -
Are cybersecurity controls appropriate? -
Are intellectual-property protections sufficient? -
Is the supplier legally and regulatorily eligible? -
Does it support the network’s geographic strategy? -
Does it share critical dependencies with existing sources? -
Can it support production transfer? -
What evidence supports approval? A Practical Supplier-Selection Process 1. Define the Requirement Document the technical, quality, volume, delivery, security, commercial, and regulatory needs. 2. Define the Supplier Role Determine whether the supplier will serve as a primary, secondary, backup, strategic, regional, or emergency source. 3. Establish Selection Criteria Separate mandatory requirements from preferred features. 4. Identify Candidates Use existing relationships, industry networks, regional organizations, platforms, referrals, and market research. 5. Conduct Preliminary Screening Review capability, certification, capacity, financial status, cybersecurity, geography, and major risks. 6. Assess the Supplier Evaluate management, quality, workforce, materials, lower-tier suppliers, security, logistics, and continuity. 7. Review Evidence Verify performance, training, calibration, maintenance, audit, financial, and continuity records. 8. Conduct Sample or Pilot Production Test the product and the operating relationship under representative conditions. 9. Evaluate Total Cost and Risk Compare full network impact rather than unit price alone. 10. Approve with Defined Scope Document products, facilities, processes, materials, volumes, and approval conditions. 11. Contract and Onboard Establish commercial, quality, information, logistics, and governance requirements. 12. Monitor and Requalify Review performance and respond to significant changes. Minimum Supplier Approval Requirements Before a supplier begins critical production, the organization should have: -
A clearly defined supplier role -
Verified legal identity -
Demonstrated technical capability -
Confirmed available capacity -
Effective quality controls -
Approved materials and sources -
Identified lower-tier dependencies -
Adequate traceability -
Appropriate cybersecurity and intellectual-property controls -
Suitable regulatory status -
Financial and operational stability -
Defined subcontracting rules -
Reliable logistics -
Clear contractual responsibilities -
Successful sample or pilot production -
Documented approval scope -
Ongoing monitoring requirements A Working Definition DistributedManufacturing.info defines supplier selection as: The structured process of identifying, evaluating, qualifying, approving, contracting, and monitoring organizations that provide products, materials, services, technologies, or manufacturing capabilities within a distributed production network. The best supplier is not necessarily the closest, largest, most automated, or least expensive. It is the supplier that can perform its assigned role reliably, securely, legally, and economically while strengthening the capability and resilience of the complete manufacturing network. | 