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Canadian automotive supplier Magna International Inc. sees local strategy and efficiency improvements as key cost-saving measures within its supply chain. Localization was one of three trends within Magna’s supply chain identified by Carrie Van Ess, vice president of procurement for the Americas, at the 2014 Management Briefing Seminars. A new supply chain model is emerging, she said, in which “goods are produced, sold and consumed in the same geographic region.”

“This doesn’t mean that we’re not out there looking for the next area of global advantage,” she said. “What it does mean is that we’re looking closer to home first.”

Based in suburban Toronto, Magna controls one of the automotive supply industry’s most diverse product portfolios, including a variety of plastic parts and components.

Localization brings cost-savings across the supply chain, especially in light of climbing costs in traditionally low-cost regions, Van Ess said. Magna also is working to improve efficiency through packaging improvements and creative management of shipments.

Magna ranks No. 3 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $34.3 billion in 2013.