St. Onge Company’s Tom Schaefges recently published an article in Logistics Management in which he argues that supplier distance should be treated as a strategic network-design variable, not simply a geographic or freight-cost consideration. He discusses how longer supply lines can increase inventory, working capital, risk, and lead times, while closer suppliers can improve agility and responsiveness—but the optimal distance depends on each company’s cost, service, and risk priorities. Ultimately, Tom explains that companies should use total cost-to-serve and network optimization to intentionally balance proximity, cost, flexibility, and resilience.
 
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