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This chapter focuses on what the authors judge to be the most significant feature of logistics strategy in North America, namely its greater attention to managing the supply chain. The North American Free Trade Agreement of 1993 has contributed to the redesign of supply chains. It has been particularly effective in increasing trade with Mexico, as both the physical and tariff barriers to trade with that country were the most pronounced prior to the agreement. Supply chain management programmes of leading-edge companies display certain common characteristics, the most significant of which are described here. The design of supply chains involves consideration of internal and external relationships among logistics processes and with manufacturing and marketing processes. The chapter considers two aspects of the integration of external supply chain relationships. The first is the outsourcing of logistics services. The second aspect is the general role of partnerships and alliances in the establishment of a supply chain structure.
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