Maquiladoras operations along the Mexico‐US border are an oft‐studied example of a lean supply chain strategy that allows US manufacturers to benefit from lower labour costs in Mexico while being able to supply to assembly plants in the industrial US Midwest, with a minimum of safety stock. This study examines an alternative strategy of the subsidiary of a North American automotive parts producer, which purchases raw and semi‐finished materials from approved North American automotive 2nd tier suppliers, manages the shipment of the materials to a plant in Thailand where the semi‐finished materials are converted in a labour‐intensive process into higher‐value sub‐assemblies. These sub‐assemblies are then shipped back to the US for installation into automobiles at an assembly plant in the Detroit area.