That oversimplified thinking is now being challenged, partly by the rising costs of energy and carbon emissions but also by a
greater recognition of the productivity cost of highly dispersed production systems and the hidden costs of distant procurement
discussed earlier. Wal-Mart, for example, is increasingly sourcing produce for its food sections from local farms near its
warehouses. It has discovered that the savings on transportation costs and the ability to restock in smaller quantities more than
offset the lower prices of industrial farms farther away. Nestlé is establishing smaller plants closer to its markets and stepping
up efforts to maximize the use of locally available materials.