Modular Value Chains. In this type of GVC, suppliers provide customized products based on customer specifications. According to Gereffi, G. (2005) suppliers in modular value chains tend to take full responsibility for the process technology and often use generic machinery that spreads investments across a large customer base. This is less costly for the lead firm and requires complex information sharing between supplier and buyer. However, the development of standards and codifications is very useful in managing this information sharing. 3. Relational value chains. How much more difficult it is to codify specifications for custom manufacturing companies depends on the relationship built on the assurance of the required supply. Therefore in this type of value chains reputation, social and spatial proximity are key factors for success. There is a high level of interdependence between buyers and suppliers. The cost of breaking this relationship and starting a new one is very high as building a trusting relationship can take a lot of time and process. Therefore it is expected to have limited suppliers in this type of value