Auto Supply Chain in England - Research Paper Example

Auto Supply Chain in England Introduction Current automobile policies that promote manufacturing of carbon emission-free vehicles in the UK have greatly affected the industry’s supply chain network. The supply chain network faces vast challenges resulting from poor transport logistics, weak suppliers that lack innovativeness, and the introduction of new automobile regulations. It is imperative that England automobile industry participants establish an efficient supply chain that focus on competing in the global market.

Transport Logistics Efficient automobile chain supply system is attainable because of close proximity to major export and import zones. Proximity to export and import zones reduces logistics costs. It is imperative that automobile companies in England establish centralized locations to help in managing current economic issues. Management of Nissan’s British factory, for instance, has established the manufacturing company in Sunderland to improve on transport logistics. William, 2007, reports that success of Nissan Company relied on the company’s choice of location and ease of supply chain.

Location of Nissan close to deep-sea port enabled the company to transport its cars to suppliers and customers at a relatively low cost.Improved accessibility to exporting zones greatly helps England automobile industries to mitigate challenges related trucks shortages and inadequate supply of fuel for transport of vehicles. Automobile companies should further adopt a focused lean logistics superhighway to assist in the delivery of manufacturing materials to factories. The efficient outbound logistics would also improve export of manufactured automobiles to international markets.

Weak Domestic Supply Chain According to the UK automobile Council, 2013, weak domestic supply is a cause of decline in the growth of automobile industry. The council’s report asserts that the country must have a strong automobile supply chain to improve the automobile industry. Automobile companies, however, must be vigilant for suppliers commanding a significant share of market’s profit. Innovation and Technology IssuesAccording to UK automobile council, companies must establish new supply chains that would help in introducing modern cars as opposed to powered by traditional diesel engine and petrol.

Innovation and technology, being a vital contemporary issue, aim at minimizing carbon emissions from use of traditional fuels. It is imperative that UK supply chain network remain strong, skillful, and efficient to foster new automobile industry initiatives.ReferencesUnited Kingdom Automobile Council. (July 2013). Driving Success – A Strategy for Growth and Sustainability in the UK Automotive Sector. Retrieved October 12, 2014 from, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/211901/13-975-driving-success-uk-automotive-strategy-for-growth-and-sustainability.

pdfWilliams, M. (2007). Chief Finds Success Along Nissan Way. Manufacturing, 86 (3), 28-31. doi:10.1049/me:20070309