The use of logistical systems and supply chain of an international companys European supply chain business operations - Essay Example

Naude’s studies had reflected on the views of Wisner et al that discusses about the harmful effects that the production, packaging, movement, storage, repackaging and products of delivery might have on the environments. Thus the supply chain companies are concerned with the responsibility of reducing these effects thus focusing on a more green technology (Naude, 2009, p.96).

• More Technology-driven L&SC:

Studies also reveal the logistics and supply chain system in the recent times being more technology driven that is proven by the use of RFID or Radio Frequency Identification. RFID has proved to be beneficial in the management of inventory, visibility of assets having control over the data and thus focusing on an integrated approach (Thornton et al, 2006, p.182).

• More Agile and Responsive L&SC:

Waters in his studies had also focused on the importance of an agile and responsive logistics and supply chain system. He, in his studies mentioned about an European manufacturer who had made a statement on this factor and said, “We have realized the need to become more agile for years and have tried several things”, thus reflecting on the understanding that prevails in the industry (Waters, 2010, p.92).

• Pull-Push Strategies:

Depending on the needs and demands in the market, the supply chain systems also need to determine the push or pull strategies for their process, where the push strategy involves production decisions on long term concept and pull strategy is demand based. Often an integrated method combining both the strategies proves to be beneficial (Simchi-Levi, Kaminsky & Simchi-Levi, 2003, p.222).

• JIT, Kanban, Kaizen TQ Technologies Used in L&SC:

Plunkett (2009) had discussed certain relevant terms associated with the concept of logistics and supply chain. These include JIT or just-in-time referring to the availability of the supplied materials just in time or just before time. Kaizen is based on a Japanese concept and focuses on improvement in the production and management aspects delivering to the satisfaction of the customers. Kanban is similar to just-in-time concept of different parts and components of products.

• More Leaner SC:

Lean production involves an enhancement in the mass production of a particular product optimally making use of the supply chain system and logistics as well. Thus the above literature review provides with a detailed understanding of the concept of logistics and supply chain and other associated factors.

• EU Before 1992:

The European Union that was formed and had control over the business operations in the countries of Europe had posed several challenges from its effects of dominating the businesses. As Swann (2002, p.31) mentioned the country also started receiving threats from the US and the Japanese companies. Moreover, several economic challenges were encountered by the policy makers thus gradually leading to a decision making for a better state of the country.