Logistics and Supply Chain System in the European Union and Its Application in Zara - Research Paper Example

With the advent of time and increasing trend of globalisation across the world, the trade barriers are fading out and favourable trade policies are promoting fast and quick exchange of goods and services (European Commission, 2010). Due to globalisation, all communication procedures have also increased their pace and this world is now considered a global village which has no boundaries or barriers of communication present. Globalisation has also increased the level of competition amongst firms, and all businesses strive in one way or the other to gain a strong competitive edge.

The latest trend in the market is a creation of an integrated logistics and supply chain infrastructure that is supported by the technologically advanced systems such as SAP, Enterprise Resource Planning (ERP), E-Retailing, Radio Frequency Identification (RFID) and many more (European Logistics Report, 2012). All leading corporations that are operating on an international level have ensured that they have a well-coordinated Supply Chain Management and Logistics system that will employ the best systems for procurement, warehousing, inventory management, storage and inbound and outbound logistics (Johnson & Turner, 2006).

A systematic logistics and supply chain management system ensure that products are manufactured according to the requirements and in a systematic mode as well. In high demand seasons, if the supply chain is running in a systematic mode, the organisation can successfully meet its demands without any loopholes or any compromises in quality. This reflects upon the fact that a proper and systematic supply chain management system can prove to be highly advantageous for the organisation.