Industrial Collaboration Project Assignment Sample
Supply chain management is one of the significant strategies in business management in terms of maintaining efficiency of organisational domain with unaffected profitability factors. In the United Kingdom, automobile companies are the fastest-growing industrial companies.
Thus, strong support is required to establish the UK’s automobile industry base. As per global data, the “Automotive industry suppliers” in the United Kingdom added value of 4.2 billion GBP in 2020 rather than 4.9 billion GBP in 2017 (Statista.com, 2022).http://Industrial Collaboration Project Assignment Sample
Thus, there is a potential challenge in management of logistics and procurement in the automobile industry domain in the UK. Logistics and procurement management tends to enhance efficiency as well as profitability factors in the specific industry in terms of implementing a secured network of supply chains around the country and outside of it.
The “logistics and procurement chain” tends to source raw materials needed for manufacturing automobiles. Thus, a strong and supportive supply chain network is needed to build for purchasing raw materials, auxiliary supplies and manufacturing automobiles.
However, proper management of these fields is required to manage production level of the automobile companies to align with demand range in the target market segment.
1.1 Rationale
This paper will be based on research proposal regarding analysis of the importance of procurement and logistics management for effective growth of automobile industry in the market segment of the United Kingdom.
Besides, challenges of logistics and procurement management will be developed in this part to ensure development of management strategies and mitigation strategies to overcome the adversities.
1.2 Research aim
There will be two aims of the project which will help the research to establish an impactful concluding statement regarding the effect of logistics and procurement management on the automobile industry in the United Kingdom.
Primary aim: The research will focus on the impact of supply chain management, and production range of the automobile industry in the United Kingdom to manage the market demand in the domestic market segment.
Secondary aim: The project will focus on administrative support and information technology implementation in the automobile sector of the UK for its development.
1.3 Research objectives
The objectives of the research work will be,
- To find out the impact of supply chain management, production range, administrative support and information technology on the automobile industry of the UK.
- To focus on adversities and challenges of supply chain management, production range, administrative support and information technology in the automobile industry of the UK.
- To strategize mitigation strategies to manage adversities in the automobile sector of the UK.
2.0 Literature review
2.1 Importance of logistics and procurement management for automobile industry in the UK
In terms of achieving competitive advantages in the market segment, automobile companies in the United Kingdom tend to incorporate effective “logistics and procurement management” strategies.
These management strategies are helpful to enhance production frequency of the companies with enhanced profitability factors. Management of two fields has several positive aspects, which are directly aligned with the establishment of an effective network of supply chains with enhanced profitability factors.
- Inventory management: Management of logistics is directly associated with inventory management of the automobile companies in the United Kingdom. In terms of implementing proper logistics and procurement management strategies, companies can analyse historical data in terms of determining the factors which are profitable for the organisational domains (Waters, 2019).http://Industrial Collaboration Project Assignment Sample
In terms of proper inventory management, the major automobile companies in the UK have achieved an effective market retention rate for managing customer demand in the domestic market segment. Furthermore, effective software tracking can be implemented for automated inventory management.
As the supply chain and production frequency are managed and properly aligned with market demand, upward growth of the company with its profitability factors can be seen in automobile industrial domain in the UK.
- Minimising mean warehouse time: In terms of managing logistics for automobile companies, mean warehouse time is effectively decreased, which can be positively aligned with the upward trend of automobile market.
According to Qamar et al. (2020), as mean warehouse time is diminished significantly, production frequency can be emphasized, which effectively has potential to enhance profitability factors. On the basis of on-time analytics and backup planning, risk management strategies can be developed and implemented in the organisational domains.
- Work order development: As procurement management is aligned with the companies, it helps to build an effective environment for development of work orders. As raw materials and other sources are managed to bring under an effective chain of management,
it can develop high frequency of production, which can be aligned with demand range in the market segment. Thus, according to Qamar et al. (2020), customers are satisfied and brand values are enhanced effectively in the target market segment of the United Kingdom.
- Global supply chain development: Global network of supply chain management is an important factor for expanding business models throughout the United Kingdom. Under the hood of supply chain management (SCM), the automobile industry in the UK can be aligned with the global and local market segments to maintain market demand.
Through effective logistics and procurement management, automobile companies can develop a strong network of supply chains to meet the demand range of customer domains in the UK and in a global aspect.
- Increased profitability factors: Both the factors cumulatively tend to enhance profitability factors in the organisation or domain in terms of enhanced productivity range and customer satisfaction.
As effective procurement and logistics management tend to enhance work order in the companies, more automobiles are produced to meet customer demand. These factors effectively enhance profitability factors in the automobile companies in the UK.
All the above-mentioned factors are cumulatively managed through “logistics and procurement chain” management under the hood of automobile industry in the United Kingdom.
2.2 Challenges faced by logistics and procurement management in the UK
There are numerous adversities in terms of managing procurement and logistics in the automobile industries in the UK. The potential challenges and adversities in automobile companies tend to decrease productivity level of the companies which cannot be aligned properly with customer demand in the UK.
- Lack of improvement in supply chain management
The “Society of Motor Manufacturers and Traders” (SMMT) has indicated “Automotive renaissance” in the automobile market segment of the United Kingdom. Though the demand chain is high enough in the target market segment, production level is not aligned with the demand chain, which has caused potential adversities in automobile-producing companies in the UK.
This factor significantly forms huge pressure on the automatic supply chain, which can disrupt the entire industrial segment. Due to lack of modern equipment and automated techniques, tier 2 and 3 suppliers are disrupted by enhanced pressure on the market segment. Due to improper management of logistics and procurement, majority of the “original equipment manufacturers (OEM)” tend to export over 80% of automobile demand in the market segment.
Figure 2.1: Misalignment with production range and customer demand
(Source: Rane and Thakker, 2020)
- Vehicle assembly lines
In terms of keeping the operations in-house, majority of the car manufacturers build of tendency to establish vehicle assembly lines under the hood of organisational domains. Thus, effective network of supply chain management cannot be developed in the market segment of the UK.
Hence, logistics and procurement cannot be managed in a proper way and market demand cannot be maintained with enhanced productivity range. These factors eventually lead to diminished profitability factors of the car manufacturers in the UK. According to Morganti and Browne (2018), modern technological aspects are the major threat factors for automobile industry regarding “In-line vehicle sequencing (ILVS)”.
As the production lines are not maintained properly through the lack of management skills, it can develop numerous adverse factors, such as lowered efficiency and profitability factors in the automobile sector.
- 3PLs
Third-party logistics and transport services (3PLs) can act as hindrances while managing logistics and procurement. Enhanced demand as per market demand can lay adverse effects on profitability factors of the automobile companies in the UK.
High risk of theft, backdated ranges of equipment, high taxation, high probability of damage, and restricted accessibility of raw materials can be potential issues for establishment of effective logistics and procurement management under the hood of automobile industries in the UK.
2.3 Mitigation strategies for proper management
Some effects of strategies can be aligned with the management strategies to ensure achievement of high effectiveness and profitability factors in the market segment of the United Kingdom.
- Budget utilisation: Approximate cost management in the supply chain management is analysed and planned accordingly and those can be implemented in logistics and procurement management in automobile industries (Kamble et al. 2021).http://Industrial Collaboration Project Assignment Sample Besides, cost reduction strategies are implemented with a cost-reduction roadmap. In terms of establishing “strategic supplier partnerships”, contract length can be elongated and threshold level for production can be enhanced.
All the factors cumulatively help in the enhancement of profitability factors.
- Sustainable development: Blueprints of cost-effective models can be aligned with procurement and logistics management to enhance profitability factors.
As per the modern world trends, sustainable development plans are developed and implemented in procurement and logistics management to cope with market demand in the United Kingdom.
- Top-down and bottom-up models: in terms of implementing the global model of supply chain management of automobile companies in the UK, both top-down and bottom-up approaches can be incorporated into the organizational domains (Kamble et al. 2021). http://Industrial Collaboration Project Assignment SampleIn terms of aligning the “senior leadership management chain” in procurement and logistics management, efficiency of the companies can be enhanced significantly with boosted profitability factors in the market segment.
2.4 Theoretical underpinning
The research proposal regarding management of logistics and procurement and its impact on automobile industry in the United Kingdom can be aligned with a theoretical model in terms of reflecting its justification.
The proposal can be developed on Strategic Choice Theory, which can be aligned with efficient management strategies in the automobile industry of the UK. Four prime domains are there in the theoretical model, which are,
- Evaluation (Semanticscholar.org, 2022)
- Strategic action (Semanticscholar.org, 2022)
- Level of efficiency (Semanticscholar.org, 2022)
- Company performance (Semanticscholar.org, 2022)
All the segments can be allowed in a particular order to evaluate the effectiveness of management strategies regarding procurement and logistics in the automobile industry in the United Kingdom.
Figure 2.2: Strategic Choice Theory
(Source: Semanticscholar.org, 2022)
2.5 Conceptual framework
Figure 2.3: Conceptual framework
2.6 Research gap
In each and every existing research project there are some unsolved queries and while this happens in secondary research works that means there is some pre-existing lack of knowledge or studies which may be responsible for carrying out those gaps in present research work.
As per this proposal, this is aimed to gather information and make analytical study over those counsels as this is a secondary research-based study. The primary gap is inadequate information about procurement management and logistics in the UK in automobile industries. This is in the aspect of enough theoretical and also statistical data and that is the main acceleration behind this approach to select this particular segment for research.
3. 0 Methodology
This chapter helps to know about the methods that will take into account in this research approach. This research will be constructed over the secondary data from pre-existing research works. This will be an inductive approach along with a qualitative analysis. Pre-existing studies will be gathered from verified and authorised resources.
All secondary research ethics will be considered throughout the research work. A quality research review work will be generated in a constructive way.
Some secondary research ethical considerations will be-
- Data will be kept confidential before release.
- Study subject assent will be presumed reasonably.
- Using pre-existing data will not create any distress or damage.
As per this proposal, research work will construct on the collected data and what clearly describes this research will come along with interpretive research philosophy. As with other secondary studies, this came with good interpretation and understanding of the pre-existing studies.
4.0 Expected outcome
As per this proposal, this research work will help to mitigate the existing research gap. As mentioned earlier, there is a scarcity of existing data and most of the data is outdated. This research work will make a proper construction of data from recent years and will analyse them in a constructive way.
That will help readers to gather enough information and knowledge from this research work. If this proposal will not be granted this can not attend the aim to make an analytical study on the present situation of the procurement management and logistics in the UK in their automobile industries.
5.0 Conclusion
From this overall proposal, this can be concluded that this study is aimed to know about the remarkable business management strategies and preserve coherence at the organisational level.
The current procurement management and logistics of the automobile industries in the United Kingdom will be analysed with adequate data in this research work. This research work will be portrayed in a constructive way with an inductive approach via qualitative analysis with collected data. This will show its sagacity in academic measurements with assorted data and information without distressing all ethical considerations.
References
Kamble, S.S., Gunasekaran, A., Subramanian, N., Ghadge, A., Belhadi, A. and Venkatesh, M., 2021. Blockchain technology’s impact on supply chain integration and sustainable supply chain performance: Evidence from the automotive industry. Annals of Operations Research, pp.1-26.
Morganti, E. and Browne, M., 2018. Technical and operational obstacles to the adoption of electric vans in France and the UK: An operator perspective. Transport Policy, 63, pp.90-97.
Olatunji, O.O., Ayo, O.O., Akinlabi, S., Ishola, F., Madushele, N. and Adedeji, P.A., 2019. Competitive advantage of carbon efficient supply chain in manufacturing industry. Journal of Cleaner Production, 238, p.117937.
Qamar, A., Hall, M.A., Chicksand, D. and Collinson, S., 2020. Quality and flexibility performance trade-offs between lean and agile manufacturing firms in the automotive industry. Production Planning & Control, 31(9), pp.723-738.
Rane, S.B. and Thakker, S.V., 2020. Green procurement process model based on blockchain–IoT integrated architecture for a sustainable business. Management of Environmental Quality: An International Journal.
Upadhyay, A., Ayodele, J.O., Kumar, A. and Garza-Reyes, J.A., 2020. A review of challenges and opportunities of blockchain adoption for operational excellence in the UK automotive industry. Journal of Global Operations and Strategic Sourcing.
Waters, D., 2019. Supply chain management: An introduction to logistics. Bloomsbury Publishing.
