Supply Chain In Automobile Industry Essay

The automobile industry consists of different manufacturing processes and systems .Thus a final assembled product consists of different components which undergo through different processes. Thus decisions made by a company related to its supply chain may affect the workers and also help other companies adopt the same model. Automobile industry players source their materials and components from various sources. Thus the issue of an effective and sustainable supply chain is becoming increasingly important. Thus there is an increasing risk of disrupting as the supply chain is being operated at a global scale. Also as many of the companies are operating from the developing countries of the world, there is an increasing set of regulations and compliances related to environmental pollution. Thus the manufacturers have to keep a check on the carbon emission that their products are creating. Thus the issue of a greener supply chain has become an important consideration for the automobile manufacturers around the world. The procurement of raw materials and components need to be conducive to a greener environment. The ancillary manufacturers and the original equipment manufacturers need to work in tandem to to ensure that every part of the process is sustainable.

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The automotive industry is the largest single manufacturing sector in the world and thus consumes nearly 16% of the world’s steel, 30% aluminum, 5%plastic and significant proportions of other materials such as rubber, copper. Thus the problem of recycling of these is a significant challenge. The auto industry has to look for measures to facilitate production and procurement of raw materials such that the disposal of the products become environment friendly and less toxic. This would make their efforts towards sustainability stronger and the supply chain