Managing Inward Value Chain in UK Manufacturing Industry

This report discusses the challenges faced by the UK manufacturing industry in managing the value chain and the importance of sustainability. It also provides recommendations for business managers to effectively exploit sustainable opportunities in the global supply chain.

Managing Inward Value
Chain

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Literature Review ............................................................................................................................3
Country Case .........................................................................................................................5
Industry case...........................................................................................................................6
Conclusion and recommendation.....................................................................................................7
References .......................................................................................................................................9

Introduction
Proper management of value chain is inclusive of process related to monitoring and
managing of all the essential factors which are inclusive of manufacturing including
procurement, production, distribution and quality control to successfully operate business
activities in any industry (Zhou, Awasthi and Stal-Le Cardinal, 2021). It is essential for an
organization to have a value chain with a step by step business model in order to effectively
enhance overall business efficiency to deliver best value to end consumers. It is essential for an
organization to emphasise upon different factors of value chain such as operations, marketing,
outbound logistics, inbound logistics sales and services while focus on procurement and
purchasing, technological, development human resource management and infrastructure.
Furthermore it has been underlined that successful value chain management needs effective
collaboration and coordination technology investment leadership organizational process and
other elements.
Present report is conducted to identify challenges and change prevailing in international
supply chain in addition with the importance of sustainability. To conduct present research report
the selected country is United Kingdom. While in context with industry manufacturing industry
of United Kingdom is being selected. It has been analysed that this industry is facing challenges
in context of lack of collaboration between partners, as most of the organisations underestimate
the importance of technology to exploit the opportunities in the global supply chain. In addition
to this companies in this sector are also facing increasing cost of raw materials and procurement
from different suppliers around the globe due to number of factors such as COVID-19, Brexit
and more. This enhances the importance of sustainability in which with the help of low energy
consumption. decrease in manufacturing time and use of less material with strong supply chain
network will benefit this industry to conduct successful business operations.
Main Body
Literature Review
To assure success in business it is essential for organization to conduct the process of
procurement of product with strong supply chain network. It has been analysed that in
manufacturing industry in the provinces of United Kingdom organization are going through
number of challenges which is affecting their ability to conduct business roles and

responsibilities (Agnolucci and Arvanitopoulos, 2019). Some of these challenges are lack of
collaboration between partners, inability of organization to implement the use of technology to
conduct fast and easy operations in global supply chain, negligence of sustainability and more. It
has been analysed according to the viewpoint of that sustainability plays important role in
today’s business environment for organization as it allows them to reduce negative impact of
their business operations on environment. In context with manufacturing industry sustainability
is the creation of manufactured products with the help of economically sound products which
helps in minimising the negative environmental impact while conserving natural resources and
energy. The government of United Kingdom implemented various laws and policies associated
to sustainability in which it is important for organisations in this industry to emphasise on in
order to successfully conduct their roles and responsibilities without facing legal obligation
(Babkin, Tashenova, Smirnova and Burkaltseva, 2020). The emerging trend in this sector is
green manufacturing process in this organization can generate electricity, fuel or heat from
renewable resources with the help of solar wind, biomass, hydropower, geothermal and landfill
gas and simple solid waste. In addition to this organizations in this sector are also having
opportunity to implement the use of smart manufacturing process. This is basically a
technological driven approach which helps organization to undertake advantage of internet
connected machinery to duly monitor the production process.
It has been analysed that technology is playing important role especially in manufacturing
industry organization with the help of taking use of technology such as Internet of Things,
artificial intelligence, cloud computing can undertake smart manufacturing technological driven
approach in order to conduct fast and feasible business operation in low cost (Vrchota, Rolínek,
and Bednář, 2020). It also help organization to implement the use of sustainable practices to
make improvement in their manufacturing process.
Furthermore it has been analysed that the current trend in this industry is integration of smart
digital technologies and manufacturing and emphasise on machine learning automation and real
time data. This is helping organization in this industry to have a strong and effective global
supply chain network which not only helping them to conduct cost effective business operation
but also allow them to assure higher growth and sustainability in industry (Tseng, 2021). It has
been analysed that sustainable manufacturing is among one of the most important and essential

trend to successfully conduct operation. In this manufacturing organization in United Kingdom
needs to recognise the environmental responsibility. It has been analysed that the government of
United Kingdom implemented different type of legal obligation laws which is essential to
consider for organization in all level of the cycle of products that are manufactured. This
effectively helps in making identification of the environmental impact of manufacturing activity
to attain the goal of sustainability (Kolesnikov, 2020). With help of emphasising on the recent
trends in manufacturing industry in the provinces of United Kingdom sustainable manufacturing
or green manufacturing organization can implement the methods of manufacturing which helps
in reducing waste and the environmental impacts. Organisations with the help of developing
goals and adopting practices conduct product designing, process design and operational
principles in effective manner. Sustainable manufacturing is mainly a system which integrate
product and process design issues with the issue of planning, manufacturing and control in such a
way to make identification quantification and management of the flow of environmental. In this
this will help organization to reduce the environmental impact in effective manner. Along with
this there are different type of sustainable manufacturing tools which help organization to
conduct operations in effective manner. In addition to this there are different type of technologies
prevailing that can be implemented by manufacturing industries in the provinces of United
Kingdom to conduct operations in a well defined and effective manner (Furstenau, 2020). It has
been analysed that United Kingdom government to consider energy use reduction, water use
reduction, emission reduction and waste generation production. In this organization with the help
of integrating sustainable activities at the all level of manufacturing such a system product and
process can conduct their operations on global scale in effective manner. With the help of this
company can have opportunity to help have access of global supply chain network which will
benefit them to conduct business operations on global scale effectively.
Country Case
According to UK Manufacturing Statistics, (2022), the UK manufacturing output is on
rise as its fastest rate since the year 2008. This was reported through the consecutive year of
growth reported by the UK region. It is being said that the UK industrial sector has shown a
significant growth by 1.4% a year since 1948. Furthermore, it is being discussed that respective
country invests a rationale amount of resources along with dedicated efforts towards regulating
growth of the industry in the regional country. The manufacturing industry in the UK region

have gained a 18% of global market share which is also the largest Europe and second to the US.
As the given industry shows a 39% growth since the year 2010 it have displayed a wider
potential in the UK market to ensure approaching growth with regards to development of the UK
economy (UK Manufacturing Statistics, 2022).
From the analysis of the literature, it can be said that the provided region of the UK
operates several manufacturing industry. Such industries are one of the major contributors to the
GDP of the country and also provides with futuristic opportunity for the company. The country
dedicated decent amount of its resources for which coordinated terms of working in the region.
The industries in the region plays a major role that displays its effective findings towards
maintaining better terms of growth and development of the region and provide a competitive
base of working throughout the international market region.
Industry case
According to article published in BBC news, (2022), UK car production drops as firms
struggle to get parts. In the stated article the production of care under manufacturing process had
shown a significant decrease and also have created issues with regards to global supply chain
problems. The provided article displays information with regards to 100,000 less cars that were
built in the first three months of 2022 being compared to last year. It is being observed that
manufactures in the region are facing issues with regards to struggling for holding of parts that
was needed. In addition to this, the closure of Honda's plant in Swidon last year also have
contributed towards steep reduction in the number of cars exported to US. The literature presents
better findings towards the downfall of the industry with reflecting to external forces present in
the UK country (UK car production drops as firms struggle to get parts, 2022).
From the analysis of the literature presented, it can be evaluated that there were several
reasons of the downfall in the manufacturing industries in the UK which were considered. It can
be said that exports to the US also shown a greater decrease for its valuable contribution towards
the manufacturing industry productivity. Moreover, better understandings with regards to
working of the industry in the UK region was being concentrated on external forces that had a
crucial role in influencing on productivity of the industry. The respective industry in the region
had being exposed to var0ious external factors including the impact of COVID-19, post Brexit
and the latest war between Russia and Ukraine. This had immensely affected the growth rate of
the industry since the past years and have created negative impact over the productive

development of an economy. The outcome of the industry was tagged under ineffective terms of
flexibility of the industry in terms of adopting to changes in business environment in the region.
Therefore, it can be analysed from the literature that provided industry is facing issues with
regards to its downfall in the growth rate. Although the provided industry considers the
opportunity for the economy under which coordinated growth of the region can be ensured
through rationale investment and dedicated efforts made by the stakeholders of the region.
Conclusion and recommendation
Conclusion
It has been analysed that organization in manufacturing sector in the provinces of United
Kingdom are facing number of issues and challenges due to number of factors such as outbreak
of COVID-19 and Brexit which lead to cause economical an operational issues. In this to
successfully operate roles and responsibilities in industry it is essential for companies to exploit
the opportunities in a global supply chain network. This is one of the best way to attract and
develop relationship with global suppliers to have easy access of materials which helps in
conducting manufacturing process effectively. In this it is essential to emphasise on certain
trends that are sustainability, use of digital technology and more. With the help taking use digital
technologies and practice and conducting manufacturing process with the help of green
sustainable goals organizations in this industrial sector can assure long term sustainability is
strong global supply chain network and higher profitability.
Recommendation
It has been analysed that manufacturing industry in the provinces of United Kingdom are facing
number of challenges which are affecting the growth and ability to conduct operations. In this in
order to effectively exploit sustainable opportunities in global supply chain mentioned below
there are some certain recommended practices according to the future trend which is essential for
business managers in respective industry to follow:
 Business managers in this industry are recommended to take advantage of Internet of
Things in which interconnected device can be utilised in manufacturing and supply chain
network. This will allow organization to leverage the data collection and data chasing
with the help of smart sensors and machine which helps in conducting cost effective
operations with high collaboration.

 Sustainability is among one emerging trend of manufacturing industry in the provinces of
United Kingdom. In this business managers are recommended to implement smart visions
to undertake the use of more sustainable products. This will help organization to reduce
negative environmental impacts while conserving energy and natural resources.

References
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Babkin, A., Tashenova, L., Smirnova, O. and Burkaltseva, D., 2020, October. Analyzing the
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Kolesnikov, A.V and et. al., 2020. Global trends of the digital economy development. Opción:
Revista de Ciencias Humanas y Sociales, (26), pp.523-540.
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UK car production drops as firms struggle to get parts, 2022. Available at:
https://www.bbc.com/news/business-61248689
UK manufacturing output at its highest for 10 years, 2018. Available at:
https://www.bbc.com/news/business-42633502