International Trade and Supply Chain Integration Volkswagen

Volkswagen’s work process is developed on the concept of creating vehicles for mass consumers (Volkswagen, 2014). It has to be noted that Volkswagen has been awarded for its spending in the research and development process. The initial model for the supply chain of the business was focused on creating a chain process that connected all the operational process of the company. The supply chain process started with the R&amp.D results which set the objectives for the process of production, assembling and distribution (Volkswagen, 2014). However, with their expansion in the international market place, Volkswagen has also incorporated innovative technological resources for boosting up their production capability and reducing operational expenses.
The supply chain management process of Volkswagen is characterized by an array of technological resources and conceptual frameworks (Marcellus and Dada, 2006). Considering the diverse consumer groups and their needs, Volkswagen has increased the number of production units and distributors (Volkswagen, 2014). Unlike their previous model where production and assembling were done under a single roof, the new model of supply chain process has changed this process. Each of the major market segments has designated a number of assembling stores and distributor houses. The parts produced are sent into the assembling center based on the market demand for the product (Germain, Claycomb and Droge, 2008). This has allowed the company to control the production of units and align&nbsp.with the market demand developing a proper balance between production expenses and market demands. However, this process also increased the cost of logistics as regular input and output of produced parts was based on the changes in market demand. In order to control its transpiration cost, the company started building manufacturing units for each of the market segments (Stevenson, 2002). In the current scenario, Volkswagen has 18 manufacturing units all over the world situated in different geographical regions. These manufacturing units are managed in a decentralized manner for generating market specific operations (Volkswagen, 2014).&nbsp. &nbsp. &nbsp. &nbsp.