Ethical Paper

3496 Words Jul 14th, 2014 14 Pages
McDonalds Social Responsibility Company X is a global producer of equipment for the food manufacturing industry and has production facilities spread all over the world but concentrated in northern Europe and the United States. Currently Company X has organized its production facilities so that each one is specialized in a type of equipment and that facility produces equipment to ship all over the globe as orders are received. The spare parts for the equipment are stored at either these production facilities or at a central warehouse located in Aarhus, Denmark. There are sales and service units (SSU’s) in approximately 30 countries that are responsible for customers on a local level. Each of these companies keeps a stock of spare …show more content…
The following is an analysis of the current situation at Company X and an assessment of the areas the company can improve its logistics handling in the US of both parts and equipment to reduce its carbon footprint and, in some cases, reduce costs as well. The major proposals for improvement are as follows: * Source parts locally rather than purchasing all parts from Company X’s European locations. * Ship parts via ground or boat rather than air. Stock levels for spare parts would need to be higher to ensure Company X could still successfully deliver to their customers. * Change Company X’s standard policy to ship customer spare parts orders complete, all in one package, rather than several smaller packages as the items become available. * Ship equipment partially assembled so it will be more compact to ship and then assemble it on site. * When possible, train production units closest to the customer site to manufacture equipment, rather than the specialized production unit system that Company X uses currently. * Purchase credits to offset the greenhouse emissions resulting from the air freight used by the company. Company X locations around the world:

Above is a chart of the Company X locations around the world.

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