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Jaguar Land Rover
Jaguar land Rover (JLR) is a British based multinational automotive firm that designs, manufactures, designs and sells luxurious and high performing automotive (Jaguar.co.uk, n.d.). Incorporated in 2008, the company is a subsidiary of Tata motors an Indian based car manufacturer whose headquarters are in Coventry, United Kingdom (Jaguar.co.uk, n.d.). Land Rover and Jaguar were acquired from Ford making a single successful company that has prospered in coming up with innovative technologies and prestigious and much loved car brands. Jaguar operations began in 1922 when the company commenced on creating motorcycle side cars. The company later began producing automotives and changed its name to Jaguar after the end of the Second World War when it was producing sports cars and premium saloons (Jaguar.co.uk, n.d.). At the same time, Rover was inspired by American Jeep to produce all terrain vehicles.
The first land Rover was rustproof and light weight made of aluminum alloy since after the way there was shortage of steel. Land Rover also introduced vehicles with 4 by 4 capabilities, a design that was adopted by the military. Jaguar merged with British motor corporation becoming part of British Leyland including Rover. In 1970, Rover introduced sporty off-roaders due to their high demand. Jaguar split from British Leyland 1980 and in 1989, Ford purchased it. In 1994, BMW was purchased by Ford which expanded its product range by introduction of the Free-Lander (Jaguar.co.uk, n.d.). In 2000, BWS joined Jaguar through Ford and the two shared engineering expertise and facilities. Later in 2008, Tata motors which are India’s largest car manufacturer bought the two companies and the merger was made official in 2013.
JKL is now a household name in UK having been built of two iconic automotive manufacturers of sports car marques, luxury sports saloon and all-wheel-drive cars.
Currently, the company sells its products in over 170 countries globally through a chain of national sales companies, franchise dealers, export partners and importers (Jaguar.co.uk, n.d.). In addition, the firm has managed to increase its sales every year by coming up with more exciting features in their brands. This report seeks to explore Jaguar Land Rover operations, logistics and supply chain management. Analysis will be conducted through an in-depth understanding of new product/service development and process and well as managing business relations in supply chains.
Operations, Logistics and Supply Chain Management
Management of business operations, logistics and supply chain is crucial for all organization to enhance success. They facilitate efficient decision making and improvement of firm’s analytical techniques including statistical analysis, finance, simulation and optimization (Sharma and Agarwal, 2012). Jaguar Land Rover makes a number of business improvement methodologies with the aim of maintaining a top position in the competitive automotive industry. The widely accept definition of supply chain management is the strategic and systemic coordination of business functions and processes within the company and across other businesses in the supply chain with the sole purpose of developing long-term performance of an individual company as well as the whole supply chain (Sharma and Agarwal, 2012). Logistic and supply chains are used together since they are important for product circulation during its life cycle. It is also regarded as a core unit of competitive analysis of business management. Supply chain is a broad term since it involves a wide ranges of activities such as value chain, value stream and pipeline management. Additionally, supply chain is involves a number of organizations. Consequently, a company should not seek to reduce costs or improve profits through supply chain but rather seek to improve to maintain industry competitiveness.
Unarguably, Jaguar Land Rover makes hundreds of supply chain decisions in a day since they affect produce development, distribution and sales as well as other manufacturing processes. Operations decisions are arrived at with knowledge of other tactical and strategic decisions that are made by the company. The decisions play a crucial role in creating the company’s supply chain conclusions for creating a framework for operations within the supply chain and for maintaining a competitive advantage (Sharma and Agarwal, 2012). Daily operations decisions ensure that there is continuous flow of the company’s products within the supply chain and that it is able to reap maximum profits. As a manufacturing company, Jaguar Land Rover requires making tactical decisions regarding manufacturing processes such as production of automotives whose fuel consumption is eco-friendly. Other operational decisions include ensuring that there is adequate stock at all times to preventing halting manufacturing process. Poor operations decisions increase costs especially when production line is at stand still due to lack of raw materials.
Suppliers’ decisions are also important in operations and supply chain management. There are times when suppliers make decisions at their company level taking advantage of manufacturers buying power (Sharma and Agarwal, 2012). This may either be an opportunity for manufacturers to save costs or making losses. However, an organizations requires making decisions in collaboration with suppliers to maintain efficiency in the supply chain. In addition, such decisions are imperative since especially when dealing with global suppliers to maintain product quality. For instance, the quality of goods supplied from one country may have different quality with ones supplied from another. Accordingly, manufacturers require negotiating operational decisions with suppliers to ensure quality of the end product. Suppliers that deal with customized important product that are made on demand are susceptible variations on their end products (Sharma and Agarwal, 2012). The automotive industry faces uncertain and unstable domestic volume in individual car mode due to the effect of consumer choices and preferences.
Marketing as an essential element of an organization works collaboratively with operations, logistics and supply chain management. In this regard, promotion, channel and pricing are its driving forces. Promotion and pricing are crucial in marketing management since they help in deriving the prices for old and new products according to company’s intergenerational product transition. Additionally, accurate information on product demand help in determining prices. Channel management also plays a crucial role in the interconnection between supply chain and marketing. The optimal channel is dependent on the environment, cost of channel management, nature of products and retailer convenience. It is also important to analyze the local market structures to see if they match with manufacturers conditions.
Operations and logistics management involves the strategies for transforming production inputs that include labor, materials and capital effectively and efficiently in the products required by the clients in the service industry or manufacturing. Logistics ensures that market demand is met quickly without incurring unnecessary costs (Sharma and Agarwal, 2012). To maintain a competitive advantage, firms require operations and logistics management both internally and outside in all sectors of the supply chain. Logistics also monitors delivery and safe keeping of materials to ensure that they are in good condition when they reach the client.
JLR Operations, Logistics and Supply Chain Management
It is clear that as a leading company in automotive manufacturing, JLR has invested in logistic a facilities in it plants throughout the world. In support of its global expansion, Jaguar land rover invested 10 million pounds to support its international expansion a move that has doubled its sales (Businesstoday.in, 2018). According the company CEO the move is meant to support its resilient long term growth. The company also created more manufacturing capacity in the UK that allows development of additional vehicles and innovative technologies. The company is also pushing planning on improving its supply chain and engaging in supporting its industrial growth. The company is not only pushing its UK manufacturers but also developing ways for increasing its overseas production (Businesstoday.in, 2018). To support the market served by Jaguar Land Rover, the company is redesigning the external and internal logistics.
The company has three shift productions ensure that customer promises are met. In addition, it receives over 200,000 cubic metres of materials form 800 suppliers (Businesstoday.in, 2018). JLR also partnered with SEKO Logistics that creates full visibility starting from pre-shipment to delivery enabling the company to save on cost and ensure efficient delivery. The company also came up with Priority Parts Returns (PPR) which is a core process for ensuring early problem identification and resolution on the delivered products. Parts returns are now controlled and analyzed earliest possible to ensure customer satisfaction and reduce costs on warranties. The logistics company manages custom processes and imports when goods are entering the UK to minimize delays and inspection of returned products. JLR signed a contract with Wallenius Wilhelmsem Logistics (WWL), a company that would help in management inland dispensing and ocean transport in China (Saunders, 2014). In collaboration with WWL, JKL created a National Sales Company and switched to freights instead of container vessels to minimize delays at China Ports. Consequently, the company will increase its efficiency and offer better quality services. In 2011, the company target to distribute 40,000 cars annually (Businesstoday.in, 2018). The aim was to attain a good reputation in China through utilization of services of a logistics company that had experience in distributing premium products in the country. WWL was required to ensure the quality of products match with what was produced in the factory through put the supply chain.
JKL also awarded DHL Exel Supply Chain a 3 year contract for managing its logistics and gathering European and UK components parts for its vehicles. It is expected that through the deal, DHL will manage building of over 300,000 cars annually and strengthen the company’s leading position in the UK automotive industry (Saunders, 2014). JKL also made other transformations on its supply chain making it easy to achieve. The company has put pressure on its supply capacity and made easier resource management decisions. It is developing talents ensuring that they are fit to serve the changing technology and market needs. Delivery infrastructure includes sea vessels, freight and road.
Jaguar Land Rover New Product/ Service Development and Process
The blueprint of Jaguar Land Rover is built on the company values. The company strives to create new solutions, grow a sustainable business and explore the future. Through visualization of its business goals, the company implements strategies for attracting growth opportunities and delivery of products according to the customers tastes, preferences and needs (Garcia, 2014). The company strategically strengthens its portfolio for building premium cares and services to inspire customer delight. Operations are world class coupled with continuous innovations for optimal and greater benefits to the society and the environment. The sales across the company regions are developed through the foundation for ensuring a global supply of automotive machinery.
JLR has continually invested in automotive design, innovations and technology to create the best products in the world for its customers. The company continually launches and invests in new car models across its product range as well as developing advanced products (Media.jaguarlandrover.com, 2018). The aim is customer needs through diversification of product and support them through company services. Owing to the fact that the automotive industry is exposed to continuous change, the JLR is always ready to face the challenges by advanced research on the next product. The company’s dynamic team collaborates in coming up with new innovations and ensuring that its market ability takes place as quickly as possible. For instance, as of May 2018, the company had recorded 48,281 sales that were realized due to introduction of new car models that included The jaguar E-PACE, new Land Rover Discovery and Range Rover Velar (Media.jaguarlandrover.com, 2018).
The strong demand for the new models drove performance in UK and UK while the important contributor was Range Rove Velar. The company also invests on study of market trends to enable it distance itself from competition. In 2017, JLR invested $5.5 billion, half of which was used for developing new car technologies. The aim was to keep up with competition from rivals such as BMW, Audi and Mercedes-Benz (Media.jaguarlandrover.com, 2018). It was also trying to market its traditional models. The company receives positive regarding new innovations and it expects that demand will continue growing strong.
Lastly, customers are engaged in creation and development of products to ensure that their needs and expectations are met.
Operations, logistics and supply chain management are directly interlinked with quality management. In the competitive automotive industry, the market dynamics deviation from quality is not tolerated. Evaluation of quality management either internally or external factors within the organization’s supply chain cannot be avoided (Sharma and Agarwal, 2012). The quality of supply chain offers the ground for decision making on solutions on different stages of management. The concepts in quality management provide a platform for addressing issues such as delay in product delivery, product recall or introduction of new products.
Jaguar Land Rover growth has seen the company making headlines in British business press. The impressive success story of JLR is built on the ambitious and quality supply chain adopted by the firm. Although the company’s plants located in the UK, Indian ownership gives the company a considerable market potential (Ludwig, 2012). The company’s exponential growth is created by logistics and complexity of its supply chain. For JRL, the driving force is more than numbers. The global logistics director for the company has helped in shaping its dealings with suppliers by introducing technical methodologies including a system for monitoring computer-generated models and performance.
The firm’s strategy for outsourcing logistics responsibilities to the leading logistics providers has enabled it to improve on quality. For instance DHL is involved in transport management, line feeding and handling stock (Ludwig, 2012). Similar arrangement is taking place in Europe and China markets. The relationships have not only helped in saving costs but also developed openness.
The organization’s supply chain logistic and supply chain is regionalized with 450 suppliers in Europe, and 350 in UK while Japan, China and North America has split 50 suppliers across the continent (Ludwig, 2012). The company does not rely on low-cost outsourcing because quality is the key. Despite delegating responsibilities to other companies, JLR has maintained independence and is accountable ensuring the quality of supply chain from the beginning to the end. Additionally, it believes in offering best practices for in all its plants owing to its huge operations size. Quality management in not limited to product movement but also focuses on other areas such as better control, decreasing exports lead time and improvement of distribution certain vehicle models (Ludwig, 2012). All these strategies are adopted because the company realizes the need for keeping customers first. It has driving a business culture that will enable it achieve this goal. Customer first demands all Jaguar Land Rover stakeholders to share a passion for satisfying clients.
Owing to the analysis report that clearly shows JLR success in operations, logistics and supply chain management. There are several factors that the company needs to consider for it to maintain a competitive position and sustainability. These recommendations will adopt the triple bottom line approach. This is a framework that helps companies evaluate their performance with considerations on social, environmental and financial environment (Taylor and Francis, 2013).
Due to the high demand of JRL products, the company is bound to manufacture many cars to meet the client needs, therefore, it advisable for the management to ensure that the cars have minimum effects on the environment and to encourage waste recycling.
Every employee and other stakeholder should be involved in generating ideas for creating an efficient workplace and ensure a profitable and sustainable business.
The company should not invest on infrastructure but also on the people where skills and talents are reviewed to ensure tackling of the future challenges in the industry.
The company should also slow down on finances utilization and focus on ways for introducing new brands at a minimum cost.
Businesstoday.in. (2018). Jaguar Land Rover plans to invest $17.8 billion on new products, next-gen tech in three years. [online] Available at: https://www.businesstoday.in/sectors/auto/jaguar-land-rover-tata-group-electric-cars-ev/story/279525.html [Accessed 14 Dec. 2018].
Garcia, R. (2014). Creating and marketing new products and services. Auerbach Publications.
Jaguar.co.uk. (n.d.). About Jaguar and the Art of Performance | Jaguar UK. [online] Available at: https://www.jaguar.co.uk/about-jaguar/index.html [Accessed 14 Dec. 2018].
Ludwig, C. (2012). Secrets of a success story at JLR – Automotive Logistics. [online] Automotive Logistics. Available at: https://automotivelogistics.media/intelligence/secrets-of-a-success-story [Accessed 14 Dec. 2018].
Media.jaguarlandrover.com. (2018). [online] Available at: https://media.jaguarlandrover.com/news/2018/05/new-models-drive-jaguar-land-rover-growth-april [Accessed 14 Dec. 2018].
Saunders, R. (2014). Doubling exports to China. [online] 2wglobal.com. Available at: https://www.2wglobal.com/news-and-insights/articles/customer-cases/Doubling-exports-to-China/ [Accessed 14 Dec. 2018].
Sharma, A., Garg, D. and Agarwal, A., 2012. Quality management in supply chains: The literature review. International Journal for Quality Research, 6(3), pp.193-206.
The Triple Bottom Line. (2013). Hoboken: Taylor and Francis.