Integrated Management Report on Jaguar Land Rover

Adit Bakkesh Shamanur

Module Leader Name: Kate Mottram and Xavier Pierron

1/5/2015

Executive Summary

The purpose of this report is the discussion of importance of integrated supply

chains in order to attain sustainable competitive gain. The business

environment of today is characterized by quicker technological advancement,

diminutive life cycle of products, together with more powerful international

competition. To turn more reactive to market requirements and customers’

needs, corporations demand speedier delivery as well as good quality items.

Also, integration within the supply chain would be required. Integration of

supply chain would connect JLR with supplier, customer together with other

members through incorporating locations, process, functions, activities and

relationships. That incorporation would help the contemporary movement from

conservative relationship to long term durable strategic alliance and business

partnership. International competitors doing business in international market

nearly all the time tend to show global class performance.

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Contents

Title Page No

Introduction 4

Main Report 1: Decision Making 5

Main Report 2: Supply Chain Management 13

Recommendations and Conclusions 18

List of References 19-20

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Introduction

As consumers and automotive manufacturers become aware of

environmental issues, the pressure to develop new alternative fuelled cars

has become of strategic importance. Jaguar Land Rover is committed to

meeting the needs of their customers and therefore has taken the decision to

add an electric vehicle to their existing line up. To reach this objective, JLR

will have to implement new supply chains. Actually, the business environment

of today is branded by quicker technological advancement, shorter life cycles

of products together with more powerful international competition. This fresh

competitive setting force firms to energetically obtain fresh methods to attain

competitive benefit, since a firm’s competitive benefit turn to be more reliant

on productivity and operating efficiency across useful areas of the firm.

International competitors doing business in international market nearly all the

time tend to show and possess global class performance. In order to survive

the current global competition, a firm needs having the appropriate product at

the appropriate time, in the appropriate place within the current unpredictable

market. Thus, this report will focus on the creation of supply chain networks

from internationally based suppliers to the UK.

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Main Report 1: Decision Making

Identify and select sources of data and information regarding suppliers (you will need to consider the entire supply chain)

The sources of data and information regarding suppliers are:

I. Primary Source of Data: This is a type of data or information that can be collected by the researcher himself. The researcher can only find this data when he/she is not able to find the sources from outside. This is very costly to be implied with and takes lot of work for the researcher. It includes lot of confidentiality and usually follows secondary data as to use the current information.

II. Secondary Source of Data: This is a type of data, which can be obtained from institutions and organization’s research, which should be very appropriate regarding collection. It can also be called as information that already has been collected and usually is obtained when there is no primary source of data available. It helps in saving time on research of data and information. It is very relevant, accurate and reliable source to find information about.

III. Tertiary Source of Data: It is type of information or data that is gathered by other sources like primary and secondary data. It is also one of the most convenient data that can be obtained by any researcher. It is also a good resource of data and information to look up for facts and overview for any information.

The information regarding suppliers can be mainly obtained from the tertiary source of data as it contains both primary source of data and secondary source of data that are very reliable, relevant and accurate. The sources of data and information regarding suppliers, which the tertiary source contains, are:

Business Advisors:

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A business advisor can offer valuable information about suppliers who can be

helpful to the choosing supplier. The company should ensure business

advisor majors in the car industry and with a good reputation.

Major competitors in Electric Car industry:The company can conduct analysis on its rival channel of distribution.

Competitors’ analysis allows the company to determine countries with

successful supply chains in order to choose suppliers from that country.

Recommendations:The company can ask prominent business or companies to suggest the best

supplier in the market. The company giving counsel must have registered

success in introducing their products in the market. In addition, the period of

operation of the business can be considered too. The recommendation is the

best source since there is evidence of the supplier’s past success.

Directories: The directories like yellow pages offer the company a wide range of data

concerning suppliers. Jaguar Land Rover can choose the supplier with

relevant experience and success in car supply chain.

ExhibitionThe company personnel can visit trade fairs and exhibition where different

suppliers demonstrate their activities. The company should first sample out

motor industry suppliers in order to obtain relevant information.

Trade publicationThe company can obtain information about supplier via business release,

journals and magazines, where suppliers are featured. For example, some

magazines can rank suppliers or feature successful product that is attributed

to effective and efficient supply chain.

Identify the legal requirements relating to the collection use and storage of data and information:

Actually, the data protection laws helps to provide a balance between the

privacy to individuals’ rights as well as the capability of corporations to utilise

data for their businesses’ purposes (PCS 2015). Additionally, Data Protection

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Act 1998 becomes applicable every time a controller of data processes

individual data. The act possesses eight data protection principles as follows.

First personal data ought to be processed legally and fairly. In this case, for

the data to be fairly processed, the data subject ought to have information of

the data controller, the reason for being processed together with whichever

essential information, like, the probable effects of processing. On the other

hand, for data to be legally processed, it ought not to lead to whichever form

of bias, and should never contradict other laws, like Human Rights Act 1998.

Secondly, personal data, which is acquired for legal and specified

purposes and should merely be processed in a consistent manner with the

particular purpose. The other regulation is that data to be relevant, adequate

and sufficient for the rationale it was processed for (PCS 2015). The other

regulation of data is that it must be precise and updated. Users of data should

record it precisely and take sound steps of checking the accurateness of data

they get from anybody. Importantly, data controllers have a responsibility of

cleaning the entire systems of storage to annihilate out dated and inaccurate

information, and make corrections to incorrect records. The other legal

requirement of data is that it should be kept at the required time frame (Out-

Law.com 2015). An instance of out-dated data is records of recruitment of

unsuccessful candidates kept in excess of five months.

The other legal requirement is that data should be processed in

regard to rights of an individual, for instance, individuals possess the right of

preventing processing meant for direct marketing. The other legal requirement

of data is that; the necessary security measures ought to be taken in

protection against illegal or unauthorised processing of data (Out-Law 2015).

In this scenario, data controllers have an obligation of ensuring that safety

controls are implemented and strictly followed. Last and not least is that data

transfer should only be restricted to nations that possess appropriate controls

of data (Outlaw.com 2015). In this scenario, data controllers or employers

ought to ensure that personal data that get transferred out of European

Economic Area is protected. On the other hand, paper-based records ought to

be locked in cupboards, filing cabinets, and desks when they are not used.

Keys ought to be put in secure places. Importantly, secure methods of

obliterating papers include, utilising private confidential bins, incineration and

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shredding. CD-ROMs and floppy disks possessing sensitive data ought to be

overwritten or physically destroyed.

Select and apply appropriate decision-making frameworks to support the selection of the suppliers.

Elimination by Aspects (EBA) for the List of Suppliers:

A. The list of suppliers who provide the engine to the JLR Industry. B. Price is considered as the most important element or a attribute. The

lists of suppliers with the price of more than £10000 and less then £5000 are to be eliminated.

C. Quality is considered after price and all the low quality suppliers are removed or eliminated.

D. Durability is the next attribute, which is considered after quality.E. Reputation is the next attribute, which is considered after durability,

and the supplier, which is considered least reputed, will be eliminated.

Supplier Price (£) Quality Durability ReputationSandro (India) 9500 High Yes Very GoodBorich (Germany)

4500 Medium No Good

Kentucky (Jamaica)

2000 Medium Yes Bad

Samson (France)

4500 Low No Good

Todes (Italy) 9000 High Yes Very GoodKenson (USA) 8500 High Yes GoodWichcraft (Canada)

8000 High Yes Good

Wagam (China)

4000 Medium Yes Good

Bryson (Norway)

9400 High Yes Very Good

Kilaru (Pakistan)

3500 Low No Bad

Schewan (South Korea)

7500 Medium Yes Good

Walprise (Belgium)

6500 Medium Yes Good

Fries (Greece) 10500 Medium Yes GoodSutro (Brazil) 2000 Low No BadMinser (Japan) 4000 Medium No Good

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The List of Suppliers who are not eliminated after using the Elimination By Aspect Model:Suppliers Price (£) Quality Durability ReputationSandro (India) 9500 High Yes Very GoodTodes (Italy) 9000 High Yes Very GoodKenson (USA) 8500 High Yes GoodWichcraft (Canada)

8000 High Yes Good

Bryson (Norway)

9400 High Yes Very Good

Schewan (South Korea)

7500 Medium Yes Good

Walprise (Belgium)

6500 Medium Yes Good

The Lexicographic Model applied for the List of Suppliers:

A. Price to be considered as the most Important attribute and the supplier with the best reasonable price is to be considered and the rest are eliminated.

B. The Cheapest option for this strategy here is price, which is to be considered.

Suppliers Price (£)Sandro (India) 9500Todes (Italy) 9000Kenson (USA) 8500Wichcraft (Canada) 8000Bryson (Norway) 9400Schewan (South Korea) 7500Walprise (Belgium) 6500

The List of Suppliers who have not been eliminated after applying the Lexicographic Model are: Suppliers Price (£)Wichcraft (Canada) 8000Schewan (South Korea) 7500Walprise (Belgium) 6500

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The SMART Method:

Attribute MeasurementsPrice £ Cost of the productQuality Customer satisfaction ratingsAverage delivery times Average days it takes to deliverAfter sales service Average questions answered after purchaseDefects Average defective products returnedDurability How long it lasts for on average

The Measurement of Value for Selection of Supplier: Attribute Rank Weights Wichcraft

(Canada)Schewan (South Korea)

Walprise (Belgium)

Pricing 1 40.8 8 7.5 6.5Quality 2 24.2 9 7 6.5Average Delivery

Time

3 15.8 7 6 6

After Sales Service

4 10.3 7 6 6

Defects 5 6.1 7 6 5Durability 6 2.8 8 7 6

Total Weightage Value for the Suppliers with Aggregate Benefit

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Quality Average delivery time

(days) After sales service Defects Durability

Price

Service Cost

Select supplier

Attribute Rank Wichcraft (Canada)

Schewan (South Korea)

Walprise (Belgium)

Pricing 1 326 306 265.2Quality 2 217.8 169.4 157.3Average Delivery Time

3 110.6 94.8 94.8

After Sales Service

4 72.1 61.8 61.8

Defects 5 42.7 36.6 30.5Durability 6 22.4 19.6 16.8Total 791.9 688.2 626.4

The above table shows the weightage value of suppliers and it showcases that the Wichcraft (Canada) has the total weightage value of 791.7, which is more than the other two companies, which are Schewan (South Korea) with 688.2 and Walprise (Belgium) with 626.4 respectively. As the weightage value of Wichcraft (Canada) is more the other two companies, Jaguar Land Rover would be choosing its supply from Wichcraft (Canada).

Analyse and present information to support the decisions regarding suppliers selection:

The chosen methods for the supplier’s selection are enormously significant to the entire process and might possess a huge influence on the outcomes. Many people have invented and categorised multiple methods of selecting suppliers. A number of methods have been famous selection options for some years, whereas other techniques have recently emerged. As such, mixture of multiple various methods with diverse strengths designed to meet JLR’s particular selection requirements. The first method, which was used, was the Elimination by Aspects (EBA) method to list of many suppliers. This method is used while making decision for multiple selections. This method helped to bring down the list of suppliers from 15 to 7. The attributes, which are considered here, are price, quality, durability and reputation. In this method, all the attributes are considered to find the best supplier for the Jaguar Land Rover Company. The advantage of this method is very easy to apply and does not contain much complications. It is very easy to be defined and explained to others.

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The second method that is used is lexicographic model to list of many suppliers. This method is also used for making decisions for multiple selections. This method has helped to bring down the list of suppliers from 7 to 3. This method is always used to find the importance of main attribute. It mainly helps in finding the main attribute and selecting the best option available. The best attribute, which is considered here, is price, which is the most important one. The third and final method that is used is SMART method or model to the list of many suppliers. This method is used to make decision for multiple suppliers. This method has helped me to bring down the number of suppliers from 3 to 1. This is a very effective method to choose the supplier as it helps to choose the best supplier with the most weightage value.

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Main Report 2: Supply Chain Management

Consider how the supply chain for the new vehicle may differ to previous vehicles at JLR.

Currently, Jaguar Land Rover uses the services of DHL supply chain to

manage product and raw material supply. It is the main supplier of the vehicle

firm. The supply company is based on the location of the manufacturing plant.

The logistics firm is currently working with the production firm based in

Gaydon (Mullen 2014). The company came into agreement for the supply

after an agreement and meeting of standards from both the firms.

Manufacturing and supplying might be expensive to a company, if not

extremely involving.

Therefore, a company has to outsource some services like supplying

and procurement. This is to concentrate the manufacturing efforts into the

best quality at the process. It is the reason Jaguar Land rover works with a

number of supply firms. Jaguar Land rover plans to produce fuel effective

vehicles, where electricity is the main precursor of energy to move the vehicle.

This means that the supply chain has also to change or rather improve to

meet the market demands and the product involved. This is from the

manufacture of the product to the final piece to be supplied to the market. The

raw materials, the parts and the product in whole have to be considered in this

instance (Mullen 2014). It is one of the reasons that the Jaguar Land Rover

company should get an overhaul of its supplier. The supplier should be able to

specialize in handling the raw materials of the new machinery as well as the

final product.

The specialization part is meant to avoid damages or delays. Delays or

damages are not encouraged in any business model, especially during the

initial stages. This destroys a company’s policy, increases the customer’s

distrust into the company and hence gives the company’s competitors an

upper hand to take advantage of its misfortunes. Jaguar Land rover therefore

has to be strict in selecting a supplier that is efficient and stays put on his or

her policies. The new vehicle model needs new supplier chains. This

therefore means that the method of supply will be different from the usual

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way. Since the new vehicle is new in the market. Supply should be based on

the market demand and fulfillment of orders. This means that in order to

supply the vehicle, a client has to make an order which will be worked on and

then delivered through the suppliers. Manufacturing of an electric vehicle is an

expensive venture and therefore, demand should be the push factor for

supply. Jaguar Land rover cannot set up the manufacturing plant in every

market for the new vehicle. These therefore means, the customers have to

look for the vehicle. Since it is expensive to both manufacture and transport

the vehicle in whole, working on order delivery is more cost efficient for the

company than having the vehicle in show rooms for sale. This in mind, Jaguar

Land rover should exploit the platform of online marketing and order placing

for the vehicle.

Consider how quality, quantity and cost will be addressed when making decisions throughout the supply chain.

Quantity for supply of Cars in the supply chain will be based on two major

issues. The demand and the supplier, and since the production of the vehicle

is based on demand basis it can be reviewed as the issue. Demand is on the

market side, therefore, the market shows how many vehicles are produced

and supplied. Logistics will go into the supply of the necessary manufacturing

materials and into the delivery of the final product. It means that the market

controls the supply of the vehicle, and this is a viable fit for business which

ensures that the producer is on the gaining side. It also makes sure that the

producer is given a challenge and a chance to produce, and supply the best

product according to his or her ability. (Mays 2015).

Supply of the new vehicle also depends on the costs incurred to

supply. Actual costs start from the supply of raw materials and parts, to the

distribution of the product. This therefore means that if many suppliers are

involved, then there has to be a feasibility test to ensure the viability of each

supplier is gauged. Business for the company requires that there be profits

from the supply of the vehicle as well as payment for each and every partner.

Therefore, the cost of supply has to be checked before engaging a supplier. It

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is profitable to the manufacturing company since it lowers the probability of

disputes and improves the trust of suppliers and the market.

Cost of supply also depends on the quantity of the product. The new

fuel effective vehicle by Jaguar Land rover is not meant to be huge. The

vehicle is light and small in size; this therefore means that the cargo cannot

occupy an enormous requirement of space. There is also the essence of

supplying the raw materials, which are delicate. This therefore means that the

supplier has to invest in equipments and team that can handle fragile

materials. This specialty needs therefore require that more investment is done

on the courier services.

The new fuel efficient vehicle is a quality machine. It is due to the

efficiency and mode of operation that the vehicle has to be on demand. This

way, the customer and the producer have high expectations for the vehicle.

This therefore puts the supplier into an awkward position. The chain has

therefore to go from the producer directly to the consumer. This ensures that

every entity is considered in the chain. This is in a bid to maintain quality and

not incur any charges from overstaying with the product. The manufacturer

has to get back value for his or her money; the supplier has to ensure that his

or her job is accomplished without any extra costs while the customer has to

get his or her product the soonest so as to fulfill their anticipation.

Analyze the role of the customer in the supply chain.

Firstly, customers enable buyers to select suppliers according to the

customer’s needs (Achilles 2015). As an instance, JLR would select the

suppliers that offer what their customers desire. Actually, customers assist in

selecting suppliers. Secondly, customers help in products innovations. In this

case, manufacturers frequently make products that satisfy the customers’

needs. The other importance of customers is determination of quantity to be

produced. In this scenario, the manufacturers are capable of determining the

number of products that they make and sell, thus also informing their

suppliers the quantity that they should manufacture. Customers also play an

important role in the supply chain since they determine cost effective supplier

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who provides products at a fair price, the company can choose such supplier.

The choice of the supplier to the customer depends on the flexibility of the

supplier that is an important aspect for the manufacturer to look at when

selecting a supplier. The customer provides feedback to the manufacturer via

supply chain thus completing communication process that is essential to

intermediary and manufacturer. Lastly, customers prefer innovative suppliers;

thus the manufacturer can research basing on consumer preference before

deciding on the appropriate supply chain for his/her products.

Identify and discuss potential areas of difficulties in the new supply chain, offering ideas for constructive solutions.

The new supply chain would face many difficulties. First is

technological development for the products. To manufacture modified

products, JLR would require educating the current employees on advanced

technologies together with hiring highly qualified technologically personnel or

employees. The other difficulty would be having market for the newly created

vehicle. In this case, JLR would be required to aggressively advertise the new

product globally. Additionally, in some instances, it would be required to

demonstrate practically to customers how the new vehicle would be used.

Areas of difficulty in the producer to customer supply chain are tangible. This

is because the producer deals directly with the customer through the supplier.

A commodity that costs four times the price of transportation can be lost or

gets damaged. This is bound to put the manufacturer under heavy losses, or

delayed time in such of justice through the courts. The supplier can be sued

for the predicament, but the time wasted and the funds of handling cases may

have good use in buying utilities or paying plant line engineers or even the

costs of transporting raw materials. To ensure that there are no losses or

damages to the vehicle, the producer should first address the equipments and

the policies of the supplier and the roots of supply (Bossard n.d.).

Costs of supply may rise due to energy factors. This is due to

regulation of the energy sector by the government. Therefore, this means that

supply has to be either paused or the costs have to be met by one of the

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parties. Since the cost of supply is determined by the supply chain, Jaguar

Land Rover should devise mechanisms to ensure that supply of the materials

and the final product remains consistent. This has to be incorporated in the

company’s budget on procurement and supply, where a certain degree of

increase and decrease in supply funds has to reach. This way, supply of the

company materials and products will not be distracted.

Supply firms also ensure that the raw materials for production are accessed in

real time. This is to mean that the schedule for production is also affected by

the supply firm or the whole chain at large. Therefore, for Jaguar Land rover

to ensure that production of the new model of vehicle in plan is successful, the

supplier should be careful on the metrics and logistics involved in the

production materials. This way, the whole process of supply will be efficient

and work towards better production of units and meeting of customer and

market expectations. (Bossard n.d.).

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Recommendations and Conclusions:

Actually, the business environment of today is branded by quicker

technological advancement, shorter life cycles of products together with more

powerful international competition. Supply chain connects an organization

with suppliers, customers as well as other members in the channel through

incorporating their locations, process, functions, activities, process and

relationships, for instance, JLR’s incorporation with international suppliers. To

select appropriate partners for incorporation a number of factors have to be

considered. Some of the factors include financial strength of the partners, and

the specific investment degree among others. Actually, JLR should capitalise

on total research and development in all its operations in order to survive in

the current competitive world. Additionally, the firm should engage in through

advertising for the new electric vehicle to gain a good stand with customers.

Generally, supply chains are the products that the world uses today. In order

for Jaguar Land rover to effectively capture and supply the market with more

fuel efficient vehicles, the company needs an efficient supply with the best

roots in the market location.

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Reference List for Decision Making:

1. PCS 2015, Guide to Data Protection available online from

<http://www.pcs.org.uk/en/resources/imembership/guide-to-data-

protection.cfm> [18th March 2015].

2. PCS 2015, Guide to Data Protection available online from

<http://www.pcs.org.uk/en/resources/imembership/guide-to-data-

protection.cfm> [18th March 2015].

3. Out-Law 2015, Data Protection available online from < http://www.out-

law.com/page-413> [18 March 2015].

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Reference List for Supply Chain Management:

1. Mullen, E. (2014) Jaguar Land Rover Buying more Parts within UK than ever Before available from <http://www.birminghampost.co.uk/business/manufacturing/jaguar-land-rover-buying-more-7327307> [n.d.]

2. Mullen, E. (2014) Jaguar Land Rover Buying more Parts within UK than ever Before available from <http://www.birminghampost.co.uk/business/manufacturing/jaguar-land-rover-buying-more-7327307> [n.d.]

3. Mays (2015) What is Supply Chain Management available from <http://mays.tamu.edu/info/what-is-scm/ > [n.d.]

4. Achilles (2015) The Role of Customers in the Supply Chain available online from <http://www.achilles.com/dn/om-achilles/industry-insights-dn/1307-the-role-of-customers-in-the-supply-chain> [15 March 2015].

5. Bossard (n.d.) Challenges and Solutions for Supply Chain available online from < http://www.bossard.com/en/how-we-add-value/key-challenges-in-supply-chain-management.aspx> {n.d.]

6. Bossard (n.d.) Challenges and Solutions for Supply Chain available online from < http://www.bossard.com/en/how-we-add-value/key-challenges-in-supply-chain-management.aspx> [n.d.]

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