With increasing competition and globalization, companies around the world are trying to find effective strategies to reduce costs, increase sales and maintain their profitability. While some companies are successful in doing so, others seem to have fade away and become obsolete. The once big power houses like General Motors have found it difficult to compete with the emergence of innovative Japanese car manufacturers such as Toyota Motor Corp.
What needs to be done across these organizations is the employment of better and innovative management techniques. One such option is using a Sustainable Supply Chain Management
2. Contents
1. Introduction:...................................................................................................................... 3
2. Supply Chain at the Body Shop and Jaguar Land Rover: ................................................... 4
2.1 The Body Shop:........................................................................................................... 4
2.2 Jaguar Land Rover:...................................................................................................... 5
3. Conclusions:...................................................................................................................... 7
4. Recommendations:............................................................................................................ 8
3. 1. Introduction
With increasing competition and globalization, companies around the world are trying
to find effective strategies to reduce costs, increase sales and maintain their profitability.
While some companies are successful in doing so, others seem to have fade away and
become obsolete. The once big power houses like General Motors have found it difficult to
compete with the emergence of innovative Japanese car manufacturers such as Toyota Motor
Corp.
What needs to be done across these organizations is the employment of better and
innovative management techniques. One such option is using a Sustainable Supply Chain
Management.
The idea of Supply Chain Management is focused around two centre thoughts. The
main is that essentially every item that achieves an end client speaks to the total exertion of
various associations. (Handfield, 2011)These associations are alluded to by and large as the
supply chain. (Handfield, 2011)
The second thought is that while supply chains have existed for quite a while, most
associations have just given careful consideration to what was occurring inside their "four
dividers." Few organizations saw, a great deal less dealt with, the whole chain of exercises
that eventually conveyed items to the last client.(Handfield, 2011) The result was disjointed
and frequently inadequate supply chains. (Handfield, 2011)
Supply chain management, then, is the dynamic management of supply chain
exercises to boost client esteem and accomplish a sustainable point of interest.(Handfield,
2011) It speaks to a cognizant exertion by the supply chain firms to create and run supply
chains in the best & effective ways that could be available. Supply chain exercises spread
4. everything from item improvement, sourcing, creation, and logistics, and also the data
frameworks expected to organize these exercises. (Handfield, 2011)
The associations that make up the supply chain are "connected" together through
physical streams and data streams.(Handfield, 2011) Physical streams include the change,
development, and capacity of products and materials. They are the most noticeable bit of the
supply chain. (Handfield, 2011)Anyway pretty much as critical are data streams. Data
streams permit the different supply chain partners to arrange their long haul plans, and to
control the everyday stream of products and material here and there the supply chain.
(Handfield, 2011)
2. Supply Chain at the Body Shop and Jaguar Land Rover
2.1 The Body Shop
The Body Shop is a premium brand of cosmetics which provides original, natural beauty
products with over 2500 stores operating in 60 different locations worldwide. (The Body
Shop, 2014)
Procurement
Production
Marketing &
Sales
Distribution
Use by End
Consumer
5. The Body shop uses ethical practices to procure its products, and reaches out to its suppliers
with its special programs and incentives. It has one of the most ethical production lines, with
high regard to society and the environment. It believes in giving back to the environment.
Body Shop uses a mix of marketing strategies, by promoting its products as herbal and
natural, it taps into the premium market for consumers willing to pay a higher price for such
products. The management of the supply chain is an imperative component in endeavours by
business to bring down its ecological effect. The Body Shop International (BSI) has procured
critical involvement around there, beginning with the dispatch of its supplier ecological star-
rating plan.
2.2 Jaguar Land Rover
Established on two famous British car brands, Jaguar and Land Rover is the UK's
biggest premium auto maker. Their business is developing. In 2012/13, they sold practically
375,000 vehicles globally – up 23% from the past year – and produced £1.68 billion profit.
They are a major exporter, with 80% of vehicles produced in the UK sold abroad. Jaguar
Land Rover is owned by Tata Motors Ltd. They utilize 24,913 individuals in the UK and
support around 190,000 all the more through their dealerships, suppliers and local businesses.
Worldwide Material Planning & Logistics (MP&L) is a capacity of JLR that covers all
logistics and production network related exercises. Its mission is to convey the privilege
items, of the privilege quality, at the privilege place at the privilege time, without a doubt.
The Global MP&L capacity comprises of eight divisions
i. Inbound Logistics
Inbound Logistics is in charge of co-coordinating the development of inbound parts from
outer distribution centers and the administration of cross dock offices. It sorts out and screens
6. the development of cargo, offsite ventures, material handling supplies and linefeed operations
to give a gathering administration to all of JLR suppliers as far and wide as possible.
ii. Completed Vehicle Distribution
The outbound logistics capacity is in charge of the development of recently completed Jaguar
and Land Rover vehicles, to merchants and clients around the world. It arranges and screens
the development of each vehicle delivered, guaranteeing that conveyance happens in an
auspicious and effective way, without trading off elevated expectations of value.
iii. International &Power train Program Management (IPPM)
IPPM create and execute focal and plant logistics to help develop and part fare programs
from building idea through to manufacturing dispatch, powertrain projects, manufacturing
plant system and future site methods.
iv. Logistics Program Management (LPM)
Logistics Program Management facilitates the conveyance of vehicle projects to every Jaguar
Land Rover creation site, incorporating all components of the logistics production network, to
guarantee a strong methodology is taken after to empower fruitful manufacturing to occur.
v. Advanced Program and Packaging Engineering
Conveying on three regions; to guarantee logistics is considered in every part without bounds
item creation process. Perceiving chances to decrease squander and make the supply chains
for the future; building compartment arrangements and setting out the bundling method for
the business; and protection and accessibility of holder bundling for current vehicle lines.
vi. International Manufacturing Development
7. It deals with the scheduling; pressing and transportation of vehicle parts to Jaguar Land
Rover's abroad get together areas. (CILT (UK), 2007)
vii. Preproduction Prototype Materials (PPPM)
PPPM has two unique operational zones. Information Integrity oversees Perpetual Inventory
to keep up creation stock exactness and additionally times in all running and model year part
changes. Model Operations timetable, get, unit and convey all JLR's Prototype material for
both vehicle and motor projects. (CILT (UK), 2007)
viii. Vehicle Planning & Scheduling
Vehicle Planning & Scheduling is in charge of creating a Manufacturing Plan adjusted to
Sales and Purchasing to boost consumer loyalty and accessibility of vehicles to take care of
client demand and deliveryexpectations. (CILT (UK), 2007)
3. Conclusions
In the course of the above analysis, we have seen how The Body Shop and Jaguar Land
Rover utilize effective Supply Chain Management in order to achieve organizational success.
While Body Shop uses an effective Care for the Environment procurement, production and
distribution system, Jaguar Land Rover is all about engineering quality into their processes.
Supply Chain Management is about creating a system and training the right personnel to
effectively reach out and fulfil all the functional areas of management. Although the
dynamics of every organization is different, the fundamentals are essentially the same.
Following are some recommendations for both these organizations to further improve
on their Supply Chain Management.
8. 4. Recommendations
Alternate Marketing Strategies for Body Shop UK
1. Making a Strong and Identifiable Brand Name: Body Shop already has a good
brand equity in the market but it can be made even stronger. According to David
Aaker, a good brand name sells more products than any other marketing strategy. He
cites the example of Kodak who made their brand synonymous with photographs by
introducing two characters: “Brownie Boy” and “Kodak Girl”. (Aaker, 2010: 5)Body
Shop could consider employing a similar strategy and introducing a character that
promotes its brand. Maybe an animal character which promotes the brand by saying
that the products of Body Shop do not test their products on him/her or any other
animal. This would be in line with the company’s philosophy.
2. Use Greater technology for communication with customers:Ferrel believes that in
today’s communication technology driven world, it is important to be in constant
touch with the customer. (Ferrel, 2010) For example he says that Pizza Hut is a
pioneer in the field. A person can order food through a text message while driving
back home. (Ferrel, 2010) Body Shop should consider employing a communications
technology program, whereby it can be reached through simple text messages or via
phones to connect with customers.
3. Differentiating products: Walker & Mullins believe that organizations should try
and differentiate their products through strategic decision making. (Walker & Mullins,
2013)Body Line can do this by implementing a better strategy for pricing their
products.
4. Employ a Holistic Approach: Kotler advocates the need to have a holistic approach
when it comes to marketing, from “development and design to the implementation of
9. marketing programs.” (Roberts et al, 2010: 9) Body Shop lacks in the implementation
of its marketing strategy which is customer based, but, a lot of stores in the UK are
found to be incompetent while servicing the customers. Body Shop should check this
as soon as possible and perhaps send its store employees for proper training.
5. Concentrate on Niche Products: As Porter believes, concentrating on niche strategies
or “FOCUS” is very important. (NA, n.d.) Body Shop should concentrate on its niche
products that have held them in good stead over the years.
Alternate Distribution systems for Jaguar Land Rover
We believe that Jaguar Land Rover (JLR) has an overdependence on its exports and
distribution partners. A lot of countries, for example India have barriers to import such as
high customs duty on imports (up to 100%) We recommend that Jaguar Land Rover can
follow the Toyota method of setting up its production centres globally, and forge alliances
with its suppliers so that they too can supply at a global level. Moreover, if the cars are
produced domestically, they will not be levied the high customs duty. JLR must identify
the countries with the highest potential and evaluate if it is feasible for them to invest in
manufacturing there. Developing economies should be the target market for JLR as they
have high sales potential and relatively lower cost of productions.
References:
10. Aaker, L., 2010, Building Strong Brands. s.l.:Pocket Books.CILT (UK), 2007. Jaguar Land
Rover Overview. [Online] Available at:
https://www.ciltuk.org.uk/Membership/Organisation/Corporate/PlatinumPlus/jaguarlandrover
.aspx[Accessed 03 January 2015].
Ferrel, O., 2010, Marketing Strategy, 5th ed. s.l.:Cengage Learning.
Handfield, R., 2011, What is Supply Chain Management?,[Online] Available at:
http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-managementNA, n.d.
Roberts et al, 2010, KOTLER ON STRATEGIC MARKETING. 20 June.
The Body Shop, 2014. About Us. [Online] Available at:
http://www.thebodyshop.co.uk/services/aboutus_company.aspx[Accessed 03 January 2015].
Walker, M., 2013, Marketing Strategy: A Decision-Focused Approach. 8th ed. s.l.:McGraw-
Hill/Irwin.
