1. Integrated Management Report on
Jaguar Land Rover
Adit Bakkesh Shamanur
Module Leader Name: Kate Mottram and Xavier Pierron
1/5/2015
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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 Report1: Decision Making 5
Main Report2: Supply Chain Management 13
Recommendationsand Conclusions 18
List of References 19-20
4. 4
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: DecisionMaking
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.
Exhibition
The 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 publication
The 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 Reputation
Sandro (India) 9500 High Yes Very Good
Borich
(Germany)
4500 Medium No Good
Kentucky
(Jamaica)
2000 Medium Yes Bad
Samson
(France)
4500 Low No Good
Todes (Italy) 9000 High Yes Very Good
Kenson (USA) 8500 High Yes Good
Wichcraft
(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 Good
Sutro (Brazil) 2000 Low No Bad
Minser (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 Reputation
Sandro (India) 9500 High Yes Very Good
Todes (Italy) 9000 High Yes Very Good
Kenson (USA) 8500 High Yes Good
Wichcraft
(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) 9500
Todes (Italy) 9000
Kenson (USA) 8500
Wichcraft (Canada) 8000
Bryson (Norway) 9400
Schewan (South Korea) 7500
Walprise (Belgium) 6500
The List of Suppliers who have not been eliminated after applying the
Lexicographic Model are:
Suppliers Price (£)
Wichcraft (Canada) 8000
Schewan (South Korea) 7500
Walprise (Belgium) 6500
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The SMART Method:
Attribute Measurements
Price £ Cost of the product
Quality Customer satisfaction ratings
Average delivery times Average days it takes to deliver
After sales service Average questions answered after purchase
Defects Average defective products returned
Durability 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 6.5
Quality 2 24.2 9 7 6.5
Average Delivery
Time
3 15.8 7 6 6
After Sales
Service
4 10.3 7 6 6
Defects 5 6.1 7 6 5
Durability 6 2.8 8 7 6
Total Weightage Value for the Suppliers with Aggregate Benefit
Select supplier
Cost Service
Price Quality
Average delivery time
(days)
After sales service
Defects
Durability
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Attribute Rank Wichcraft
(Canada)
Schewan
(South Korea)
Walprise
(Belgium)
Pricing 1 326 306 265.2
Quality 2 217.8 169.4 157.3
Average
DeliveryTime
3 110.6 94.8 94.8
After Sales
Service
4 72.1 61.8 61.8
Defects 5 42.7 36.6 30.5
Durability 6 22.4 19.6 16.8
Total 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 andConclusions:
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 DecisionMaking:
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.]
