JAGUAR LAND ROVER: TECHNOLOGY REVOLUTIONISING

THE SUPPLY CHAINBy Vinay Manektalla

COMPANY OVERVIEW

RECENT COMPANY HIGHLIGHTS £1.5bn profit in 2011/12

First half 2012/13 £764m PBT – up 39% on 2011/12

Export revenues £11bn in 2011/12 – c80% of products

Announced 40 major product actions

New vehicles shown in 2012: Range Rover Evoque Special Edition – Victoria Beckham Jaguar XJ Ultimate & XF Sportbrake F-Type and all new Range Rover

JLR contributes >£7bn GVA to UK economy (Oxford Economics calculated figure based on 2010/11 FY)

SWOT ANALYSISStrengths Weaknesses Opportunities Threats

1. High product Quality, rich culture identity and strong global brand value2. Popular Image of luxury brand3. Upgraded distribution channels specially in the emerging economies4. Good, crisp quality advertising5. Increase in Research and development spending6. Improvement in global sales after Tata Motors acquisition

1. Lack a variety product range as compared to competitors2. Despite having high performance cars, car design is criticized3. After Tata acquisition cost cutting lead to labor union issues

1. Emerging economies like India, China, Russia apart from USA and Europe2. Hybrid models of luxury cars is an untapped market

1. Strong competition from international automobile brands2. Dependence on government policies and rising fuel prices3. Financial instability causes steep downfall in premium car segment

PROBLEMS FOR AN AUTOMOTIVE SUPPLY CHAIN Globalisation

Understanding the supply chain through many tiers

Contingency plans

Environmentally driven legislation

OEMs want to offer customers more variety and customisation

RFID TRACKS JAGUAR CAR PARTS Logistics firm Unipart is using radio frequency identification (RFID) to track Jaguar car parts

Cargo containers are tracked from the UK to US

RFID is used to monitor the location, security and condition of shipments on arrival at destination ports

ELECTRONIC DATA INTERCHANGE AND JLR GXS is a leading provider of business-to-business e-commerce solutions

EDI creates a flexible and scalable infrastructure for companies enabling the company to work with more electronic data interchange suppliers around the world

Outsourcing the management of their supplier EDI environment gives JLR access to cutting-edge B2B capabilities quickly and easily without requiring major investments in hardware, software or human resources

SHARED SUPPLY CHAIN SOLUTIONS An Online Portal - accessible to buyers and suppliers; offering comprehensive, accurate and up-to-date information about the supply chain

Supply Chain Mapping (SCM) - a tool, led by Toyota Motor Europe, which allows car manufacturers to see information about the sub supply chains involved with critical aspects of car production

A Financial Analysis Model (FAM) - serves as a ‘financial health check’ on suppliers

A GENUINE BRITISH SUCCESS STORY Car producers or OEMs focus is on the stability and performance of its supply chain

JLR deals with 700 suppliers of which 50% are in Europe, 45% in UK and 5% in the rest of the world

JLR’s expansion over the past couple years has enabled them to pick up talented logistics leaders along the way

JLR places focus in the aftermarket arena

Telematics

FUTURE FOR JLR?

Threats and challenges of globalisation

REFERENCES

1. http://www.smmt.co.uk/wp-content/uploads/sites/2/Meet-the-Funder-Presentation-SM-1911121.pdf

2. http://www.jaguarlandrover.com/media/23076/jlr_company_information.pdf

3. http://www.computing.co.uk/ctg/news/1857924/rfid-tracks-jaguar-car

4. http://www.mbaskool.com/brandguide/automobiles/1087-jaguar.html

5. http://www.gxs.co.uk/resources/media-centre/pr/2009/06/jaguar-land-rover-signs-b2b-outsourcing-agreement-with-gxs.htm

6. http://www.achilles.co.uk/en/news/1886-global-car-manufacturers-launch-shared-supply-chain-solution

7. http://www.automotivesupplychain.org/features/227/62/A-genuine-British-success-story/

8. http://www2.warwick.ac.uk/fac/sci/wmg/people/chairman/editorial/cbi_west_midlands_inbusiness_summer_2011.pdf

9. http://www.cisco.com/web/about/ac79/docs/wp/ctd/Auto_Trends_WP_FINAL.pdf