Management Project - Jaguar Land Rover PLC - Case Study Example

Management Project Executive Summary Jaguar Land Rover PLC (JLR) is one of the leading brands in the automotive sector. Owing to the increasing competition and stress provided on sustainability, it has been trying to meet the global requirements by integrating vehicles those are environmental friendly. In this context, it is important to elaborate the supply chain management is implemented to enhance the effectiveness. JLR refers to the use of 360-degree approaches to manage the SCM effectively and meet the global requirements. The paper also tends to analyse the different aspects of SCM with regard to JLR. SCM is a wide concept to which the stakeholders have immense role to play to ensure the quality of vehicles in the global market. Table of Contents Executive Summary 2 Introduction 4 Contemporary Supply Chain Management 5 Supply Chain for the New Vehicle May Differ To Previous Vehicles at JLR along with quality, quantity and cost 5 Efficient and Effective Supply Chain Managerial Decision Making and Supplier Selection 7 Consultancy Management Techniques 9 Supply Chain Management for Relevant Decision Making Process 9 Analysing The Present Information For Decision Making 11 Results of Information Analysis and Decision Making 13 Legal Requirements and Appropriate tools for Decision Making 14 Conclusions and Recommendations 17 References 18 19 Introduction Jaguar Land Rover PLC (JLR) is one of the leading companies in the automobile sector. It is regarded as one of the prestigious brands in the world. This Plc has it’s headquarter in the UK and it is regarded as the manufacturer of the well-known brands of Jaguar and Land Rover. In the year 2008, Tata Motors took over Jaguar and Land Rover for the expansion of the industry with innovative technologies as well as its strong legacy. The ownership of these brands witnessed the challenging landscape in the field of IT. It is to be noted that Jaguar Land Rover’s follow an approach, which is objective oriented. Combination of Jaguar and Land Rover was also considered to be a successful event as jaguar was a premier producer of sports car and other luxury cars. The merger of these brands led to the creation of a global image through innovation and technical excellence. The objective of both these brands was to provide efficient and user-friendly vehicles. The aim of the company was therefore to create a strongly sustainable business by incorporating competitive business practices. Moreover, the objective of the company has been to produce excellent automotive technologies to suffice customers’ needs and take major steps by engaging people, partners as well as customers in meeting organisational visions. The company has also been following a 360-degree approach for examining various products as well as operations aimed at developing and implementing strong business practices (Jaguar Land Rover Limited, 2015). Emphasising the stated context, this paper intends to identify and create information regarding the suppliers and the entire Supply Chain Management used by the company. The decision making process, with regard to its supplier framework and the entire process of SCM will also be evaluated throughout the paper. Contemporary Supply Chain Management SCM is an important aspect of business where the activities related to manufacturing, transportation and distribution towards the end customers are integrated in a systematic manner. Inbound, outbound, warehousing as well as inventory planning is termed as the integrated SCM approach, which is important for the success and sustainability of business (Andersson & Wemner, 2008). It is worth mentioning in this context that an effective SCM, for future, focuses upon customer needs and excellent information technology. In the present day context, the need of SCM is to manage the inventory efficiently, handle material and transportation management for sufficing the customers demand. An effective SCM is also important for engaging suppliers and customers to obtain greater sustainability of the organisation as well as increasing profitability. Contextually, it is a fact that a strong SCM helps the company to flourish in the long run and compete in the global market (Coyle & et. al., 2012). Supply Chain for the New Vehicle May Differ To Previous Vehicles at JLR along with quality, quantity and cost As mentioned, the objective of JLR is to develop vehicles, which are technologically sound and successfully incorporate innovation to suffice the requirements of global customers by reducing the negative impacts of carbon on environment. In this context, it is worth mentioning that JLR is regarded as one of the leading investors in the automotive green technology for enhancing electrification of the vehicles. JLR is focusing on producing new Plug-in Hybrid Electric Vehicle (PHEV) too. The supply chains for new enhanced technology this needs to focus on suppliers who are able to meet with the strategy as that of JLR to provide technologically sound vehicles. The specifications of the new enhanced vehicles, viz. hybrid and electric, are different from the normal luxurious cars and therefore, the need for suppliers’ changes considerably. The traditional suppliers are also quite unlikely to meet the changing needs of the new technologically sound vehicles and hence, new suppliers are taken into consideration. The automotive industry is also changing and therefore, stability is the prime focus of the industry. It must be noted in this context that suppliers are now selected on the basis of their innovation and technical soundness and their ability to mitigate risks. JLR is now taking into consideration transformation for strategising policies in supporting environmental operations in technology. Since long, the vehicles have transformed so has the concept of SCM of JLR to enhance its sustainability. Moreover, for the new transformation, JLR has been considering Rivalloy in the supply chain for creating a positive effect on the environment (Jaguar Land Rover Limited, 2013). For providing environmental friendly vehicles, the focus of JLR have shifted from traditional supply chain to the new, where renewable as well as natural materials are being taken into consideration, as a part of integrated SCM. The products supplied are more sustainable and helps in maintaining rigidity. Moreover, supply chain facilities of JLR are flexible with regard to climate changes. The quality of the products of JLR is also efficient in meeting the needs of customers and reduces uncertainty besides considering the ethical standards. Quality of products therefore depends on various factors, wherein the implementation of a proper supply chain helps in making effective decisions. Moreover, JLR focusses on ERP as well as Just-in-Time inventory management to reduce costs and eliminate wastes. Continuous improvement is another aspect required for new technological approach required when aimed at enhancing quality (Basu & Wright, 2010). Efficient and Effective Supply Chain Managerial Decision Making and Supplier Selection In the global competitive scenario, it is therefore important for every organisation to select valuable suppliers and incorporate new suppliers as well to meet the changing trends and demand of customers. Selection of supplier however depends on various aspects, among which the most important is the technological soundness of the supplier who will help in reducing the production costs through the use of technological advanced methods. Keeping a balance amid new and old suppliers will further help the company in meeting its business objectives. It is therefore vital for the company to screen its suppliers before selection. It is simultaneously important to analyse the ability of suppliers by verifying its capability in meeting the requirements of customers. Suppliers must therefore be able to meet the changing needs of customers using innovative technology. Moreover, the screening of suppliers will help in analysing the performance and non-performance of suppliers. The decision regarding the selection of suppliers however depends on various aspects such as reference checks, financial status checks and quality indications. In this respect, it can be stated that the decision regarding the choice of suppliers depends upon people who pass the qualification screening and are eligible to get into a contract. Moreover, suppliers having the knowledge about the market and the changing needs of customers are the potential suppliers for the company. JLR, being the largest manufactures in the automotive industry needs to select its suppliers as per the changing needs of the industry and are able to provide ‘Request For Information’, ‘Request For Quote’ and ‘Request For Proposal’ (Bail, 2009). JLR also considers various aspects when selecting or making decision regarding suppliers as the company is focusing on innovative products and designs that can reduce the emission rate of CO2. The future intention of JLR is to meet the demands of people by delivering technologically advanced products. From the review of the sustainability report of 2012 and 2013, it was correspondingly observed that £2 billion was invested by JLR for vehicles to achieve the long-term goals of the company. The company has accordingly collaborated with well-known suppliers and professionals in order to develop technologies such as hybrid as well as electric mechanisms. Moreover, with the collaboration of new and old suppliers, JLR is trying to deliver world-class performance to reduce the green house gas emission rate by 25% (Jaguar Land Rover Limited, 2013). Life Cycle Assessment (LCA) of JLR helps in understanding or determining the impacts of vehicle on the environment, this is an important aspect with regard to decision making. The life cycle of JLR thus follows a few steps, which includes product design. The aspect of product design is important in context to consider the sustainability of the product by ensuring a positive impact on the environment. For effective life cycle, JLR supports its suppliers in order to reduce energy, waste materials as well as reduction in CO2 emission. As JLR has been considering sustainability and creating positive impact on the environment, SCM also takes into consideration the transporting components. Carrying of material to factories from the suppliers lead to sustainable environment and therefore the selection of supplier is an important aspect. Moreover, JLR is trying to improve its manufacturing process by considering the efficiency of using renewable energy to reduce the emission level, as the company focuses on creating a positive environmental impact. From a general perspective too, SCM of a company is responsible for transporting products to the end customers as per the need of customers. The decision regarding effective environment management of JLR is also linked with the effectiveness of customer’s willingness to buy products, which are fuel-efficient. Moreover, JLR has been taking steps to manufacture hybrid cars to increase the market of the product and likewise, enhance its performance. Therefore, the selection of the supplier depends on various aspects such as the sustainability of suppliers for effective supply chain. Moreover, the supplier for the vehicles manufactured by JLR needs to develop vehicles those are technologically more sound and can help in augmenting the environment (Jaguar Land Rover Limited, 2013). In the competitive global environment, it is important for organisations to take effective steps and make corrective decisions regarding the selection of corrective suppliers. Sustainability of JLR also depends on innovation and technological advancements. As per the aim of JLR, various suppliers are part of the SCM, which is again considered as important for the growth and development of the company. JLR, initially a UK based company as stated above, was taken over by Tata to expand the business not only in the Indian and the UK markets but also throughout the world. However, as both the companies had different SCM practices and the way of performing in the automobile industry, the merger resulted into certain challenges that needed to be mitigated for the better efficiency of the company. In this regard, combining the different innovative methods in the business will help to perform to enhance the viability of business in future (Basu & Wright, 2010). Consultancy Management Techniques Supply Chain Management for Relevant Decision Making Process JLR, in order to meet its customers’ needs and sustainable business practices, has implemented Global Material Planning & Logistics. The Global Material Planning & Logistics of JLR also comprises of departments including “Inbound Logistics, Finished Vehicle Distribution, International & Powertrain Programme Management, Logistics Programme Management, Advanced Programme and Packaging Engineering, International Manufacturing Development, Pre-Production Prototype Materials and Vehicle Planning & Scheduling” (CILT, 2014). This implies that the company is taking into consideration its value chain for greater effectiveness. The sales of JLR have also increased considerably and hence, logistics and SCM is an important aspect that needs to be considered. JLR has a strong SCM and have various suppliers from the UK and other parts of the world. The expansion in the business of JLR thus reflects the strength of SCM and its logistics. It is evident that success of an organisation depends on its SCM and relationship building with customers as well as partners. The success of JLR also depends on several aspects, among which, the primary factors are the supply chain relations and technological developments. JLR is among the leading manufacturers of innovative and designer vehicles, as it has strong SCM standards. It is witnessed that the success of JLR depends largely on supply chain optimisation, which the management deals with by seeking innovative strategies and considering various logistics partners. Suggestively, in this context, JLR can also make use of the decision tree that will not only assist in ensuring a comprehensive decision-making process but also assure that the decisions are taken with due emphasis to their future consequences. An illustration of the decision tree that can be used by JLR has been represented below. Source: (Center for the Study of Complex Systems, n.d.) Value tree analysis can also be regarded as a vital aspect for decision-making keeping in view the costs and benefits related to JLR’s current strategic positioning. In general, the application of this analysis affects the process of decision by identifying problems and information to measure sensitivity for taking corrective decisions. Value tree is further regarded useful for making corrective decisions concerning the completeness of the process. These aspects of operationality and decomposibility are accordingly evaluated for making corrective decisions, which can be of substantial benefit to JLR. Moreover, the concern of value tree is to enhance performance and efficiency by reducing redundancy and errors, which further augments its applicability in the context (Center for the Study of Complex Systems, n.d.). Analysing The Present Information For Decision Making For the SCM to be effective, JLR needs to obtain information regarding supplier selection and changing demand. The objective of the company, as mentioned earlier, is to maintain the global environment and enhancing product quality for greater effectiveness. Notably, JLR, in order to expand its business and logistics has been seeking for new partners to meet the global demand and changing needs of customers. With a strong SCM, JLR can meet the need of its stakeholders and position itself amid customers for providing satisfaction and quality. However, in the initial years, the vehicles were competitively unable to meet the needs of customers and required change and innovation. In this context, it can be stated that JLR strategized its policies and augmented its products quality, as per the need of customers by taking into consideration innovative partnership with suppliers for better sustainability (Coyle & et. al., 2012). JLR makes effective decision making when identifying suppliers for the efficiency of the company. JLR initially had few suppliers for its different factories, which were creating complexities and cost ineffectiveness within the organisation. However, taking into concern the quality aspect, it is observed that JLR reduced the quality control dealing supplier to one so that the quality of the product is ensured. Moreover, for the effectiveness of SCM, JLR collaborated itself with Gobel & Partner (G&P) to ensure quality and innovation in vehicle development, which is regarded as a wise decision. Innovation and strong customer relationship is the success factor for the company, which ensured its sustainability in the long run. Moreover, the focus of JLR was to improve the product quality through continuous improvements and reduction in the inbound costs. While analysing the present information, it is noted that with the changing needs of the customers, JLR is changing its strategies to provide environment friendly vehicles. It is an effective decision taken by the company for the progress. With the help of innovative strategies, JLR can enhance the environmental performance by reducing carbon emission rates by 22% and enhancing its network throughout Europe. Expanding the various channels of its SCM and utilising technology would help it in reducing costs and enhancing services quality for the company (DHL, n.d.). Results of Information Analysis and Decision Making From the analysis, it can be revealed that a proper SCM by ensuring ERP system would prove to be effective for JLR in the long run for sustainability. It is evident that a SCM for the safety of global environment needs to meet few legal policies. Combining to innovative aspects of SCM is vital for the business to be successful. With the help of proper decision making, it was observed that for effectiveness of business and enhancement along with sustainability in the market, JLR further incorporated industrial strategies. In this context, in the year 2012 and 2013, JLR, through a strong SCM, sold about 375,000 vehicles and attained £1.68 billion profit (Jaguar Land Rover Limited, 2013). Moreover, the decision regarding implementation of new SCM techniques and tools is proving to be effective, as it is meeting the demand for electric cars and offering diversified products for sustainable growth. Ensuring integrity in the SCM and making effective decision-making helped in enhancing disciplinary actions for the benefit of the JLR in the long run. The decision to provide environment friendly car is vital decision by JLR to meet the changing demand, as the aim of the company was to create new supply chain for maintaining environment. It is a known fact that customers are regarded as one of the important stakeholders who possess a key role to play. Customers are key stakeholders and the sustainability of business depends on various aspects wherein transformations and changes in business depend on their respective needs. Therefore, success and changes in the business largely depend upon customers’ needs and preferences. Supply chain is significant for business to sustain in the competitive market and therefore, the role of customer depends on further aspects. Decision making, with regards to technological enhancements, is further perceived as an important aspect, signifying the role of the customers (Sigala, 2010). The application of the decision tree can also be useful in this decision making process to obtain an insight to the potential consequences of the strategic directions taken by JLR. In addition, the process shall better help in aligning organisational goals with the customer needs and preferences to deliver a more sustainable strategic direction or the company (Center for the Study of Complex Systems, n.d.). Legal Requirements and Appropriate tools for Decision Making For the success of JLR, it is important to make its stakeholders understand its code of conduct in order to meet the needs of customers by maintaining a suitable environment throughout its supply chain (Jaguar Land Rover Limited, 2015). The suppliers selected by JLR also follow the code of conduct to maintain the degree of collaboration amid customers and communities. It is evident that JLR is proud of its products, as the company ensures safe quality innovations. The suppliers are accordingly selected for JLR, as the policies considered by the company are linked with reducing its impact on environment. In addition, to ensure its sustainability, JLR has been employing not only local employees and suppliers but also international merchants to meet the needs of customers. With regard to the success of the organisation, the legal aspects considered relates with the sustainability of business. Environmental responsibility and global social responsibility are also perceived as the two pillars that affect the business and its profitability in the market. In the contemporary society, the aim of JLR has been to manufacture vehicles, which are environmental friendly. In this context, it is important for JLR to select suppliers for the sustainability of the business. In accordance, JLR follows an approach for responsible business wherein it takes into account the 360-degree approach for enhancing the sustainability of the business and diminishing environmental impacts. JLR is also committed towards manufacturing environmental friendly vehicles for increasing its venture and sustainability simultaneously (Jaguar Land Rover Limited, 2015). JLR implemented various strategies in the SCM in order to enhance its growth and sustainability prospects in the UK market. Correspondingly, the principle objective for SCM, with regard to decision-making was to augment long-term competitiveness in the supply chain. Moreover, to gain market share and effective decision-making, it expanded in the market of the UK and other global platforms with the help of exporting (Jaguar Land Rover Limited, 2013). With the increasing demand in the global energy, JLR has also implemented strategies and made a decision to reduce Co2 emissions. Therefore, JLR is taking measures to collaborate with sustainable suppliers for the welfare of the company and the stakeholders (Jaguar Land Rover Limited, 2013). In this context, it is vital to mention that sustainability of a JLR is possible by maintaining its brand image in providing quality products to its customers. Therefore, JLR has implemented a legal framework for its continuous improvements by maintaining ethicality as well as legality in the process of decision-making. In accordance, JLR integrates its suppliers with the goals of the organisation to ensure sustainability and quality supply of materials. It is a known fact that JLR is committed towards its customers and suppliers in order to maintain value. However, if JLR practices illegal activities and loses its suppliers, the company is quite likely to face losses and market share over the long run. It is also important to state that the company as well as suppliers share its confidential information for the integrity of the process and to enhance its market share on a continuous basis (Jaguar Land Rover Limited, 2013). Confidential information can also be related with the trade secrets and other important attributes such as the finances, technicality and other information. It must be noted in this context that suppliers and companies are closely linked with each other, as both share its terms and conditions efficiently for profitability and sustainability of organisation. In this similar context, JLR too have several confidential information, which if mislead might lead to several legal consequences. The confidential data includes written information regarding aspects those cover obligations and the terms of services, which are confidential in nature and if lost might affect the supplier and the progress of JLR considerably. For instance, JLR, if observed as acquiring data illegally, the brand image of the company will be hampered that would affect its sale and market share to a considerable extent. From a legal perspective, it is also vital for the company to maintain ethics and confidentiality in its approaches so that the image of the company can be enhanced. However, in the given scenario, if JLR loses its confidential data, the declarations and compliances of the legal aspects of the company will be at stake. Innovation and design are also regarded as the main aspects for the company if these security aspects are lost or decision regarding the same is not taken properly then the company and its management will be affected the most (Jaguar Land Rover Limited, 2013). In addition, brand image of JLR will be affected if the suppliers’ data are lost as the company aims to meet its customers’ needs by fulfilling its changing demands. In this case, if the confidential data is lost or the company seeks illegal activities, the image of the company will be hampered reducing its sale and demand amid customers (Jaguar Land Rover Limited, 2013). Conclusions and Recommendations From the analysis of the paper, it can be comprehended that supply chain of a business is important for the success of JLR. Effective decision-making and SCM together are beneficial for the sustainability of the organisation. JLR intends to provide hybrid vehicles for creating a positive impact on the environment and enhance performance of the same. It is thus recommended for JLR to take corrective measures and consider ethical supply chain for a sustainable future. Conclusively, it can be noted that sustainability of the organisation depends largely upon the selection of the suppliers. Therefore, it is recommended that JLR needs to focus on enhancing performances through continuous monitoring and by implementing TQM. This aspect will help the company to gain better understanding and work according to the corporate strategy. References Andersson, J.K. & Wemner, T., 2008. A Strategic Decision Making Model For Supply Chain. Department Of Business Administration, pp. 2-68. Beil, D., 2009. Supplier Selection. School of Business, pp. 1-21. Basu, R. & Wright, J.N., 2010. Total Supply Chain Management. Routledge. Center for the Study of Complex Systems, No Date. DecisionTrees. Chapter 1. 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