Jaguar Land Rover - Case Study Example

JAGUAR LAND ROVER by Student’s name Code + course name Professor’s name University name City, State Date 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 JRL with supplier, customer together with other conduit members through incorporating locations, process, functions, activities and relationships. That incorporation would prop up the contemporary movement from conservative relationship to long term durable strategic alliance and business partnership. Contents Title page.............................................................................................................1 Executive Summary..............................................................................................2 Contents.................................................................................................................3 Introduction............................................................................................................4 Supply Chain Creation Networks............................................................................4 Supply Chain Legal Requirements............................................................................8 Selection of Suppliers.................................................................................................10 Differences of Supply Chain Networks......................................................................13 Role of a Customer in Supply Chain.............................................................................14 Conclusions and Recommendation.................................................................................14 Bibliography.....................................................................................................................16 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, JRL 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 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. Creation of Supply Chain Networks from Internationally Based Suppliers to the UK As a matter of fact, finding international suppliers requires careful research. Thus, Jaguar Land Rover (JRL) would be required to identify suitable countries of trading with together with the individual suppliers found in those countries (Konig 2015). In this scenario, Jaguar Land Rover would have an opportunity of choosing materials and goods from several countries worldwide. Actually, there would be an expectation of trade-off between costs and echelons of protection and regulation. Interestingly, suppliers from developing countries might be having inexpensive products and services though there might be problems with solving certain issues. However, there are several factors that JRL would require to bear in mind ahead of selecting its best suppliers. First is a financial term which is subdivided into the following: (i) overall logistics cost and terms of payment (Tektas & Aytekin 2011). Before JGR making the decision of selecting its bets suppliers it should specifically make consideration of the total receiving cost of the services and products and the duration of time that it would be capable of making payment. The overall cost of logistics criteria entails freight cost, ordering cost, import duties and purchase price (Tektas & Aytekin 2011). Generally, the final price of the products and services in this case would be determined by tariff levels, global trade regulations, and the existence of free trade accords. (ii) Supplier’s profile that is measured in a number of criteria. First is the financial strength of the supplier. In this scenario, JRL suppliers ought to possess enough money for completing the given project and ought to be stable financially for a period not less than three years consecutively. The other measure of supplier that should be born in mind is flexibility (Tektas & Aytekin 2011). In this case, the suppliers would be required to be capable of adapting to the altering needs and demands. The other factor Jaguar Rand Lover would be required to consider when selecting suppliers would be innovation (Konig 2015). In point of fact, with several different and exceptional processes to every foundry, the affiliation between supplier and buyer turns to be partnership. As such, JRL would require selecting suppliers having innovation history for the purposes of targeting the JRL’s growth. Actually innovation is displayed by the manner the supplier is capable of adapting to industrial changes, frequently leading the souk with technological developments (Konig 2015). The up to date technologies play a meaningful role of keeping foundries very efficient and keep them ahead of ecological regulations. Innovation is not necessarily applied to products technology, but also in other organization’s facets. Additionally, innovation is also shown via an interactive web which puts to light the supplier’s latest services and products along with providing client’s interface (Hubble 2013). Overall, innovation and product alignment would be in the JRL’s selection criteria of suppliers. The other consideration by JRL before deciding its suppliers would be product alignment. As a matter of fact, an important portion of manufacturing the best quality parts of lowest cost turns to be configuring that product with the procedure. Thus, JRL would select suppliers having a history of product alignment in order to save costs. The other consideration to be made by JRL before making the final decision of selecting its suppliers would be reliability. In fact, reliable suppliers are flexible and consistent in addressing invisible events (Hubble 2013). In this case, JRL would consider supplier’s commitment to delivery schedules, metal casting, advanced technical support, constant performance of the product, and having the information that the supplier would support her. Additionally, the chosen supplier would be required to fulfil JRL’s expectations. Moreover, the supplier’s ability to partner with JRL for the purposes of improving current conditions together with assisting in process development or new product would also be required. Generally, the capabilities of suppliers would be required to be suitably aligned with needs of foundry to guarantee success. The other thing JRL would put into consideration ahead of selecting its suppliers would be environmental awareness. Actually, environmental awareness has turned to be of huge concern in contemporary manufacturing. As such, when selecting suppliers JRL would require knowing the suppliers dedication to sustainability (Tektas & Aytekin 2011). In reality, providing the sustainability report turns to be a good sign of the commitment of the supplier to ecology. Sustainability report show cases the supplier’s obligation to the community and environment. Actually, good suppliers mind showing their care about others businesses’ through offering safe products that are more ecologically friendly. The other consideration that JRL would have before selecting suppliers would be value (Hubble 2013). The selected supplier, in point of fact, would be required to bring value to JRL. In this case, value would be derived from constant quality of the product, on-time deliveries, on-site service, elastic business transactions, simplified payment and order entry systems, freight options, inventory management, and assisting JRL to get resourceful solutions with its customer projects. The other consideration by JRL would quality on selecting her suppliers. Actually, JRL would select suppliers having high quality products and services because low quality products and services would have a reflection on JRL and the supplier. In this case, JRL would first require determining whether the suppliers’ culture is quality centred or not (Konig 2015). The other thing to keep in mind by JRL in selecting suppliers would be delivery. Actually, improvements in on-line information systems simplify global operations in freight forwarders and custom brokers thus, the required lead time for the processes of purchasing decreases. Therefore, JRL would first evaluate the dependability of commitment of the supplier for scheduled delivery. Additionally, the supplier would also be expected to comply with document management, predestined order quantity and packaging standards. The other JRL’s consideration before selecting suppliers would be geographical location (Tektas & Aytekin 2011). Actually, JRL would consider geographic location of supplier’s nation together with route of transportation for the purposes of eliminating the disruption risks within the chain of supply. The other consideration by JRL ahead of selecting suppliers would be political ecology as well as the outlook towards policies of business in the country of supplier as they might have an effect on durable relationship between supplier and JRL (Konig 2015). In addition, more politically stable governments would be preferred by JRL as altering overseas policies might create major troubles in sustaining relationships with the suppliers. Importantly, in social ecological terms, it would as a whole be beneficial for JRL to bear in mind attributes, ethical and cultural similarity. The other factor that JRL would consider when selecting her suppliers would be due diligence (Hubble 2013). In this case, JRL would ensure that the suppliers they would be dealing would be genuine. As such, JRL would undertake different tasks to ensure the legitimacy of her suppliers. For instance, the telephone would be one check to be employed by JRL. Companies that would tend to use only free emails or mobile numbers as their contact information would be ignored. JRL would require suppliers to provide their business certificates or bank information and also request further details from some of their clients. In addition, JRL would also find suppliers’ information from the UK embassy to access registered businesses’ list. Identification of the Legal Requirements Relating to Collection, Use and Storage of Data and Information Actually, the data protection laws subsist 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 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. Second, personal data ought to be 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 ought 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 spring-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 outdated 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.com 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, 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 shredding. CD-ROMs and floppy disks possessing sensitive data ought to be overwritten or physically destroyed. Decision-Making Frameworks for Supporting the Selection of Suppliers and Support of Decisions Regarding Suppliers Selection The methods of selecting suppliers turn to be approaches or models that are used in conducting the selection process (Tahriri, Osman, Ali & Yusuff 2008). The chosen methods are enormously significant to the entire process of selection and might possess a huge influence on the assortment outcomes. Many scholars 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, JRL would use a mixture of multiple various methods with diverse strengths designed to meet JRL’s particular selection requirements. Thus, exploration of various selection methods would be done by JRL while scrutinising their various applications. First, the linear weighting approach would be employed (Tahriri, Osman, Ali & Yusuff 2008). In this case, selected suppliers would be rated on multiple criteria and where those ratings would be blended into one score like, the categorical model. The linear weighting would be used as it is the easiest, quickest and the cheapest to execute. However, it might be predisposed by contemporary events and normally entails subjectivities of high levels and thus is turns to be inaccurate. Also, the weighted point approach turns to be flexible, fairly efficient and simple to implement within the supplier choosing decisions optimization (Tahriri, Osman, Ali & Yusuff 2008). It turns to be more expensive than the categorical approach, but appears to be more purposeful, though it depends on the assessment of buyer of the performance of the supplier. The other method to be used would be the total cost approaches. Total cost approaches tries to measure all the entire costs linked to the vendor picking in monetary units (Paul, Gupta & Garg 2013). This model entails entire ownership cost and cost ratio. Actually, the cost ratio method turns to be very elastic. It turns to be a complicated method which demands an advanced cost accounting method. The entire cost approach is accurate, costly to execute as a result of its intricacy and calls for extra time and entails the capability to recognize the more imperative elements. The other method to be implemented by JRL would the mathematical programmes approach. In this case, the approach frequently considers merely the more quantitative criteria which include the Artificial Neural Network (ANN) and Principal Component Analysis. As a matter of fact, the PCA method possesses two advantages which are accessibility and ability of handling several conflicting traits (Paul, Gupta & Garg 2013). On the other hand, the ANN approach is capable of saving time and money. The weakness of mathematical approach is that it would require exceptional software and would demand qualified persons who are professionals on that subject. The other supplier method to be used would be the multiple attribute utility theory (MAUT) method. The advantage of MAUT is that; it would enable JRL purchasing professionals to devise feasible strategies of sourcing and would be capable of handling several conflicting elements. Additionally, it is a good method as it requires a risky and complicated environment. The other method to be implemented would be the Fuzzy logic approach. As a matter of fact, the fuzzy logic would assist in measuring the supplier performance assessment (Tahriri, Osman, Ali & Yusuff 2008). In this case, JRL decision makers would be helped in finding out the suitable ordering from every supplier. The other method to be used by JRL in selecting suppliers would be the Analytical Hierarchical Process (AHP). The AHP turns to be a decision-making mode instituted for alternatives prioritizing the time that several criteria ought to be born in mind and permits decision maker to arrange complicated problems in the hierarchical form, or an arrangement of incorporated levels (Paul, Gupta & Garg 2013). The AHP turns to be moderately easier to use and comprehend. The approach integrates the quantitative and qualitative criteria. Literature reviews on supplies proposes AHP to be one of the methods that are in practice commonly applied. JRL would rank alternatives when several sub-criteria and criteria would be at hand in the process of decision-making. Like the MAUT, AHP would allow JRL decision-makers in structuring complex problems in hierarchical decision mode. The hierarchy would comprise of three diverse echelons that comprise of alternatives, criteria and goals. The AHP being a supplier picking method, would allow JRL decision makers in ranking suppliers grounded on the relative imperative and suppliers’ appropriateness (Pal, Gupta & Garg 2013). Actually, AHP would provide a methodology of ranking optional choices grounded on judgement of decision makers regarding the criteria’s significance and the degree to which each alternative meets them. For that reason, AHP turns to be perfectly fitting for the problem of supplier selection. The problem ranking would lend itself to a scrutiny grounded on the outcome of a given echelon on the subsequent higher echelon. The process would begin by establishing the relative significance of the criteria within achieving the goals (Paul, Gupta & Garg 2013). Subsequently, the focus would change to quantifying the degree to which the options would attain every criterion. Lastly, the outcome of both analyses would be synthesised to calculate the relative significance of the options in achieving the goal. In this scenario, JRL’s managerial judgements would be used in driving the AHP model (Paul, Gupta & Garg 2013). In addition, the judgements would be articulated in pair-wise comparison terms of things on an offered hierarchy level relative to their effect on the subsequent higher echelon. The reason for using AHP would be its ease and capability of accommodating uncertainties together with subjective data, and allowing insight, experience as well as instinct within a logical mode. How Supply Chain for the New Vehicle May Differ to Previous Vehicles at JRL and Potential Difficulties with Ideas for Constructive Solutions First, with the new supply chain, the goods would be moving to far larger geographical distance (MacDonald 2006). As such, the supply of goods would require various transport modes together with many hand-offs which would be mandatory to be managed. Actually, the previous JRL would not involve such complex transportations. Additionally, the new vehicle supply chain would require higher expertise and skills in its management than the previous one. The other difference is that the new supply chain is coupled by risks that call for continuous conducting of price-benefit analyses (Piotrebelli & Saliola 2007). The other difference of the new supply chains to the previous supply chain is security. The new JRL supply chains would need more security to the products being transported than the previous supply chain (Piotrebelli & Saliola 2007). This is because the products being transported would pass through many hands. The other difference is port issues. The new supply chain would require much consideration of capacity issues together with routing goods accordingly which is not a must case with the previous supply chain. The other difference in the supply chain is technology capabilities. Actually, the new supply chain would require advanced technological capabilities and abilities of the products than the previous one. On the other hand, the new supply chain would face some difficulties. First is technological development for the products. To manufacture modified products, JRL would require educating the current employees on advanced technologies together with hiring highly qualified technologically personnel. The other difficulty would be having market for the newly created vehicle. In this case, JRL 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. Role of Customer in the Supply Chain First customers enable buyers to select suppliers according to the customer’s needs (Achilles 2015). As an instance, JRL would select the suppliers that offer what her customers desire. In a word, customers assist in selecting suppliers. Second, 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. Conclusion and Recommendations 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, JRL’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, JRL 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 thorough advertising for the new electric vehicle to gain a good stand with customers. Generally, supply chains are the products that the world uses today. Bibliography Achilles 2015, The Role of Customers in the Supply Chain, available from < http://www.achilles.com/dn/om-achilles/industry-insights-dn/1307-the-role-of-customers-in-the-supply-chain> [15 March 2015]. Hubble, J 2013, Supplier Selection Part 1: Important Factors to Consider before Starting Your Search, available from < http://www.ccs-inc.com/blog/article/supplier-selection-part-1-important-factors-consider-before-starting-search > [18th March 2015]. Konig S 2015, Choosing the Best Suppliers for Your Business, available from < http://www.allbusiness.com/choosing-the-best-suppliers-for-your-business-14316208-1.html > [18th March 2015]. MacDonald, A 2006, Managing a Global vs. Domestic Supply Chain, available from [18 March 2015]. Out-Law.com 2015, Data Protection, available from < http://www.out-law.com/page-413> [18 March 2015]. Pal, O., Gupta, A, K., & Garg, R, K 2013, Supplier Selection Criteria and Methods in Supply Chains: A Review, International Journal of Social, Education, Economics and Management Engineering. 7(10). 1395 – 1401 PCS 2015, Guide to Data Protection, available from [18th March 2015]. Pietrobelli, C., & Saliola, F 2007, Power Relationship along the Value Chain: Multinational Firms, Global Buyers, and Local Supplier’s Performance, available from < http://www.merit.unu.edu/MEIDE/ > [18 March 2015]. Tahriri, F., Osman, M, R., Ali, A., & Yusuff, R, M 2008, A Review of Supplier Selection Methods In Manufacturing Industries, Suranaree J. Sci. Tech. 15(3). 201-208. Tektas, A., & Aytekin, A 2011, Supplier Selection in the International Environment: A Comparative Case of Turkish and an Australian Company, available from < www.ibimapublishing.com/journals/IBIMABR/2011/598845/598845.pdf > [15th March 2015]. Read More