1. Jaguar Land Rover: Technology Revolutionising the Supply Chain
By Vinay Manektalla

2. Company Overview
JAGUAR LAND ROVER is the UK’s largest premium automotive manufacturing business, built around two iconic British car brands: Land Rover, the world’s leading manufacturer of premium all-wheel-drive vehicles, and Jaguar, one of the world’s premier luxury sports saloon and sports car marques.
10 Vehicle Lines – with ambitious expansion plans to extend product offerings
3 UK Vehicle Assembly Plants with 2 UK Product Development Facilities
New advanced engine manufacturing facility at i54, South Staffordshire
Employs nearly 29,000 people globally
Employs 5,000 engineers and designers – up 1,000 on the prior year
Global sales reach – worldwide network covering 177 markets

3. 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)
Last year Jaguar Land Rover sold 425,000 vehicles in more than 170 countries – up 19% from the previous year
£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
One of the largest exporters by value in the UK, with 80% of our vehicles produced in the UK being sold abroad.

4. SWOT Analysis Strengths Weaknesses Opportunities Threats
1. High product Quality, rich culture identity and strong global brand value 2. Popular Image of luxury brand 3. Upgraded distribution channels specially in the emerging economies 4. Good, crisp quality advertising 5. Increase in Research and development spending 6. Improvement in global sales after Tata Motors acquisition
1. Lack a variety product range as compared to competitors 2. Despite having high performance cars, car design is criticized 3. After Tata acquisition cost cutting lead to labor union issues
1. Emerging economies like India, China, Russia apart from USA and Europe 2. Hybrid models of luxury cars is an untapped market
1. Strong competition from international automobile brands 2. Dependence on government policies and rising fuel prices 3. Financial instability causes steep downfall in premium car segment
Parent Company: Tata Motors
STP Analysis:
Segment – Ultra premium luxury automobile segment
Target Group – Rich businessmen and royal families
Positioning – A car full of performance, grace and luxury
A quick SWOT analysis on JLR reveals characteristics such as these shown here.
Considering JLR’s competitors: Porsche, Mercedes Benz, Audi, Aston Martin & Bentley

5. 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
Globalisation – successful automotive manufacturers have businesses across the globes as JLR do. Globalisation brings about problems of more difficult forecasting, greater logistics costs and admin and various other problems, for example, if a centralized or decentralized purchasing system should be employed and the advantages or disadvantages this may bring about – for example, loss of flexibility in a centralised system however a decentralized system creates more admin duplication or less control over purchase commitments.
Tiered supply chains – there is difficulty in seeing interactions and dynamics between many tiered systems and risk assessments also become more difficult especially with the risk of global disasters such as the Japan earthquake, Thailand floods and smaller scale issues such as fires at supplier premises which bring about the problem of contingency plans and how suppliers will react to these disasters across the supply chain
Environmentally driven legislation will penalise sub-optimised carbon footprints. As methods of measuring carbon footprint become more sophisticated, consumers will also become increasingly aware as well as company responsibility to combat this
OEMs want to offer customers more variety and customisation – this increases complexity and requires greater value added local to the OEM plant

6. 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
JLR has invested heavily in technology to combat these problems in the supply chain, for example the introduction of RFID (radio-frequency identification)
Dubbed the Jaguar Tradelane Project, the initiative aims to boost real-time visibility of the supply chain, improve the accuracy of information to customers, reduce variance in delivery times, and cut the costs ensuing from air transportation made necessary by delays.
‘We saw real benefit in tracking high-value car parts through the various stages of customs,’ he said. ‘The rollout for Jaguar has delivered better visibility of the supply chain and allows us to tell customers where the delivery is at all times.’ – Providing a customer focus which JLR prides themselves on and will be covered later

7. 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
By doing all this, GXS is able to establish JLR’s B2B environment quickly, ensuring business continuity and enabling JLR to remain focused on its core competency of manufacturing luxury cars
By harnessing their IT and supply chain infrastructure. GXS enables businesses like JLR to be ready to tap into new market opportunities whenever and wherever they emerge across the globe
The automation of movement, translation and validation of messages within suppliers mean JLR can react quicker to changes in demand, forecast and cascade this information more efficiently
Supplier base is closely monitored to detect signs of distress, mitigate risk and react to insolvency situations

8. 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
Automotive community aimed at creating collective protection from risks in supply chain – Aston Martin, JLR and Toyota Motor Europe worked with Achilles (supply chain management company) to develop three-step solution = hope to adopt across whole industry
An Online Portal – Consolidated multiple risk management processes into one standardized set of questions for all suppliers.
-Enables them to proactively identify and manage consistently risks in terms of health and safety, compliance, financial stability, ethics and corporate social responsibility – Suppliers fill out one questionnaire to be considered for all 3 automotive manufacturers – buyers can see at a glance potential risks in the supply chain
Supply Chain Mapping -  This feature allows automotive companies to map out which supplier manufacturing sites are potentially exposed to risks including natural disasters, financial and corporate social responsibility - , to proactively mitigate any potential impact on global production.
-SCM will also address potential bottlenecks, reliance on single suppliers, and companies with long lead-in times which could impact on production. The automotive community is now inviting Tier 1 suppliers, deemed as being critical to production, to provide information.
-These suppliers will cascade the request for information right down through the supply chain - creating a complete picture of supplier location, function and compliance across countries in a single database
A Financial Analysis Model (FAM) - By identifying potential problems early, buyers and suppliers can work together to address the root cause.
-One issue affects all and there is no competitive advantage in letting competitors have risk in their supply chain.
-The supplier information management system is hosted by Achilles – one of the world’s leading supply chain management companies.
Achilles Automotive provides an exciting new initiative which uniquely draws together three key Supplier Management tools; Supplier Information Management, Financial Risk Analysis and Supply Chain Mapping.
The purchasing director, Ian Harnett of JLR also highlighted that Achilles will deliver greater efficiency not only to JLR but to the whole automotive industry through the creation of a standard process of managing supplier information and keeping information current and up-to-date.
One may wonder why any car manufacturer may want to share their intiative with other car makers. However, the answer is simple. OEMs’ supply chains are so interdependent that there is no point in any of them trying to secure their supply chain as its own. As any OEM stopping production on a big scale would impact others within a very short time”
These examples highlight how supply chain management has been outsourced by these car manufacturers and how technology is benefiting the operations of these automotive supply chain in order to combat economic shifts

9. 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
The Jaguar Cars and Land Rover businesses were first combined by Ford Motor Company in 2002 and in its comparatively short automotive history Jaguar Land Rover has gone from strength to strength under the ownership of Tata Motors, picking up talented logistics leaders along the way.
One of those is Eduardo Muñoz, the Global Parts Supply Chain Director at Jaguar Land Rover.
Munoz believes that customer loyalty is crucial and that is a major focus for JLR
He also highlights “If you have a bad process and you put IT on top of it, you’re not going to make it any better in my opinion. If this is not analysed in a holistic way – for example, how products are received from suppliers, and how products are shipped to customers – the efficiency levels will be suboptimal.”
One of the ways JLR places focus on customers in the supply chain is through: Aftermarket purchasing ensures the Global Dealer Network have secure and competitive supply of "Genuine" Parts and accessories for the Service Life of our vehicles. The aftermarket is close to the customer and needs to be closely monitored.
A customer may wait an extra week to get the perfect car but be unwilling to wait an extra day for spare parts. This proximity to the end consumer means relationships with suppliers, logistics companies and dealers are carefully cultivated. 
On a day-to-day basis this entails - Manage/ enhance supplier relationships, interact with engineering, negotiate commercial issues, investigate cost saving opportunities and ensure seamless supply of a variety of parts to JLR's global dealer network.
Telematics is a relatively new technology being used in the supply chain. The more data, and the more opportunities you interact with your customers. The more opportunities you have to interact and the more you know about them and the more you can fulfil their needs. The use of telematics in automotive, still in its early stages, could be the tool used in the future to predict demand and use that information all the way upstream to have the right material available in the right place at the right time. Meanwhile, the more integrated supply chain you have, with quality data, good processes, and systems to support it, the better
The applications of telematics can be used right the way through the supply chain. For example, Trailer tracking is tracking the movements and position of an articulated vehicle's trailer unit, through the use of a location unit fitted to the trailer and a method of returning the position data via mobile communication network or geostationary satellite communications, for use through either PC- or web-based software.
Cold store freight trailers that deliver fresh or frozen foods are increasingly incorporating telematics to gather time-series data on the temperature inside the cargo container, both to trigger alarms and record an audit trail for business purposes. An increasingly sophisticated array of sensors, many incorporating RFID technology, are being used to ensure the cold chain.

10. Future For JLR? Threats and challenges of globalisation
JLR’s global outreach is evergrowing. A couple years ago they highlighted a key element of the plan is the expansion of operations overseas and have continued with this. This includes a new dealer network in India and China, with associate training academies, as well as the possibility of localized manufacture for these markets.
With globalisation comes a set of challenges, for example, businesses may not forecast efficiently and think about the long term. Over the last few decades the complexity and the growth of the city has created a short-termist outlook for investment decisions, which in turn creates problems of capitlisation and under-investment. Success in a highly globalised marketplace requires sustained investment to retain competitive advantage.
Also the implementation of a hybrid sourcing organization is working for Jaguar, however needs constant maintenance
Did you know Germany, leaders in engineering and automotive industries, has also the highest share of engineering PhDs in the G8? Higher education is not always enough and understanding how common scientific practice translates into technology and is then applied requires knowledge of diverse business functions. And JLR must recognise this in the employment of workforce in new markets. However, with most of R&D for JLR being based in the UK, a hub for R&D excellence perhaps this would not be such a problem in new product introduction
Eight Major Trends affecting the automotive supply chain:
Trends in demand:
Uneven Growth – differing growth trends in different geographical areas mean that OEMs must establish a local presence to benefit from these growth opportunities in new emerging economies. At the same time, they must integrate local operations into their global supply chain management systems and programs
Fragmentation - The environmental or “green” movement is encouraging fragmentation even further, by shifting demand away from large and/or high-consumption vehicles to smaller and/or more fuel-efficient cars, giving birth to even newer segments, such as city or microcars, and new propulsion technologies, such as hybrids, clean diesels, and diesel hybrids. —segmentation results in a more complex supply chain that needs to be managed
Accelerated volatility - Shifts in customer demand—from product to product, from brand to brand, and from segment to segment—are accelerating. a higher degree of flexibility and responsiveness must be built in up front so that suppliers can react quickly when overall product volumes are not in line with plan, or when the mix within the product differs from original forecasts.
Aftermarket - The aftermarket business is often a somewhat neglected area, even though it typically generates the largest share of OEM and dealer profits. Managing this business depends on processes and IT systems that let manufacturers track product
Trends in supply:
Differentiated outsourcing – Outsourcing in the automotive industry will continue. To benefit from continued outsourcing, supply chain management providers must offer flexible, modular solutions because not every manufacturer will concentrate on the same core capabilities and functions.
Low-cost country sourcing – Sourcing from low cost
Risk Management - Most manufacturers agree that their supply chain risk has increased in recent years. Natural disasters, terrorism, workforce issues, and level of dependence on partners and suppliers are just some areas that require strong capabilities in risk management.
Transparency and accountability - Business operations are becoming more complex and global. Supply chains are turning into complex supply networks. As a consequence, auto manufacturers and suppliers need transparency and accountability across the entire supply network
The increasing requirement for real-time information and effective communication across the supply network is critical for managing and optimizing the supply chain on a flexible basis, while keeping costs under control. While most global car manufacturers and tier-1 suppliers are in the process of addressing these requirements, smaller tier-2 and tier-3 auto suppliers have a long way to go
In this context, information technology plays an increasingly important role, effectively turning IT from an “operational delivery” function into a “strategic, differentiating” asset. The underlying IT network plays a critical role by enabling the integration of various endpoints (for example, RFID sensors, bar-code readers, handhelds, and laptops), communication technologies (fixed-line, wireless), IT assets (servers, databases), and applications in a secure and scalable manner. For specialized supply chain management providers, these trends represent significant opportunities to grow their businesses and expand their value-added offerings.
In regard to the “green” challenge, the focus on the environment might reshape this supply chain scenario even more radically. Rising energy costs, regulation concerns, and the demands of conscientious customers require automakers and their suppliers to reduce the carbon footprint of their entire operations—including supply networks.

11. References
agreement-with-gxs.htm
usiness_summer_2011.pdf