Great ENG706S1 Supply Chain Management Sample
Introduction
The key purpose of this report is to analyze the supply chain management of the selected company named as Jaguar Land Rover.
In this report, the evaluation of the present situation of the selected company is included in the concern of the supply chain. Similarly, the scope and the benefits of outsourcing and offshoring are also defined in this study in respect to understand the significance of the supply chain.
Moreover, it also discusses the supply chain strategy and the critical success factors in respect of implementing the supply chain strategies within the organization.
Apart from this, some important supply chain improvement tools are also identified in this report to increase the company’s growth. At the end of this report, a fine conclusion is also outlined to give a brief description of the whole report.
Company Background
Jaguar Land Rover Automotive PLC is identified as Jaguar Land Rover Limited’s holding company which is a British multinational automobile company. It has its headquarter in Whitley, Coventry, United Kingdom.
The key activities of Jaguar Land Rover are designing, development, the manufacturing and the sale of the vehicles that bear the Jaguar and the Land Rover Marques. Jaguar Land Rover offers different automobile products including luxury vehicles, and sport utility vehicles, etc. (Jaguar Land Rover, 2019).http://Great ENG706S1 Supply Chain Management Sample
The company has increased revenue from its automobile business as £25.8 billion in 2017–18. In a similar manner, around 43,224 employees were provided employment by Jaguar Land Rover in 2018.
Moreover, it is also identified that Jaguar Land Rover is also a subsidiary of Tata Motors which is the Indian automotive company.
Evaluation of the current situation
At the time of discussing the supply chain strategy of JLR, it is mentioned that the supply chain is informed partly through its own history that has involved Rover Group, the British Aerospace, the British Leyland, the Ford before Tata and BMW.
While concerns about the current situation of the supply chain of JLR, it is mentioned that the growth of the company is completely based on its supply chain that is highly regionalized along with the 350 suppliers within the UL and the 450 suppliers in whole Europe (Christopher, 2016).http://Great ENG706S1 Supply Chain Management Sample
In this way, the development of the Jaguar Land Rover supply chain and the LLP contracts reflects the entrepreneurial approach within the company. In this manner, there are around 50 global suppliers which are divided among North America, China, and Japan.
Apart from its ownership, the logistics management of JLR has always managed a measure of independence that is quite difficult to manage in the present time as per the Tata because there is no supplementary automotive in Europe.
That is why the logistics management of Jaguar Land Rover has been recognized by Tata at a global level last year and JLR was also given one of Tata’s Iniesta awards with respect to reducing the carbon emissions in its supply chain (Maczka et al., 2015).http://Great ENG706S1 Supply Chain Management Sample
JLR is not determined as first in order to adopt the LLP style approach but it is interesting that JLR has taken a step further with DHL that is responsible for 85% of the global inbound freight by involving all the Europe and whole the UK.
In this way, Jaguar Land Rover has created an impact on the conventional supply chain to create the closed-loop value chain.
Define the scope, benefits and critical issues of outsourcing and offshoring
In concern of outsourcing and offshoring, it is mentioned that offshoring is the situation in which the work is done in a different country whereas outsourcing is identified as the contracting work that is out to the external organization (Clark & Monk, 2013).http://Great ENG706S1 Supply Chain Management Sample
Usually, outsourcing focuses on the business relationship among two different parties in which one is an outsourcing subject and an external outsourcing company. The main objective of outsourcing is to outsource the general business processes including core as well as support business processes.
In this way, it can be mentioned that outsourcing is not defined as simply a purchasing decision. Whereas outsourcing is identified as the less common and it reflects the fundamental decision in order to refuse the internalization of business activities (Oshry et al., 2015).http://Great ENG706S1 Supply Chain Management Sample
Within the organization, the outsourcing and offshoring activities are accomplished as per the plan, form, specification, design and the details which are provided by the clients.
In addition, it is also defined that outsourcing and offshoring has the great scope in concern of the business growth because with the help of these activities, companies are capable to accomplish its product’s manufacturing with the less cost and due to this, companies are also able to offer their products to their customer at the lower prices as compared to its competitors.
At the same time, outsourcing and offshoring also have some more benefits like focus on business development, lower risks, more control and process flexibility along with the business expansion which is required by most of the companies (Mykhailiuk et al., 2015).http://Great ENG706S1 Supply Chain Management Sample
Apart from above, there are several critical risks which are identified in outsourcing and offshoring of business processes related to manufacturing. In this way, one of the major risks is cost reduction expectations that are quite difficult after getting the outsourcing services.
In a similar manner, data security and the process discipline are also considered as the risks in outsourcing and offshoring because while getting these services, companies have to share their details with the outsourcing and offshoring companies that can be harmful to them (Skymark, 2013).http://Great ENG706S1 Supply Chain Management Sample
At the same time, due to outsourcing and offshoring, companies loses their business knowledge because their important business process are done by other outsourcing companies and these companies do not share their working process with their client companies that are why the companies who have to get the outsourcing services do not have enough knowledge of their business process.
Discuss Supply Chain strategy and its critical success factors for implementing the SC strategy
While discussing the JLR, it is defined that the products of company are conceived through the sharpest minds along with the highest caliber thinking.
In this manner, this precision is shown within the quality of the products which realize their vision. So the thinking about sourcing them can be down to the company (Hugo’s, 2018).http://Great ENG706S1 Supply Chain Management Sample
In a similar manner, it is also recognized that Jaguar Land Rover focuses on its supply chain strategy because the supply chain management affects Jaguar Land Rover’s manufacturing in different ways.
It also includes the availability of the product’s inputs which are required for the production processes, the profitability of produced items, its costs, the company’s infrastructure and the variety of ways through which the company uses to interact with its suppliers as well as customers (Searing, 2013).http://Great ENG706S1 Supply Chain Management Sample
Moreover, it is also discussed that Jaguar Land Rover adopts the demand-driven planning as well as the business operating model which are completely based on the real-time demand insights along with the shaping of demand.
In this manner, the correct predictions, and contingency planning initiatives, are quite effective for company in order to ensure about the entire view with the effectual response towards the risks like the suppliers who are decided to go out to the organization, the natural calamities which create the affect on manufacturing and the political upheaval, etc. (Brandenburg et al., 2014).http://Great ENG706S1 Supply Chain Management Sample
In similar manner, it is also examined that with the help of this supply chain strategy, Jaguar Land Rover is capable to adjust product’s pricing and its promotional strategies to shape the demand of its products. It is also able to move its additional products very quickly.
In addition, due to the current supply chain strategy, the company gets the opportunities to drive its revenue growth and its future expands margins in context to the high demand products along with the limited market supply (Wisner et al., 2014).http://Great ENG706S1 Supply Chain Management Sample
In a similar manner to above, it is disclosed that there are several critical success factors that are crucial while implementing the supply chain strategy under JLR.
In this way, most important success factors is top management commitment as it is crucial because it encourages the employees who are related to supply chain management to work hard.
At the same time, the development of an effective SCM strategy is also important factor that is considered while implementing the SC strategy within the organization (Ahi & Searcy, 2013).http://Great ENG706S1 Supply Chain Management Sample
Moreover, the devoted resources for the supply chain and the adoption of modern technologies are also essential success factors because these factors make the supply chain process quite easy for the organizational employees.
A critical review on how the quality initiatives and problem-solving tool can be applied and their suitability
In respect of the critical issues in the present supply chain strategy, it is described that Jaguar Land Rover can adopt some different quality initiatives and the problem-solving tools connected with supply chain strategy for overcoming the number of issues which are determined in the Jaguar’s SC (Mangan & Lalani, 2016).http://Great ENG706S1 Supply Chain Management Sample
In this concern, lean philosophy can be effective for the company as the lean philosophy helps to identify and remove the several types of inefficiencies such as non-value-added costs and unneeded wait time under the processes that are caused by the defects, huge production, and the different processes in order to expand the business.
In this way, lean philosophy includes its five principles of lean manufacturing which are value, the value streams, the flow, the pull and the perfection (Fahima et al., 2015).http://Great ENG706S1 Supply Chain Management Sample
Moreover, it is mentioned that lean philosophy mainly focuses on the removal of wastage of time under the process. As per its principles, the expenditure of resources other than the manufacturing of products is wasteful so these wastages should be eliminated.
Apart from above, the theory of constraints is also the tool that can be adopted by Jaguar Land Rover to improve its SC management within the manufacturing of its products. This is identified as the methodology with respect to identify the most important limiting factors which are found in the way of attaining the pre-decoded goals.
After that, it is also effective for systematically improving that identified constraints unless it is no longer the factor of limiting the success of the SC within the business (Aric-Us-Zaman & Nazmul Ahsan, 2014).http://Great ENG706S1 Supply Chain Management Sample
Moreover, it is mentioned that within the manufacturing, the determined constraints are often considered as the bottleneck which is important for every manufacturing firm to identify the ways to overcome these constraints and make its supply chain strategy more effective and successful.
In a similar manner to above, it is mentioned that both the ways are quite effective for making the business profitable and in other words, it can also be mentioned that these tools are more sustainable because these tools are beneficial for Jaguar Land Rover to make its supply chain strategy successful (Rohr et al., 2014).http://Great ENG706S1 Supply Chain Management Sample
At the same time, it is also recognized that with the help of these quality initiatives, the company can increase the efficiency of its supply chain strategy that is not possible sometimes while implementing the supply chain strategy.
Moreover, it is also discussed that these tools are also effective to reduce the excess wastes which occur within the manufacturing process.
Conclusion
At the end of this report, it is concluded that JLR is a manufacturing company which manufactures vehicles including luxury vehicles, and sport utility vehicles, etc.
While concerns about the current situation of the supply chain of JLR, it is mentioned that the growth of the company is completely based on its SC that is highly regionalized along with the 350 suppliers within the UL and the 450 suppliers in whole Europe.
Moreover, there are several critical risks which are identified in outsourcing and offshoring of business processes related to manufacturing.
While discussing the JLR, it is defined that the company’s products are conceived through the sharpest minds along with the highest caliber thinking.
Similarly, Jaguar Land Rover can adopt some different quality initiatives and the problem-solving tools associated to supply chain strategy to overcome the number of issues which are determined in the Jaguar’s SC.
References
Ahi, P., & Searcy, C. (2013). A comparative literature analysis of definitions for green and sustainable supply chain management. Journal of cleaner production, 52, 329-341.
Arif-Uz-Zaman, K., & Nazmul Ahsan, A. M. M. (2014). Lean supply chain performance measurement. International Journal of Productivity and Performance Management, 63(5), 588-612.
Brandenburg, M., Govindan, K., Sarkis, J., & Seuring, S. (2014). Quantitative models for sustainable supply chain management: Developments and directions. European journal of operational research, 233(2), 299-312.
Christopher, M. (2016). Logistics & supply chain management. UK: Pearson UK.
Clark, G. L., & Monk, A. H. (2013). The scope of financial institutions: in-sourcing, outsourcing and off-shoring. Journal of Economic Geography, 13(2), 279-298.
Fahimnia, B., Sarkis, J., & Davarzani, H. (2015). Green supply chain management: A review and bibliometric analysis. International Journal of Production Economics, 162, 101-114.
Hugos, M. H. (2018). Essentials of supply chain management. US: John Wiley & Sons.
Jaguar Land Rover (2019). About Us. Retrieved from: https://media.jaguarlandrover.com/en.
Mangan, J., & Lalwani, C. L. (2016). Global logistics and supply chain management. US: John Wiley & Sons.
Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and supply chain management. Boston: Cengage Learning.
Mykhaylenko, A., Motika, Á., Waehrens, B. V., & Slepniov, D. (2015). Accessing offshoring advantages: what and how to offshore. Strategic Outsourcing: An International Journal, 8(2/3), 262-283.
Oshri, I., Kotlarsky, J., & Willcocks, L. P. (2015). The Handbook of Global Outsourcing and Offshoring 3rd Edition. UK: Springer.
Roh, J., Hong, P., & Min, H. (2014). Implementation of a responsive supply chain strategy in global complexity: The case of manufacturing firms. International Journal of Production Economics, 147, 198-210.
Seuring, S. (2013). A review of modeling approaches for sustainable supply chain management. Decision support systems, 54(4), 1513-1520.
Szymczak, M. (Ed.). (2013). Managing towards supply chain maturity: Business process outsourcing and offshoring. UK: Springer.
Wisner, J. D., Tan, K. C., & Leong, G. K. (2014). Principles of supply chain management: A balanced approach. Boston: Cengage Learning.
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