Logistics Management: Supply Chain and Success of Jaguar Land Rover

This article discusses the supply chain and logistics management of Jaguar Land Rover, analyzing the complexities of the supply chain and how the company has managed to deal with those complexities to maintain a steady growth in the automotive industry. It also explores how the company can maintain its competitive advantage, the relevance of sustainability to Jaguar Land Rover, and provides recommendations for the company's success.

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EXECUTIVE SUMMARY
The concept of the supply chain has been supported by a robust management in the
organization's logistics. This helps in maintaining a global growth of the organization's supply
chain. Logistics management entails having exhaustive preparations and effective decision
making at the different levels of organizations performance. The Jaguar Land Rover case study
tends to analyze the complexities of the supply chain in relations to logistics management, how
the firm has managed to deal with those complexities to maintain a steady growth in the
automotive industry. The analysis also tries to discuss how the company is dealing with the
industrial challenge of rapid expansion of its operations in a global perspective.

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Table of Contents
EXECUTIVE SUMMARY.................................................................................................................................2
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Fundamental reasons for success of Jaguar Land Rover..............................................................................3
How can the company maintain its competitive advantage?......................................................................5
Technological advantage.....................................................................................................................6
Corporate venturing............................................................................................................................6
Organizational change.........................................................................................................................7
Effectiveness for other companies..............................................................................................................8
Concept of sustainability and its relevance to Jaguar Land Rover...............................................................8
Recommendations.......................................................................................................................................9
Conclusion.................................................................................................................................................10
REFERENCES..............................................................................................................................................11

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Fundamental reasons for the success of Jaguar Land
Rover
The use of management principles in operational logistics to enhance the effectiveness of
the movement of goods and human resources is referred to as logistics management. Logistics at
Jaguar Land Rover Company has contributed greatly to its recent rise in the automotive industry.
This rise has been consistent in the recent past. Nevertheless, this has not been the case for a
company which was on the verge of collapse was it not for the logistics team’s input and
contribution. One of the major factors that can be attributed to this success is the supply chain of
the company. Since the suppliers are in vast locations across the world, appropriate methods had
to be put into consideration to all the sectors of the supply chain to ensure that they are in order.
A number of activities take place through the supply chain of which some of them include: the
inventory management, the outbound and inbound, the in-plant, the warehouse management, the
packaging design and the freight.
In freight, inbound, outbound, and the modes of transport were vital elements that
contributed greatly to the company’s success. Inbound transport includes the collection and
transportation of the vehicles’ body parts while outbound includes transportation of finished
vehicles. This has been done using three types of loads. Full track load; a full track is loaded at a
specific supplier and transported directly to the plant; less than full truckload, this is where
suppliers are located far apart and thus a truck is loaded with less materials. This takes place
where specific materials are needed; milk run is whereby various suppliers located at close
range, loads a truck and then transported to the plant which is then transported as full load at
final stages. Apart from the road transport, Jaguar also utilizes the use of rail transport. This

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transportation of materials from the suppliers to the plants has enabled the company to have a
consistent production of the cars. There is also the need of adopting a multi-modal transport
system but in most cases, it seems not to be applicable. Due to the limitations in the supply
terms, imports and customs regulations, inco- terms related issues, complexity in products and
the differences in the product components, the applicability of multimodal system becomes a
challenge. Additionally, the inapplicability of the multi-modal transport system can be attributed
to infrastructure limitations. For example, some parts of the country are not serviced by rails,
roads or cannot support sailing. Also, some ports have issues with capacity holding and this can
be a limitation towards success of any automotive company. However, Jaguar having
incorporated the three types of road collection and also railway collection has enjoyed the ease of
ensuring that the raw materials as well as the final products reach the plant and markets on time.
The company has used outbound operations though mostly these operations are faced with
diverse. Maintenance of high levels of qualities without considering the intended country of
destination poses to be a major challenge. The levels of customer service is constrained by time
bounds is another emergent challenge. Such factors like change in weather conditions may affect
the pre-determined freight sea route which may in turn derail the delivery duration. The size of
some Jaguar that is larger than the standard thus not ideal to be transported using containers. The
government transport regulations that vary between countries and the low environment impact
are just but some of the challenges of inbound operations.
Packaging is also another logistic that made Jaguar Land Rovers successful. This logistic
is very critical in the automotive industry. The global growth of JLR led to increased use of
expandable packaging. All parts that are needed to make a range rover equivoque require a
specifically designed expandable packaging. However, introducing returnable packaging has

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more advantages than expandable packaging in that it has cost quality and operational efficiency.
Design of a car has a direct impact on logistics operations. For example, some designs such as
that of a Land rover defender are very specific. This vehicle possesses an internal frame to which
other BIW parts are attached. Thus, this gives room for parts of a car to be shipped separately. In
India, operations are LLA because neither the models possess an internal frame. This thus can
have the body parts assembled and painted in the same locality.
The land Rover manufacturing process is also influenced by the Logistics service
providers. They are helpful in various roles in the supply chain which has led to the success of
this company from the collection of parts, to the in-plant material to the distribution of finished
vehicles. Jaguar Land Rover has established a more strategic relationship with a specific LSP
(DHL) that plays a critical role in its overall logistics operations. Its responsibilities in the supply
chain encompass a much more expanded scope in contrast to another Jaguar Land Rover LSP’s.
Managing the relationships with LSP’S is critical to Jaguar Land Rover as this helps it to achieve
cost saving and increase operational flexibility. This has helped in the success of this company
more so in relation to other companies as there are openness and trust between the company and
it’s LSP’s. Finally, there is a willingness to oftenly share confidential information.
How can the company maintain its competitive
advantage?
The company is one of the best automotive companies known globally can maintain its
competitive advantage by maintaining some of the advantages it has. The unique competitive
advantage enjoyed by the firm is the product line advantage where it manufactures a range of
unique sport cars whose model usage is limited to lower geographical regions (William &
Micheal, 2013). Thus, it can maintain its competitive advantage by having a vast line of

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products. Another way is by expanding its service advantage. The company lacks service
advantage due to the limited presence all over the world. If the company can reach out to every
corner of the world and with its current advantage over other automotive industries then it goes
without saying that it can remain at the helm of the other automotive companies. Retail
advantage can also be captured by Jaguar land rover since it has limited dealer network with
even a few being companies owned (Thomas & David, 2013). The company needs to expand
where it outsources its raw materials by having many dealers all over the globe so as to have a
larger dealer base as compared to their rivals. It also needs to set up plants in various regions of
the globe as this will ensure the company has reduced transportation costs of the materials to the
various plants and this will reduce the cost of its finished products thus giving it the cost
advantage of final product over other companies.
Technological advantage
The jaguar company is characterized by the highest spending on research and
development for it subsidiary segments. Technology is paramount to any company’s success;
basically, a company with the best technology is on the verge of leading other companies. This is
so because the world has become a global market and most of the activities including orders,
purchasing among others are done online. Technology also calls for the various makes of
machines to be very high-tech. thus this calls on Jaguar to be extra vigilant as far as technology
is concerned (Chopra, 2012).
Corporate venturing
JLR knowing very well of the change in the marketplace has established against a
backdrop an innovation unit to venture in the capital arm. The establishment of the innovation
unit is mandated to deliver on the development on digital age products and to invest in the early-

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stage companies together with the mobility sector startups (John et al., 2015). This has given the
company an advantage over other companies keeping it at the helm.
Supply chain advantage can be maintained since the company has only three factories in
the UK. This has placed the company in an advantageous position to enjoy the monopoly of local
production in the developed developing markets as compared to other companies (Shaheed,
2015). The recent performance has also witnessed a drop-in sale and thus the company has a
chance to increase its sales, unlike other companies which have to maintain their increase in
sales. Jaguar has also an advantage in the market of India where its mother company TATA is
situated (Robert, 2015). This makes it easier to collaborate with this company.
Organizational change
Big corporate organizations such as JLR are in most cases reluctant to changes in their
internal structures. This can lead to the flopping of a company as it operates in extremely
dynamic environments that are constantly influenced and impacted by changes in technologies
and marketing economic environments (Tom, 2012). JLR is one company that has embraced
both internal and external changes as far as management and structure is concerned. This has
enabled the company to get some of the best wits and thus best facts and decisions can be made
within the organization. This has enabled it to keep soaring high and also enabled it to keep up
with the change in technology (Salome, 2009). Basically, this company has seen itself on the
verge of collapse to being one of the prolific automotive companies in the world. Adoption of
different organizational strategies often results in the need to bring about significant, long-lasting
and beneficial organizational change.

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The company also needs to improve the production facilities so as to maintain its
competitive advantage; currently, Jaguar has improved its manufacturing competence and has
training programs that are inclined to developing the employee skills and problem-solving (Ray,
2013).
Effectiveness for other companies
This competitive advantage can also be effective to other companies. This is so because
they are all in one industry which is automotive industry. Thus, with the proper logistics
management, any other company can be at the helm of other companies (Paul, 2012). Factors
such as the supply chain are an integral part of the entire manufacturing process and a bigger part
of the process is running millions of miles to hundreds of suppliers (David, 2012). Thus, this
shows that if a company has the right channel of the supply chain and has a wide product line
that will pull the customers towards its direction, it can have a competitive advantage over other
companies (Christopher, 2011). However, it is not given that when a company utilizes the above
factors is assured of an advantage in the competitive market; there are other factors which need
to be considered by an individual company. For example, the economies of scale can limit a
company to have an advantage over others despite it being one step ahead of other companies in
other factors.

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The concept of sustainability and its relevance to Jaguar
Land Rover
The concept sustainability can be described as a type of development where the future
implication is looked on while meeting the needs of the current generation. It’s can simply be
referred to as a future oriented development. Sustainability is characterized by the concept of
need (prioritized essential needs) and the inbound limitations exposed by technological
advancement and social organization on the environment’s ability to meet the present and future
needs (David, 2012). Jaguar Land Rover depends mostly on its suppliers for the raw materials to
build its automotive. Its significant impact comes from its products (Bob, 2012). The company
should look to working hard so as to reduce environmental impacts throughout the entire life
cycle of their vehicles and this can only be attained through product innovation. They have to
ensure that the materials meet their clients’ needs as well as they do not have a negative
implication on the environment (Gills, 2011). This is achievable only when there are methods
such as recycling that will ensure materials don’t get depleted in the near future. Jaguar Land
Rover company has gone to extent of using aluminum body parts and this can help greatly as far
as materials to build the automobiles are concerned (Mengan & Laiwan, 2016). The future
success of the company will be built on developing and delivering products and technologies that
will meet the needs of the customers now and even tomorrow. Thus, investment on research,
engineering and manufacturing should be very high to ensure that their products do not have
byproducts that will pose danger to the environment (Paul & Micheal, 2014). On the verge of
ensuring there is sustainable development, several factors should be put into consideration, such
as how the company affects the community and environment around. If the company considers
the set standards of environmental protection and also social responsibilities (Kathy, 2014). In its

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2011 report, Jaguar Land Rover has been awarded several social corporate responsibilities
awards and thus there is a reason for the company to keep up with the norms of conserving and
preserving of the environment, ensuring it is minimal or no emission of hydrofluorocarbons
(Henry, 2015).
Recommendations
Jaguar Land Rover has a very high prospect of success if only it maintains the
competitive advantages and also a sustainable development agenda. It is a very rich company in
terms of innovations, invention, and technology. These being the driving forces behind its
success it thus needs to cultivate more on them so that it can enrich its customer base. It is also
good if the company ventured into other automotive products other than cars only as its rival
companies are dealing with a vast of products. By doing so, it can serve a greater geographical
area.
Conclusion
Logistic management is paramount in any organization as it ensures smooth flow of
operations. In our case study, logistic management has enabled Jaguar Land Rover Company to
be successful in a number of ways. It has also enabled the company to have a competitive
advantage over other companies due to various logistic factors that it has put into consideration.
Packaging, freight, technology is just but some of the factors that cannot be ignored in the field
of automotive. Sustainability has also greatly impacted positively towards the success of the
company. This even though has not materialized fully, each and every company in this industry
should put more emphasis towards a sustainable development agenda.

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REFERENCES
Bob, W., (2012) The New Sustainability Advantage, New Society Publishers.
Chopra, S., (2012) supply chain management (5th Edition). Pearson Education.
Christopher, M., (2011) Logistics and Supply Chain management (4th Edition). FT press.
David, B., (2012) Logistics Management (1st Edition). Trans-Atlantic publications inc.
Gills, C., (2011) The Land Rover History, Northpoint Publishers.
Henry, O., (2015) Agile Project Management: A Quick Start Beginner’s Guide To Mastering
Agile Project Management (3rd Edition). Agile publishers.
John, J., Novack, R. A., Gibson, B., and Bardi, E. J., (2015) Transportation: A Global Supply
Chain Perspective (8th edition). Cengage Learning, p 233-498
Kathy, M., (2014) Market Entry Proposal for Automotive companies, GRIN publishing

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Mengan, J. & Laiwan, C., (2016) Global Logistics and Supply Chain Management 3rd ed.
Cornwell: Willey P. 157-390
Paul, M., (2012) Lean supply Chain and Logistics Management (1st Edition). McGraw-Hill
Education.
Paul, M. & Micheal, K., (2014) Contemporary Logistics (11th Edition).Pearson Publishers.
Ray, H., (2013) Jewels in the Crown; How TaTa Transformed Britains Jaguar and Land Rover,
Elliot, and Thompson.
Robert. M., (2015) Purchasing and Supply Chain Management, South-western college/west
Saloner, G., (2009) Strategic Management, Wiley publisher
Shaheed, H., (2015) Supply Chain Management: A Case study on Jaguar Land Rover and BMW,
Paperwork
Thomas, H. & David C., (2013) Global Supply Chain Management, McGraw-Hill Education
Tom, D., (2012) Common Sense Supply Management, Createspace Independent Publishing
Platform
William, M. & Micheal, B., (2013) The upcycle, Northpoint Press