238SAM: Contemporary Supply Chain Management Report Analysis

This report provides an in-depth analysis of contemporary supply chain management, focusing on the strategies and operations of Jaguar Land Rover and H&M. It explores the design of supply chains, emphasizing the importance of effective management to meet market demands. The report examines the procurement, production, and operational strategies of both companies, highlighting their approaches to managing suppliers and integrating technology. It also analyzes the impact of external factors, such as political, economic, sociological, technological, legal, and environmental influences, using a PESTLE analysis to understand their effects on decision-making. The report discusses the procurement strategies employed by both companies, including strategic sourcing and the use of QR codes. Furthermore, it underscores the importance of adapting to external factors and the benefits of proactive supply chain management. The report concludes by emphasizing the significance of these strategies in enhancing efficiency, reducing costs, and meeting customer demands.

238SAM- Contemporary Supply Chain Management
Table of Contents
Table of Contents 1
Introduction 1
Jaguar Land Rover 1
H&M 2
Design of Supply Chains 2
Impacts of External Factors on Decision Making 3
Procurement Strategy 5
Production Strategy and Operations 6
Reference List 7
Introduction
The process of producing goods and distributing commodities is termed a supply chain.
In this report, I aim to provide information about the designs of supply chains, the
management of supply chains, and the processes involved in them. The report will
apply the modern methods of supply chain management and its strategies. As well as
providing a critical analysis of the decision-making methods in supply chain
management. This report will be focused on renowned business organizations' Jaguar
Land Rover and H&M’s production strategies, operations strategies and procurement
strategies (Hittle and Leonard, 2011).
Jaguar Land Rover
Jaguar Land Rover is a British multinational automotive company specializing in the
production of luxury cars, sports cars, etc. The organization's chief activity or function is
to produce, design, develop, manufacture, and supply vehicles that bear the marks and
label of Jaguar and Land Rover (Wigley, 2013). The company's CEO is Thierry Bollore,
and Gerry McGovern is the chief design officer of the organization. The company is
estimated to generate revenue of about £22.984 billion with total equity of £6.556 billion.
The company is also estimated to have 39,787 employees. The company aims to
reimagine the future of modern luxury by designing and developing (Wigley, 2013).

238SAM- Contemporary Supply Chain Management
H&M
H&M is a Swedish multinational clothing retail company. The company is known to be
the second-largest global clothing store. The organization is popular for its quick forward
style plans for men, ladies, teenagers, and kids. H&M is a globalized brand that
operates in approximately 74 countries and has over 5076 stores. H&M was founded in
1947 as Hennes; later, it was changed into H&M. The company's founder is Erling
Persson (Shen, 2014). The company is known to earn a revenue of US $24.8 billion
with total equity of US $6.919 billion. The company has a total of approximately 126,376
employees working across all its branches globally.
Design of Supply Chains
To adequately manage the customer and market demands, the supply chain
management process must be effective. The management of the supply chain includes
all the activities of the employers, from the production of the product to the distribution
of the product on the market. Supply chain management includes the five chief
operations: planning, procurement, assembly, delivering, and returning. Supply chain
management is beneficial and significant for all organizations. It has many advantages.
Supply chain management strategies can help anticipate problems and eliminate them
as well as helping to dynamically adjust prices and improve the efficiency and inventory
of the organization (Hittle and Leonard, 2011). The supply chain management process
regulates the manufacturing prices of the organization. Jaguar Land Rover and H&M
are multinational organizations that both have huge supply chains. The supply
management and processes of both organizations need to be critically analysed. Supply
chain management covers all the techniques involved in the process; it helps the
organization reduce cost, increase efficiency, and satisfy customers and market
demands by providing access to commodities by monitoring needs and demand graphs.
The Jaguar Land Rover (JLR) supply chain is regional and includes 350 suppliers in the
United Kingdom (UK) and a further 450 suppliers across Europe. The organization has
invested £1.411 billion in research and development to manufacture and develop the
latest technologies which are used in their evolved vehicles or luxury cars. The
company's supply chain also includes 50 global suppliers spread in North America,
China, Japan, India, etc. The organisation includes 2600 suppliers. Jaguar Land Rover
placed importance on suppliers and put extra effort into supplier relations. The business
worked closely with the supplier to eliminate the issues and problems of the supply and
demand sector (Sindi and Roe, 2017). To motivate the suppliers, the organization also
held yearly awards for the best suppliers. “Cooper standard the Automotive Ceska
Republic in the Czech Republic, AutoNavi software company ltd in China, MAG IAS

238SAM- Contemporary Supply Chain Management
GmbH in Germany, Dau Draexlmaier Automotive UK Ltd in UK Lear corporation in
Poland, FPK Lightweight Technologies Coop in Spain" are their best suppliers
according to the Jaguar Land Rover Supplier Excellence Awards held in 2016. For
better understanding and regulation of the supply chain, the company has adopted
technological means. The company is looking for supply chain investment with circular
investment (Edwards, 2012). The company asked to invest in blockchain technology
that provides a circular investment.
On the contrary to Jaguar Land Rover, H&M has a quite successful supply chain
management system. The company places the credit of its success on its double
integrated supply chain. H&M is considered the third-largest retailer in terms of sales.
The company has grown into a profitable organization globally by offering products
demanded by the customers. The company's supply chain relies on the concept of
giving quality to the customers by offering fashion and quality products (Shen, 2014).
The supply chain of H&M contains a few middlemen that buy large volumes, and the
company also has a broad and deep knowledge of designs, textiles, clothing, and
fashion trends. The company aims to buy the right products from the right market to
ensure the quality and cost of the products manufactured. The supply chain of H&M has
an efficient distribution channel. The supply chain of the company consists of Raw
material, manufacturing, distribution, retail, market, or customer (Hilletofth and Hilmola,
2008). The organization's supply chain strategy is based on a continuous search for
"promising, cost efficiency in production and retribution and reduction in lead time for
retail inventory." The organization's reliability in the supply management and integrated
system is the chief component of the organization's success.
Impacts of External Factors on Decision Making
External factors are those which are not in the control of the organisation. The business
cannot eliminate these factors but only regulate and adapt to them. If successfully
adapted to these factors can benefit the organisation. External factors include things
such as Political, Economic, Sociological, Technological, Legal and Environmental
factors. These external factors have a significant impact on the decision-making
process of the organisation as well as its management strategies. External factors affect
the productivity and outcomes of the organization (Dragnić, 2014). External factors
influence the impacting strategies under political, economic, social, technological, and
environmental forces. These factors also help the organization align its internal affairs
and structures by gaining control over the external factors. As stated by Dragnić (2014),
every organisation is affected by these external factors. One of the most effective
methods to analyse these factors is a PESTLE analysis. The PESTLE analysis helps to
better understand the business environment and competitive market. It can also help
the business by initiating strategic thinking and anticipating future issues.

238SAM- Contemporary Supply Chain Management
PESTLE Analysis of JLR and H&M
Political Factors
The primary political factor that JLR would be impacted by is the government support
they have received. In 2019, the company was given £500 million in government-
guaranteed loans in a deal with UK Export finance to help develop electric cars. The
business was also in talks to gain a £1 billion state loan to help recover after the
coronavirus pandemic (Busby 2020). H&M however are impacted negatively due to
political instability. This is because a large proportion of their production process is set
up in Turkey, Egypt and Lebanon. Lebanon has a history of political instability and if
problems were to arise in that country it would affect their production process.
Economic Factors
The biggest economic factor which has affected both Jaguar Land Rover and H&M is
the global recession caused by the outbreak of COVID19. With the outbreak of the
coronavirus many factories had to close which caused economic turmoil across the
globe. BREXIT has also had a significant impact as H&M will now have to pay an import
tariff when they are transporting products into the UK market.
Sociological Factors
Jaguar Land Rover has built a strong brand reputation over the years. This alone draws
in sales for the business as consumers already know the value they are getting and are
more likely to be loyal to the brand. H&M also has strong brand recognition as it is
known to be the second-largest clothing store globally. Furthermore, H&M has launched
a global program for equality which shows they are a business that cares about people.
This coupled with a strong brand recognition can lead to a high volume of sales for the
Swedish multinational.
Technological Factors
Jaguar Land Rover invested £100 million in a skills development programme which will
provide training for its employees. Furthermore, technological advancements for their
vehicles such as noise cancellation for those inside the vehicle as well as system
sensors that adjust sounds played in the car based on the number of passengers.
These technological advancements will help draw in sales. H&M closed down many
stores due to the coronavirus pandemic and instead chose to invest in their online
presence as more demand was placed on e-commerce.
Legal Factors

238SAM- Contemporary Supply Chain Management
The main legal factor which impacts Jaguar Land Rover would be trademark protection.
With the automotive industry being a very competitive market JLR must ensure that they
do not use trademarked technology or designs to reduce the chances of legal disputes.
The main legal factors which affect H&M are the wages and regulations that they must
adhere to. Ensuring that workers are working in a safe environment and are being paid
a fair wage.
Environmental Factors
Jaguar Land Rover is currently trying to be more sustainable by working on ways to
make their cars more efficient on fuel. This will reduce help to reduce their carbon
footprint as their cars are not consuming as much fuel. H&M is looking to make their
business more sustainable by aiming to use a circular approach when making and using
products as well as aiming to use recycled or other sustainably sourced materials in
their products.
Procurement Strategy
A procurement strategy is a technique or methodology used in the timely supply of
goods and products to the markets to align with the organization's goals and objectives
within the supply chain. It is an activity that requires the association of all the
departments involved in the supply chain throughout the organization (Knudsen, 2003).
Procurement strategies are usually focused on reducing costs, minimising risks and
organic growth. Some examples of procurement strategies are risk management, green
purchasing, global sourcing, vendor development, total quality management (TQM),
supplier management and optimization.
Forecasting demand based on the orders instead of using user demand data is
inaccurate in a supply chain. The businesses that do not have direct links with the
consumer lose touch with actual market demand. Jaguar Land Rover has adapted to
technological means in the globalized world to better implement its procurement
strategy. Jaguar Land Rover vehicles are known to be providing cutwork with a unique
style, performance, refinement, prestige, and quality (Mangan and Lalwani, 2016). The
company has integrated strategic sourcing into the manufacturing and designing
departments to enhance the efficiency of this procurement strategy. With the use of
strategic sourcing, JLR is looking to source materials at the lowest possible cost. This
will allow the organisation to increase its profit margin which will then provide the means
to invest further in technological development for their vehicles.
H&M uses QR codes to manage their inventory smoothly and efficiently. QR codes
consist of a uniform set of Bar codes, Labels, Electronic Data Exchange messages, etc.
integration of QR helps H&M in sharing Information data smoothly with their partners

238SAM- Contemporary Supply Chain Management
leading to a more effectively managed Supply Chain. H&M uses QR for products that
have volatile demand, a long resupply time or a short life cycle. The focus on QR helps
H&M get information about high demanded products so they can produce more. The
process of the supply chain starts from the designing and procurement of raw material
and demand. In H&M, point of sale data is used to track customer preferences and
demands. The organization's procurement strategy is based on the supply chain
operation reference model consisting of the plan, source, make, deliver, and return. For
planning, horizontal integration with suppliers and a greater flow of information are
needed (Xuejie et al., 2019). For the second part, the business relies on its partners and
subsidiary companies to design the collection and source raw materials. In the
production process, the first-tier suppliers and manufacturing companies are
responsible. Suppliers are responsible for the delivery of the products and merchandise
to the desired market.
Production Strategy and Operations
The production strategy is the strategy or methodology used by a company for
production and manufacturing processes. The strategy helps the business make any
operational or strategic decisions that are beneficial and significant for the organization.
The production strategy helps the company to follow the corporate strategy and fulfil the
competitive priorities (Meredith and Akinc, 2007). A production strategy also helps in
shaping the long-term future of the business by identifying any possible risks and aiding
the reduction of costs.
Jaguar Land Rover utilizes service strategy and quality strategy in its production
methodologies (Sindi and Roe, 2017). The company is working to make the next
generation of cars more efficient. This is being done by incorporating the use of
aluminium in the vehicle’s framework. With the use of aluminium, the overall weight of
the vehicle will likely decrease which will increase fuel efficiency. The company's global
corporate social responsibility program is generating the right opportunities for the
organization. This is demonstrated in the partnership which has been developed with
Novelis who are also aiming to increase the sustainability of using aluminium (Freeman
and Gaylard, 2008) The operation strategy is focused on the technical aspects of
manufacturing and development. It deals with the production process, quality
technology, and machinery requirement of the production.
The production strategy of H&M is very convenient. After seasons, the designing and
pricing of collections are achieved through twofold designs that involve long-term
planning and real-time design response that speaks for the customer-driven response
strategy. The dependency of the production elevates the production rate of the

238SAM- Contemporary Supply Chain Management
company. The primary operations of the production strategy rely on designers, creative
teams, and pattern makers. Van den Bosch claimed that the business gets inspiration
from everywhere for the designs and collections sold. The company's manufacturing
department regulates 80% of the retail inventory in advance, and the other 20% is
released after the market response (Xuejie et al. 2019). H&M utilizes 700 partner
companies in different countries to manufacture and supply their products. They depend
on their external shorts to manage their production and buying process. The business
fosters close and effective relationships with its partner companies by strategically
locating 30 production oversight offices.
Reference List
Busby, M. (2020) Jaguar Land Rover In Talks Over '£1Bn-Plus' State Loan [online] available
from:<https://www.theguardian.com/business/2020/may/23/jaguar-land-rover-in-talks-over-1bn-
plus-state-loan> [20 June 2021]
Dragnić, D., 2014. Impact of internal and external factors on the performance of fast-growing
small and medium businesses. Management-Journal of Contemporary Management Issues,
19(1), pp.119-159.
Edwards, C., 2012. The future is there... somewhere [supply chain systems]. Engineering &
Technology, 7(12), pp.74-77.
Freeman, C. & Gaylard, A., 2008. Integrating CFD and Experiment: The Jaguar Land Rover
Aeroacoustics Process. In. 7th MIRA International Conference on Vehicle Aerodynamics, pp.
22-23.
H&M Annual Report (2017) available from:
<https://about.hm.com/content/dam/hmgroup/groupsite/documents/en/Digital%20Annual
%20Report/2017/Annual%20Report%202017%20Our%20history.pdf> [20 June 2021]
H&M Foundation (2020) Global Program For Equality – H&M Foundation [online] available
from:<https://hmfoundation.com/project/global-program-for-equality/> [20 June 2021]
Hilletofth, P. and Hilmola, O.P., 2008. Supply chain management in the fashion and textile
industry. International Journal of Services Sciences, 1(2), pp.127-147.
Hittle, B. and Leonard, K.M., 2011. Decision making in advance of a supply chain crisis.
Management Decision.
Innovation | JLR Corporate Website (2021) available from:
<https://www.jaguarlandrover.com/innovation> [22 June 2021]

238SAM- Contemporary Supply Chain Management
JLR (2021) Jaguar Land Rover Launches Lifelong Learning Academy For Its Workforce | JLR
Corporate Homepage International [online] Available from:
<https://media.jaguarlandrover.com/news/2015/09/jaguar-land-rover-launches-lifelong-learning-
academy-its-workforce> [22 June 2021]
Knudsen, D., 2003. Aligning corporate strategy, procurement strategy and e‐procurement tools.
International Journal of Physical Distribution & Logistics Management.
Mangan, J. and Lalwani, C., 2016. Global logistics and supply chain management. John Wiley &
Sons.
Meredith, J. and Akinc, U., 2007. Characterizing and structuring a new make-to-forecast
production strategy. Journal of Operations Management, 25(3), pp.623-642.
Shen, B., 2014. Sustainable fashion supply chain: Lessons from H&M. Sustainability, 6(9),
pp.6236-6249.
Sindi, S. and Roe, M., 2017. Testing and Implementing the Strategic Supply Chain Model. In
Strategic Supply Chain Management (pp. 223-247). Palgrave Macmillan, Cham.
Wigley, A., 2013. Considering mobile learning? A case study from Jaguar Land Rover.
Development and Learning in Organizations: an international journal.
Xuejie, C., Chang, Q. and GuangHao, Z., 2019, August. Research on Innovation supply chain
Management in Fast Fashion Industry——A comparative analysis of ZARA and H&M. In 2019
3rd International Conference on Education, Culture and Social Development (ICECSD 2019)
(pp. 7-16). Atlantis Press.
·