Systems and Operations Management Report - LSBF - JLR Analysis

This report delves into the system and operation management of Jaguar Land Rover (JLR), a subsidiary of Tata Motors, with a focus on its supply chain. It examines the structure of JLR's supply chain, differentiating between direct and indirect material suppliers, and the role of logistics. The report analyzes the contribution of operations and information systems to the organization's strategic decisions, including competitive strategies and market analysis. It also discusses the importance of effective material management, highlighting the role of the materials department and its impact on cost efficiency and customer experience. The report further explores the relationship between logistics and supply chain management, emphasizing the challenges faced by automobile companies and the strategies employed by Tata Motors to ensure business success through effective supply chain and logistics management. The report concludes with recommendations and insights into the complexities of managing a global automotive supply chain.

Running Head: System and Operation Management
System and Operations Management
Shrikant Biyani
London School of Business and Finance

1SYSTEM AND OPERATION MANAGEMENT
Executive Summary
The report highlights about the supply chain management system about a particular
company. The chosen company for this report is Jaguar Land Rover. The supply chain
management is done by Tata Motors as they are the parenting company. The company like the
Jaguar Land Rover has a great reputation in the market and has its strategy with respect to
efficiency, cost effectiveness and leadership.

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Table of Contents
Introduction.....................................................................................................................................3
Discussion........................................................................................................................................4
Name of the Company – Tata Motors Limited............................................................................4
Subsidiaries- Jaguar Land Rover.............................................................................................4
Company overview:.....................................................................................................................4
Task 1..........................................................................................................................................5
Structure of Supply Chain Management of Jaguar Land Rover..............................................5
Contribution of Operation and Information System to Organization’s Strategic Decision....6
Task 2..........................................................................................................................................7
Task 3........................................................................................................................................12
Recommendation...........................................................................................................................13
Conclusion.....................................................................................................................................15
Reference.......................................................................................................................................17

3SYSTEM AND OPERATION MANAGEMENT
Introduction
Integrated business system in manufacturing as the system of bringing organized
components into one system. It provides several software module that develop processes and
store data, this means it is important to access the entire organization. In terms of management,
supply chain management means the flow of services and goods from transportation of raw
material to delivery of finished goods from idea of production and consumption (Martínez and
Moyano 2014). The role of supply chain management is to plan, control, execute, design and
setting objectives to create net value for the organization, constructing a competitive
environment in the economy and computing performance globally. Supply chain management
includes management of inventory into an organization, process of raw material into finished
products and transfer of the finished goods from the organization into finished goods (Harms,
Hansen and Schaltegger, 2013). As the organization attempts to strive on capabilities and
become much more flexible and transfer ownership from material sources to distribution channel
(Wolf, 2014.). For declining the cost and expense of a company, warehouse organization is
concerned with reducing the manpower cost, dispatch of the finished goods to on time delivery,
concern with the storage facilities, inventory management system and loading and unloading
amenities.

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Discussion
Name of the Company – Tata Motors Limited
Subsidiaries- Jaguar Land Rover
Company overview:
Tata Motors Limited formally known as Tata Engineering and Locomotive Company
(TELCO), is an multinational automotive company with its headquarter in Mumbai,
Maharashtra, India (Shah 2014). The company focuses on the production of trucks, vans, cars,
coaches, sports car, military vehicle and construction equipment. The development centers are
based in India, South Korea, Spain and Great Britain. Tata Group started its production of
commercial vehicle in 1954 after establishing joint venture with Daimler-Benz of Germany.
Known as the leading Global manufacturer of automobile, it is recognized as world-class
originality, quality, design excellence and engineering and quality (Mathur and Agarwa,2016).
The aim of the organization is giving quality standardized product and sustainability as a guiding
the corporate citizenship and philosophy. The company has combined the position as Tata
Motors Group through acquisition and merge.
The organization in 2008 Jaguar Land Rover was taken over by Tata Motors Limited.
The activity of Jaguar Land Rover is to develop, design and manufacture vehicles attributing the
Jaguar and Land Rover marques (Clegg et al, 2013). It is Britain’s largest automotive
manufacturer which manufactures, designs and sells the best premium cars in the world. The

5SYSTEM AND OPERATION MANAGEMENT
classification of two iconic brands are Jaguar which has a range of sports cars, luxury SUVs and
luxury sedans and Land Rover, includes premium all- terrain vehicles. Jaguar Land Rover has
four principle for manufacturing facilities at Castle Bromwich, Solihull, Halewood and Engine
Manufacturing center (Chattopadhyay, 2013)
Task 1
The resource management of Jaguar Land Rover means the planning, organizing and
controlling all the activities which are concerned with the materials flow into an organization.
Material management of the company serves the function which are crucial in manufacturing and
finance. The source of proper quality of material is essential for standardized and manufacturing
products. The way of controlling the wastage of material can be controlled by cost of production.
The scope of the management differs greatly from an organization to another organization and it
includes production planning, material planning, inventory control and purchasing, waste
management and machinery movement (Allen et al, 2016)
Structure of Supply Chain Management of Jaguar Land Rover
The supply chain or inventory management has a complex supply chain. The
automobile logistics network can be classified into two: Firstly, Direct material suppliers and
indirect material suppliers. In the first category, direct material suppliers supply the goods which
are used in the manufacturing process (Donnelly, Begley and Collis, 2017). They are termed as
finished goods like auto components which are used to be fitted in the vehicle. The indirect
material suppliers are included in the production process as well as for supporting process such

6SYSTEM AND OPERATION MANAGEMENT
as chemical gasses, paints and pretreatment chemical gasses. The other components which are
included in the logistics supply chain are marketing and sales and after sales services to ensure
that a customer experience quality service (Earley, 2015).
The channel suppliers are closely engaged to the relative channel of the suppliers from
the other regions. Tata Motors believe that a strong bond between the relative suppliers and
dealers contribute in sharing of knowledge and helps to develop alternative capabilities in
manufacturing process (Seuring, 2013). The mutual discussion between the organization’s
suppliers adds to the cost efficiency and it resulted to enhance customer experience.
Contribution of Operation and Information System to Organization’s Strategic Decision
The strategy of the organization provides direction and scope for a long term prospect,
which makes it achieve a positive result in a competitive environment. The aim of resource
allocation allows the stakeholders to meet their forecast by settings objectives and goals and
implementing proper mission and vision for the organization. Corporate strategy helps the
company to determine which sector of the firm should be included or how the allocation of the
resources are to be done. The strategy implemented is important for the top management as it
deals with luxury cars and is affected by the stakeholders in the company and it guides in
decision making strategically in every aspect of the organization (Kapferer and Michaut, 2014).
The second strategy of the organization has targeted to study its competitive market in the
economy and aimed in competing in a successful technique. The aim is towards achieving needs
of the customers, choice of the product, creating new opportunities and analyzing the
competitive advantage of the rival firms. The third level of strategy is considering alternatives
ranging from a minority stake sale to finding a venture partner that would jointly develop

7SYSTEM AND OPERATION MANAGEMENT
vehicles and lower costs, said the people, who asked not to be identified because the discussions
are private. The company is holding early-stage talks with potential advisers, and the
deliberations may not lead to any transaction (Hennighausen et al, 2016).
The automobile value chain includes the likes of the sales and marketing and also the
after sales service of the automobile company in order to ensure a better and effective customer
experience through the inclusion of the dealers and the services (Chavez et al. 2016). The
management of the business organization follows a competitive and innovative strategy that
helps it to differentiate itself from the other companies in terms of logistics and stay ahead in the
profitability race of the vehicle market.
The materials department of Jaguar has more task in hand as because the company is one
of the largest producers of luxury cars and SUV (www.jaguarlandrover.com 2019). The close
harmony and harmony in between all the different kinds of the departments helps to ensure the
success of the supply chain of the business organization. The employees of the materials
department are often charged by the other departments as to be the people responsible for the
supply of low quality materials (Luthra Garg and Haleem 2015). There are cases of high
rejection of goods because of the poor quality of the business materials in the production
department. Therefore there needs to be a proper relationship in between the materials and the
production department especially in case of Tata Motors.
The tendency of the production department to blame the materials department for the low quality
of the products can be easily reduced and mitigated accordingly. The employees which are
required and then recruited by the management of Jaguar are selected by the personnel
department of the company.The partnering with the suppliers and the dealers for the sharing of

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different types of related knowledge and the capacity development process adds to the efficiency
of the cost and also helps the management of the automobile company to provide the necessary
perspectives which is helpful for the efficient experience of the customers (Chavez et al. 2016).
In the modern business market, there are examples when business organizations work in
tandem to get the final product in hand of the end user (Wang et al, 2016). The supply chain
network of these different business organizations work in a systematic and scientific process that
helps in the successful delivery of the end shipment.
Task 2
The term logistics and supply chain management are used in a different manner in the
modern competitive world. Logistics and supply chain management of a company has an
important role to play in the success of the business in the competitive business market. The
logistics forms an important part of the supply chain management process (Christopher., 2016).
Logistics has totally entered into the business and supply chain management lexicon gradually
with the passage of time. The different range of the business activities in the logistics involves
the likes of the procurement of the raw materials, transport of the raw materials or finished

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products, storing these products in the warehouses and then finally delivering them to the end
users.
The new trends and changes in the modern business have forced the business
organizations to bring in a radical change in the supply chain management. The business firms
have been finding it difficult to deal with the high level of uncertainty which is mostly technical
in nature (Coimbra, 2013). The technical nature of the supply chain management has made the
management of the business to face a number of different challenges. The supply chain
management of the automobile companies are not simple in nature. A number of different factors
are dependent on the formation of a proper and efficient supply chain of these organizations.
Like other automobile companies the supply chain management of Tata Jaguar and Land Rover
is quite complex in nature. The complex nature of the supply chain management of the company
has forced the management of the business organization to separate the logistics network of the
company into two different types. This includes the likes of Direct as well as indirect material
suppliers.
The management of Tata Motors engage the channel partners and the partners of the
supply chain in a close manner to ensure the business success (www.jaguarlandrover.com 2019).
The materials department of the company has a critical role in the supply chain management
process of Jaguar Land Rover. The materials department can effectively contribute to the
profitability of the business organization as because the following function generally results in
the major portion of the cash outflow in the business. It is important for the organization to give
due importance to the materials manager as they have a major role in the reduction of the
material cost by the effective management of the different kind of the materials needed for the
business.

10SYSTEM AND OPERATION MANAGEMENT
The materials manager in charge of Jaguar Land Rover of Tata Motors has his task cut
out as because he is in charge of a number of different types of tasks in order to increase the
profitability of the business. This includes the likes of the suggestion of a number of different
new opportunities and alternatives in order to reduce the cost of the dependence on the import of
the raw materials. The manager can also suggest a number of different alternatives in order to
substitute the imported products (Chavez et al. 2016). The import substitution ensures the
savings of the different kinds of the valuable foreign exchange. This kind of activities are useful
for the growth of the business economy and ensure the profitability of the business organization
The presence of a mutual trust and understanding helps the production department and
the materials department of Jaguar Land Rover to produce a coordinated activity that can help in
the market success of the business organization. It is not the task of the materials department to
select the unwanted and ineligible employees from the other departments of the business.
According to, Bray Serpa and Colak (2019) the materials department enables the employees to
be expert and capable of handling the different kinds of the activities like that of the invitation of
the tenders, preparation of the comparative statements, meeting the suppliers of the business and
aligning the tasks of the business in a systematic way. Consumers are the main source of success
in the modern day business market and therefore it is the task of the business organization to
ensure the satisfaction for the customers in the proper manner.
The differentiation strategy of the cars produced by Tata Motors needs a second thinking
considering the current stage of the business market. The strategy for competitive advantage of
the organization needs to be in line with the proper selection of the products. The management of
Tata Motors in charge of Jaguar Land Rover has divided the strategy of the cost leadership into
two different types which includes the likes of the cost leadership and differentiation. The cost

11SYSTEM AND OPERATION MANAGEMENT
leader in the case of Jaguar Land Rover has been the creation of the luxury cars that is unique
and most advanced in the market (Bartnik and Park 2018). The selection of the cost leader
strategy has been considered in this case by ensuring the meeting of the minimum requirements
by the management. The differentiation strategy of the automobile company has been to ensure
the creation of a certain attribute of the products that is completely different from the other
similar products in the market. Jaguar Land Rover has been able to provide the unique technical
aspects related to information technology in each of its luxurious cars which has been unique in
nature (Luthra Garg and Haleem 2015). Apart from this the management of Tata Motors have
always focused on the implementation of the niche marketing strategies for Jaguar Land Rover to
ensure its epic value among the global consumers which seen a positive outcomes.
DHL Company which has been one of the largest logistic operators globally has been
tasked with the management of the logistics operations of the business. The Company has
launched a European based in bound service of (www.jaguarlandrover.com 2019) or carrying out
the logistics management in a proper and efficient manner. The strategy undertaken by DHL is
capable of reducing the expenses and different miscellaneous costs which on the other hand can
reduce the efficiency of the supply chain management. The transportation services, presence of
large number of inventory and warehouses along with the reverse logistics management has been
efficient in the success of the business.
Task 3
The reverse logistics paradigm generally plays an important role in the improvement of
the different other platforms of the business perspectives. According to, Bartnik and Park (2018)
the environmental, social and cultural perspectives of the business organization must be
considered during the formulation of the supply chain strategy of the organization. The