Understanding Operations, Logistics & Supply Chain Management for JLR

This essay examines the operations, logistics, and supply chain management practices of Jaguar Land Rover (JLR). It explores the company's approach to new product development, specifically focusing on the JLR Blue Zinger, and its application of the Product Development Toolkit Model, including techniques like Quality Function Deployment, Target Costing, and Failure Modes and Effects Analysis. The essay also analyzes JLR's logistic mix, encompassing production planning, inventory management, and transportation strategies, including the utilization of Just-in-Time and Lean Production methods. Furthermore, it identifies key challenges faced by JLR, such as overstocked inventories, cost and location issues, and environmental concerns, and offers potential areas for improvement to enhance sales, product features, and profitability.

Understanding Operations,
Logistics and Supply Chain
Management

Contents
FORMATIVE ASSESSMENT........................................................................................................1
SUMMATIVE ASSESSMENT.......................................................................................................3
REFERENCES................................................................................................................................8

Essay- Understanding Operations, Logistics and Supply Chain Management
Operation management refers to that branch of management which deals with
developing, monitoring and controlling the process of production and also bringing
improvements in the processes if deemed necessary with new trends in market and technology
(Jacobs, Chase and Lummus, 2014). It involves ascertaining and adopting those techniques that
result in achieving high efficiency while conducting operations of company. Supply chain
management is the process of flow of products and services from the point of origin to point of
consumption including activities like transportation and storage of raw materials and work-in-
progress inventories. On the other hand, logistics refers to the process of planning, monitoring
and executing the flow of goods and services from origin to destination in an effective and
efficient manner in order to meet consumer needs and preferences. The present report is based
upon Jaguar Land Rover which is a multinational corporation situated in United Kingdom. This
company is involved in carrying out Research and Development, manufacturing and assembling
of vehicles and its parts. This report mainly assesses two issues that are faced by company while
carrying out its operations. These are namely, new product or service development and process
along with logistic mix. Also, this report includes solutions to the identified problems along with
recommendations for the same.
FORMATIVE ASSESSMENT
Selected Business Organisation
In this, the selected organisation is Jaguar Land Rover which is an automotive company
involved in designing, development, assembly and distribution of vehicles. The company offers
luxury cars along with sports cars, four wheel drive off-road vehicles and many other related
vehicle parts and services.
Two selected areas of Operations and Supply Chain Management
The two operational areas of selected in context of Jaguar Land Rover are:-
 New product or service development and process
 Logistic mix inclusive of channels, networks, transportation, managing inventory and
capacity
Supply chain management refers to all those activities that take place while transforming
the raw materials into finished goods. This concept deals with the development of products of
Jaguar Land Rover in a way that it reaches the market and gain widespread acceptance and
1

satisfaction from customers. Also, it includes activities like procurement of raw materials, using
them for production, transportation, storage and shipping of final product. It is a representation
of the time and efforts of suppliers for designing and developing and then executing the supply
chain which is effective as well as economic for the product or service. Supply chain is all about
manufacturing, product development and using information technology to direct the vehicles of
Jaguar Land Rover towards the customers company plans to target and are themselves willing to
make the purchase. Automotive supply chains are complex as each vehicle of Jaguar Land Rover
comprises of a huge number of parts that come from various suppliers (Clegg and et. al., 2013).
With the aid of technology, company utilises this to develop and design cars that best suit the
needs and requirements of consumers appropriately.
Theories and techniques that should be applied
Product Development Toolkit Model include a set of tools that are used for development
of product from the stage of ascertainment of consumer needs to development of product
accordingly to monitoring and controlling of product development plans. It includes stages like
Control Plans, Failure Modes and Effects Analysis, Design for Manufacturability/Assembly
Assessment and Quality Function Deployment. This model is implemented while Jaguar Land
Rover makes new products. Herein, the company is planning to launch a new car with the name
Jaguar Land Rover Blue Zinger. Company is developing the car with the aid of technology and
innovation. Also, to make this car reach the market, company is utilising right set of distribution
channels and warehouses so that it can meet the demands of consumer. Company used two
techniques while carrying our the product development process, namely, Just-in-time (JIT) and
Lean Production. While JIT involves processes that aim at minimising the time between
procurement of raw materials (vehicle parts) and converting them into finished goods (cars),
Lean Production refers to the conduct of business operations in a manner that result in cutting of
costs as well as maintenance of high quality work along while ensuring the efficiency of work.
Potential areas of improvement
 The sales and revenue has not grown much in UK and other European Markets. Company
has the capacity to take actions or bring innovations to increase the product reach and
consequently, the sales.
 Company is capable of bringing improvement in the features of car so as to meet the
requirements and preferences of customers.
2

 Also, there is a scope of improvement in terms of margins and profitability as company's
cash flow after investment is negative.
SUMMATIVE ASSESSMENT
New Product Development is concerned with the process of designing developing the
product so as to meet the needs and requirements of consumers. This process involves the
launching of a new product in market to gain acceptability in market and to increase the name
and brand position of entity in industry. Jaguar Land Rover (JLR) is also launching a new car
model named JLR Blue Zinger. This car is equipped with high security feature where the access
to car could be given to 5 persons by connecting the mobile phone with JLR Blue Zinger and
scanning their fingerprints. Thus, during the time that the car is locked, if any unauthorised
person tries to open the gate of car, the sensor will identify it and their hands will be electrified
and thus, they will not be able to free their hands from the door handle. Also, alarm systems of
the car would ring, thus, deploying to inform the bystanders and owner of car about the attempt
of theft. For designing and developing this car with high-tech security and innovative features,
Jaguar Land Rover uses Product Development Toolkit Model. It involves many stages discussed
below.
Quality Function Deployment is a powerful tool used for doing planning about the
product and characteristics which the product would be equipped with. Jaguar Land Rover by
capturing the Voice of Customer (VOC) and performing the competition and market analysis is
launching JLR Blue Zinger with high security features by the aid of technology and sensors
(Clegg and et. al., 2013). In this feature, no unauthorised person is provided the access to this car
unless allowed by the 5 persons who are identified as owners or users of car. This feature helps
the company in building its corporate by providing security to them from the threat of theft.
Target Costing is a strategy developed by companies keeping in consideration the market
situations and then deciding upon the price of product such that desired sales volume can be
achieved. Jaguar Land Rover decides a fixed price (non-negotiable) for the car. The target
audience of company while launching this car is mainly middle and elite class individuals who
will be able to afford the car easily. Cost of the car is decided by company after taking into
account all the factors like security, features and quality. Furthermore, JLR prepares a cost sheet
while designing and developing the car and includes finance utilised in relation to material cost,
manufacturing cost, overheads, fixed cost and scrap. Design for Manufacturability/Assembly
3

basically are those principles considered while designing assemblies such that they can
manufacture even more. This process helps in reducing the cost of manufacturing the product
along with the cost of fabrication and assembly. Jaguar Land Rover's new car is equipped with
features like alarms and sensors, thus, the company ensures that all the parts of car are assembled
at a fixed place which will reduce the cost of transportation which adds to the product
development cost (Ziebart and Rover, 2014). Enterprise is entering into a period of automotive
revolution wherein factors like political, legal, environmental and social challenges are
continuously posing threats to company so that it can develop new ways of design and
development of cars. Thus, JLR is seeking new solutions around the electrification of
powertrains. Company uses software for carrying out the assembly of car. Failure Modes and
Effect Analysis (FMEA) is a method used to ascertain and analyse the probable issues related to
reliability of product development cycle so that necessary actions can be taken in timely manner
to combat these. Jaguar Land Rover uses this as a powerful tool to determine the major issues
while designing and developing the new car, JLR Blue Zinger. In this car, company is bringing
reflection of Artificial Intelligence and high-tech practices so as to provide the security feature in
car. Also, using this analysis, company can ascertain failure modes and then ascertain such
actions that can reduce chances of failure while introducing the product in marketplace. Control
Plan is a set of actions that are necessary at each step of process development so as to ensure that
the output in terms of product is in control. Jaguar Land Rover develops control plan to present
in a written form and communicating the plan for development of JLR Blue Zinger. Company
makes this plan to make sure the quality of components, features and final product (Blue Zinger)
so that it can meet the needs and requirements of consumers in marketplace (Rebolledo-Mendez
and et. al., 2014).
Logistic mix is an essential element of supply chain management and consists of a
number of components. These are, namely, production planning, inventory management, storage,
transportation, forecasting demand, material handling, packaging, distribution, customer services
and after sales activities. In relation to JLR Blue Zinger, company procures vehicle parts from
such suppliers who assure about the delivery of high quality components. Also, Jaguar Land
Rover uses Direct Distributors as a medium of distribution. These dealers directly come in
contact with customers so as to communicate the features and components of car in an effective
manner such that more people can be influenced to purchase the new car launched by enterprise
4

(Earley, 2015). Transportation adopted by company is such that it is feasible with all of the
mediums such air, sea ports, road etc. All of these are effective ways through which company
can make the car reach the market and customers. Jaguar Land Rover equips the car with high-
tech features like alarm, sensors, electrification. Also, to manage the inventory properly,
company uses two techniques, namely, Just in Time and Lean Production. JLR uses Just in Time
approach to minimise the time lag between the procurement of parts of car and executing the
final production and development (Kumar, 2017). By this, company aims at eliminating any time
that is wasted from the sourcing of raw materials to completion of finished goods. Furthermore,
Lean Production technique is utilised by entity to reduce the overall cost of production, design
and development of car. With the help of this tool, company tries to eliminate the wastage during
process along with ensuring the quality quotient of new car. Also, by using this approach, Jaguar
Land Rover eradicates any activity that does not add value to the process of production like
repairs of faulty components, holding back of stock etc. The major focus of this enterprise is
upon ascertainment of needs and requirements of consumers and then introducing products that
develop solutions for the needs.
While carrying out the production and supply chain management, Jaguar Land Rover
faces a number of issues. These are overstocked inventories, cost and location issues along with
environmental and ethical concerns. In case of overstocked inventory, the issue is that company,
at times, keeps stock more than needed which gives rise to the this problem. It is required by JLR
to keep its inventory well stocked and not overstocked. With fluctuations in demand for
customers, firm will produce cars accordingly and aim at maintaining and enhancing the quality
(Ganescu, 2012). In case of cost and location issues, firms need to ascertain that cost for the car
that is affordable by majority of people yet maintains the quality quotient of the parts of car.
Normally, the cars manufactured and distributed by company has a high cost associated to it.
Also, to overcome the location issues, company can consider various alternatives like relocation,
maintaining large customer base, etc.
All of these are the issues faced by Jaguar Land Rover while dealing with operations,
logistics and supply chain management. Thus, it is required by the managers of Jaguar Land
Rover to take into account these problems while launching JLR Blue Zinger. Also, it is
imperative to take measures to resolve these issues and bring improvements in the new product
or service development process so as to make sure that these issues do not hamper the production
5

and supply of the new car. Top managers of Jaguar Land Rover should adopt Total Quality
Management (TQM) which is a tool used by entity to ensure that the quality of each stage of
operation is maintained while carrying out the production and supply activity. Furthermore, it is
required by Jaguar Land Rover to consider the environmental and ethical concerns while
conducting activities and processes of manufacturing and selling JLR Blue Zinger. These include
activities like carbon footprints, waste reduction, sustainable development, recycling of waste
and release of toxic chemicals and other substances while manufacturing of the new car (Banks
and Stanton, 2016). Also, it is necessary that firm adopts methods and techniques that are in
contrast with technological changes taking place in competitive businesses and industry. Along
with it, HR managers of JLR need to hire skilled, competent and talented professionals who
possess the potential and capability to take company to great heights. In case firm ascertains and
analyses the demand of product and keep only the required raw materials and work-in-progress
inventory, then company can ensure that existing inventory will not have that time lag that it can
be wasted. Also, environment and ethics need to be considered by Jaguar Land Rover while
manufacturing and distributing the JLR Blue Zinger. While carrying out the operations
concerned with development of the new car, company should adopt methods and techniques that
take into account concerns like pollutions, diesel emissions, carbon footprints, wastage along
with making sure that the latest technology and innovation is being used by the enterprise
(Mangan Lalwani and Lalwani, 2016). Also, Jaguar Land Rover should follow all the norms,
values, laws, regulations set by society as well as government. Also, enterprise can adopt Six
Sigma as a strategic tool to bring improvements in its new product development process. Service
Delivery system is the configuration of technological as well as organisational networks design
to render such amenities which can give high satisfaction to customers and meet their
requirements. All of these are the measures that can be adopted by company to tackle various
issues faced while carrying out new product development process, logistics and supply chain.
To ensure the long term existence and profitability of Jaguar Land Rover, it is necessary
that business keeps into consideration three dimensions, namely, environmental, economical and
social factors (Christopher and Peck, 2012). Social factors include the attitude, norms, values,
traditions, behaviour, lifestyle of consumers. These must be taken into account by Jaguar Land
Rover to make sure that company earn high profits while launching JLR Blue Zinger. Economic
factors include components like interest and inflation rate, buying power of consumers which are
6

essential for any entity. The cost of the new car should be economic so that it does not bring
losses to company yet is affordable by people. In relation to environmental concern, it is
necessary that the new car or any of its parts or features should not pose any harm to public.
From the above discussion, it can be concluded that new product development and
logistics are the two major issues faced by an entity that need to be timely combated so as to
ensure the sustainability of business in the long run. Also, it has been analysed that adopting
tools and techniques like Six Sigma, Total Quality Management (TQM) and other measures,
company can ensure bringing innovation as well as maintaining the quality of products. Also, it
has been observed that the significance of environmental, economic and social factors needs to
be ensured by managers to gain widespread acceptability among people.
7

REFERENCES
Books and Journals
Banks, V. A. and Stanton, N. A., 2016. Keep the driver in control: Automating automobiles of
the future. Applied ergonomics. 53. pp.389-395.
Christopher, M. and Peck, H., 2012. Marketing logistics. Routledge.
Clegg, B. and et. al., 2013. Governing inter-organisational R&D supplier collaborations: a study
at Jaguar Land Rover. Production Planning & Control. 24(8-9). pp.818-836.
Earley, S., 2015. Analytics, machine learning, and the internet of things. IT Professional. 17(1).
pp.10-13.
Ganescu, M. C., 2012. Corporate social responsibility, a strategy to create and consolidate
sustainable businesses. Theoretical & Applied Economics. 19(11).
Jacobs, F. R., Chase, R. B. and Lummus, R. R., 2014. Operations and supply chain
management (pp. 533-535). New York, NY: McGraw-Hill/Irwin.
Kumar, N., 2017. Milestones in Business Ethics. Journal of Industrial Relationship, Corporate
Governance & Management Explorer (e ISSN 2456-9461). 1(1). pp.26-32.
Mangan, J., Lalwani, C. and Lalwani, C. L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Rebolledo-Mendez, G. and et. al., 2014. Developing a body sensor network to detect emotions
during driving. IEEE transactions on intelligent transportation systems. 15(4). pp.1850-
1854.
Ziebart, W. and Rover, J. L., 2014. The customer expects the latest technology-challenges for a
premium car manufacturer. In Conference on Future Automotive Technology Focus
Elektromobilltät, Veranstaltungsforum Furstenfeld.
8