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Jaguar Land Rover Management - Essay Example

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A variety of techniques and strategies continue to be employed by various organizations in order to ensure good management of their resources in the supply chain. The focus of this paper is on Jaguar Land Rover,a British automotive company whose headquarters is found in Whitley,Coventry…
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Jaguar Land Rover Management
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Сontents Сontents Executive Summary 2 Introduction 3 Sources of data and information 4 Legal requirements on use and storage of data and information 6 Decision Making Framework for the selection of Suppliers: 7 Analysis of the Present Information: 7 Price 8 Competitive 8 Reliability 8 Proven performance and experience 9 Warranty, insurance and bond provision 9 Differences of the Supply Chain of New Vehicles to Previous Ones: 9 Competition 10 Addressing Quantity, Quality and Costs in the Supply Chain. 10 Analysis of the Customers Role in the Supply Chain: 11 Difficulties in the New Supply Chain: 13 Bibliography: 16 Executive Summary A variety of techniques and strategies continue to be employed by various organizations in order to ensure good management of their resources in the supply chain. This also involves the use of relevant information in decision making and deploying marketing techniques which will ensure the success of the business. The trend continues even in international organizations that focus on a wider market with varied needs. Jaguar Land Rover, a British multinational automotive company whose headquarters is found in Whitley, Coventry, United Kingdom is a case in point. The focus of this paper is on Jaguar Land Rover (JLR). Introduction Over the years, organizations have continued to identify and implement new strategies to ensure that they meet the needs of their consumers and reduce harm which may result from use of a product or service. In different industrial sectors, companies continue to use knowledge and innovative tactics to develop standardized goods which can easily and comfortably be used without causing harm to the consumer (Akȧli, 2005). Precautionary measures are put in place so that the products and services cause little harm to the communities that consume them. Supply chain management has been used as one of the strategies through which organizations can integrate key business processes across the supply chain. This calls for understanding of supply chain and supply chain management. Supply chain is defined as the a system involving the use of information, activities, people, organization and resources that work to ensure that products or services is moved from the supplier to the consumer (Shtub & Karni, 2009). They are the link between the supplier and the consumer by ensuring that the supplier gets the goods to the target market and that the consumer can easily access the goods and services they need with ease (Wu & Blackhurst, 2009). With this in mind, supply chain management would therefore refer to all attempts by the management and planning department of an organization to procure, coordinate, and convert and all other management activities that will ensure the success of the supply. It fosters coordination of activities with and across the various sectors of production, transportation, storage and distribution of goods and services. Channel partners may include intermediaries, suppliers, service provider and consumers which form a chain-like link through which the producer and the consumer are connected. Supply chain management has continued to be the most convenient way through which organizations can be able to gain knowledge they need in decision making (Wu & Blackhurst, 2009). The decision making process includes all activities which help us make informed choices that will lead to the overall success of the organization. In the automotive sector, there has been consumer demand for better quality product which meets the client needs of security, comfort, class, and has reduced negative effects on the environment (Akȧli, 2005). This means therefore that the organization in the automotive sector needs to not only understand but also address the needs of the consumers in their innovative docket. The recent scenario has been on the need to develop a better alternative source of fuel for vehicles that will cause little harm to the environment. Jaguar Land Rover a Britain multinational automotive company Whitley, Coventry, United Kingdom, based organization has taken up the task to ensure the development of electricity fueled cars which critically addresses this need (Bailey & Clancy, 2010). This innovation calls for the need to implement new supply chain strategies and form new supply chain networks with globally based suppliers to ensure success in the distribution of the product. Sources of data and information In order to come up with better supply chain, we need to identify the sources of data and information regarding suppliers. For us to be success full in this, there is need to understand all stakeholders in the supply chain such as the initial supplier, the supplier, the manufacturer, a customer and the final consumer (Shtub & Karni, 2009). We can obtain data and information from the supply chains that exists. This can be done through involvement of key players in the supply chain. The suppliers may give us credible information which we could apply in ensuring the success of our supply chain (Shtub & Karni, 2009). The customer for example can provide critical information that will be utilized to ensure that subsequent decision making about the supply and value chain addresses the inadequacy pointed out by the consumer. Legal documents such as the constitution could also be of great benefit as a source of information. They provide us with relevant information we may need in addressing legal matters concerning the supply chain we intend to create (Shtub & Karni, 2009). Desk review of literature about the supply chain in books, journals, and magazines may play an important role of informing the organization on how to develop an effective and efficient supply chain (Akȧli, 2005). Management needs to know current market trends in order for them to effectively work their way through the intended marketing system. Documented past experiences may also help focus on the future of the organization. Jaguar Land Rover also needs to critically analyze the past experiences and not only learn from them but also improve on them in order to create better supply chains. Information can also be obtained from records of JLR, about their sales, marketing and production records. It is also from these records that we can acquire the knowledge about close business partners who can be useful in the supply chain of the organization (Bannock, 2014). JLR can therefore use vital information sources within the organization to enable them identify strategies and entities which can fit within the supply chain (Bailey & Clancy, 2010). Decisions made in the company will be based upon information collected at these different levels. Legal requirements on use and storage of data and information Legal and ethical issues arise every time secondary information is collected, used, stored, or manipulated. There is need for analysis of these legal and ethical concerns to be addressed (Shtub & Karni, 2009). These issues include: Seeking informed consent from the initial research respondents who contributed to the knowledge we are using (Piramanayagam & Chong, 2012). This helps to protect the organization from any adverse effects that may result from being sued by the respondents and their employees. Informed consent should not be sought once and for all. Secondary researchers need to ensure that the data and information they are using is consented by the relevant respondents. Whether informed consent is truly “informed” remains a mystery to many researchers (Akȧli, 2005). Informed consent therefore still remains a recurrent process since the realization of the reflexive nature of any research be it primary or secondary. Trust issues also emerge because researchers tend to question the accuracy of the initial researcher in collecting, analyzing and documenting the data (Wu & Blackhurst, 2009). With this in mind, we are met with the question of whether or not we should continue to utilize this information or should we just give the previous researcher the benefit of doubt (Bailey & Clancy, 2010). Secondly, we need to avoid plagiarism by acknowledging the work of others whenever we use their work (Wu & Blackhurst, 2009). This is the act of presenting the works of another person as own. It involves reproducing the actual language and thoughts of another author or closely replicating it without seeking permission from relevant authority (Akȧli, 2005). This will reduce brushing shoulders with authorities on legal matters and problems that come with it. There is need to avoid prevent duplication of secondary data because this is a breach of the intellectual property rights (Bannock, 2014). The intellectual property rights protect the rights of an individual or groups of individuals from unfair exploitation where other people use their work and benefit from it without their knowledge. Decision Making Framework for the selection of Suppliers: There is a need of enacting and developing a decision making framework, for the supply chain management, and this can also be used for purposes of making a strategic decision. Three theoretical frameworks in decision making can be adopted by Jaguar Land Rover in order to ensure the success of the supply chain they finally get to choose. Decision-making strategy and supply chain management can be used in developing theoretical framework for the selection of suppliers (Khan & Zsidisin, 2011). There is a need of coming up with one better strategy, that would ensure that Jaguar Land Rover is able to come up with one better method of attracting the most consistent and reliable suppliers (Akȧli, 2005). This would ensure that the company is able to meet the demands of its customers (Bannock, 2014, Sehgal, 2009). Analysis of the Present Information: Decisions regarding the choice of a supply chain are based on a number of various reasons and information sources (Leeman, 2010). JLR must ensure a strategic approach to decision making. Supplier’s strategic location is a key attribute upon which we are likely to we may have based our decision. It includes all issues revolving around (Bannock, 2014). This can be done through enterprise research planning which utilizes computer software to integrate all functional parts of the organizations for the realization of a common goal (Sehgal, 2009). Price Suppliers need to have the capability to supply the organization with the much need raw material at a pocket friendly price (Shtub & Karni, 2009). This would therefore mean that for any entity to qualify as a supplier, they must have the capacity to timely, efficiently and effectively supply raw materials as expected of them by the Jaguar Land Rover Company (Hübner, 2007). The supplier should meet this condition in order to be considered qualified for the task. Competitive Suppliers should also have a competitive pricing of the raw material. In order to make a profit of good margin, Jaguar Land Rover needs to only allow suppliers with the lowest offer in terms of price. This will ensure that they cut on cost and maximize on profit (Bannock, 2014). However, this should not affect the quality of the supplies. The best quality with the lowest price receives the first consideration when it comes to suppliers (Khan & Zsidisin, 2011). This will help in maintaining and improving the standards of the products. Reliability The supplier must be reliable in order for them to get the tender. Suppliers must be able to deliver the supplies needed for manufacturing in time for them to be considered reliable (Wu & Blackhurst, 2009). Unreliable suppliers tend to delay the whole production process leading to the reduction in the profit margin (Akȧli, 2005). It sometimes costs the company its clients because of delayed payment. The financial stability of the supplier is also a key attribute. Suppliers need to be financially stable in order for them to be able to make mass supplies and still remain operational as they await their pay (Ivanov & Sokolov, 2010). This will ensure that the company adequate supply and are not always under pressure to pay upon delivery. Proven performance and experience They should also have proven performance and experience. This will ensure that all suppliers have experience in handling their business and therefore they can be dependable and trusted to deliver. This is proven through legal documents and other documented proof of their performance (Khan & Zsidisin, 2011). Warranty, insurance and bond provision These amenities should be provided for by the prospective supplier in order for them to be considered for the position in the supply chain (Axson, 2013). If their supply warranty is long, then it is better. Insurance should also be provided for in order for the company to be assured of quality and so that they do not suffer loss in case of damage (Sehgal, 2009). Differences of the Supply Chain of New Vehicles to Previous Ones: Given that the new vehicle is an improved version with better fueling system that depend on electricity among other features, it is expected that its price will be slightly higher than previous vehicles (Edmonston, 2013). The supply chain also needs therefore to be slightly different when compared to the previous supply chains. The previous supply chain for instance many intermediaries before the product finally reaches the final consumer (Akȧli, 2005). This is done to strategically manage the inflation that comes with the use of many intermediaries. For instance, the organization may only have to one supplier and various selected retail shops (Leeman, 2010). Competition Significant differences may also be noted in the two supply chains because there is need to ensure that all legible entities in the supply chain are competent enough to handle the new product in accordance with the set standards (Axson, 2013). There is a need of ensuring that applicant suppliers and distributors in the supply chain are dependable and up to the task tabled before them. This will leave a small gap for entities in the supply chain as many of them will remain customers (Sehgal, 2009). It will most likely have more competent entities. As a result of the learning from previous experience, JLR is likely to take into consideration previous suppliers who have been effective and efficient in their delivery of supplies (Coyle & Coyle, 2009). Addressing Quantity, Quality and Costs in the Supply Chain. There is a need of maintaining the quality of the products, and this is achieved through an efficient decision making process (Edmonston, 2013). An efficient decision making process would allow all the stakeholders of the company to have a role in the process of manufacturing the product, hence having a sense of ownership to the project (Axson, 2013). Standardization measures will be put in place in order to ensure that the quality of the goods is not compromised despite the mass production. JLR must set minimum standard requirements to be met by the organization in order to for any entity to be considered part of the supply chain (Heisig, Mertins & Vorbeck, 2003). This however does not include the customer. There is also the need to curb counterfeit goods which may in one way or another have a negative impact to the client. This will ensure aspects of warranty and other key attributes are addressed by the company (Akȧli, 2005). Insurance and quality assurance measures are put in place to ensure success in supply chain. Quantity shall be determined by the ability of the organization to stock and sell the vehicle. Electric powered vehicles will be sold in larger quantities if the supply chain has the capacity to stock and distribute the product and service (Coyle & Coyle, 2009). The cost of goods will be addressed through the use of standardized prices where the producer JLR has the monopoly of determining market prices at both wholesale and retail levels. Insurance and warranty is another key attribute which enables the maintenance of quality (Axson, 2013). These two factors ensure that in case the quality of a product if lost, a client is compensated. Insurance protects all entities in the supply chain from the damage that may occur and lead to losses at any stage in the supply chain (Coyle & Coyle, 2009). This will therefore imply that the entities within the supply chain will be protected from losses that occur as a result of accidents, and other causes. Analysis of the Customers Role in the Supply Chain: The essential role of customers in a supply chain cannot be ignored by any serious supply chain management. Customers provide vital information in form of feedback that can be used to improve the products and services of any organization (Chan, Lettice & Durowoju, 2012). In the case of JLR, the customer is the main source of information from which insights are developed on how best to improve the product or service for the good of the client (Axson, 2013). This information is of great essence to the organization because it enables improvement of the product or service in order to meet the needs of the consumer (Edmonston, 2013). The customer also provides the necessary information about the success of the supply chain through feedback interviews where they are able to pin point t areas of weaknesses as experienced by them (Bailey & Clancy, 2010). Customers also help the company in marketing the product that they intend to supply (Akȧli, 2005). Other customers can also learn of the existence of a new product in the market through sharing of information with those who have bought and are using the product already. Consumers in the market chain therefore serve an important service as advertisers of new products that come into the market (Leeman, 2010). For example, the consumer can act as an advocate for JLR by simply communicating the product they have used and its importance to other members of the public (Axson, 2013). They also provide labor in the supply chain. They provide a reliable source of labor to the organization especially so in the service providing industry (Bailey & Clancy, 2010). JLR is likely to benefit from this kind of arrangement because the labor provided by the customers can be utilized in sales and servicing of the vehicle (Chan, Lettice & Durowoju, 2012). They are helpful in co-production where the customer also gets involved in making of the goods. Through involvement of the customers in the process of making goods, they are able to make reference to their ideal car (Shtub & Karni, 2009). This information is critical to the manufacturer because it enables them make informed decision about the supplies needed in order to make the ideal customer preferred good (Coyle & Coyle, 2009). This will be of great assistance to the production company because they will be able to come up with goods that meet the needs of the client which will in-turn increases their sales (Bailey & Clancy, 2010). They are resourceful designing the product. Since they are the end users, customers provide the much needed insight to design engineers on the product. This is done by giving ideas about the end product they would rather have and their expected experience (Bannock, 2014). This information will help in modeling and implementing the different design models in order to achieve an appealing design to the target market (Shah, 2009). Electric powered engine will give it an upper hand and the fact that the people are attracted by what they see may compel the company to create appealing designs which will increase their sales in the long run (Chan, Lettice & Durowoju, 2012). The customer will also help pin point the areas of weaknesses in the supply chain. JLR will be able to understand and correct the lapses in the supply chain which are likely to hinder the smooth running of business (Ireland, Rhoskisson & Hitt, 2008). The consumer is a source of such information which serves to ensure that the role of the customer is not hampered in any way. Difficulties in the New Supply Chain: Difficulties are bound to emerge whenever new changes are implemented. Organizations should therefore impellent strategies aimed at dealing with challenges that are likely to be encountered in the new supply chain (Lambert, 2008). Areas of difficulties may include the following: The need to maintain cost of the product despite the continuous increase in cost of product in order to cater for the improvements implemented (Ireland, Rhoskisson & Hitt, 2008). For instance, JLR having brought an improved version of vehicle that is fueled by electricity has a dilemma of either to increase or lower the price of the improved electric fueled vehicle (Axson, 2013). This comes as a result of increased cost of producing the engine with self-electricity generating capabilities. Secondly, they may encounter challenges when it comes to market growth. The supply chain can only handle a given capacity of products and not more than that (Sehgal, 2009). This means therefore that an increase in the demand for goods and services by the market may overwhelm the company’s ability to produce and supply the product on demand (Bannock, 2014). Therefore, JLR would still have trouble dealing with the growing demand of the new product because of their limited capacity to both produce and supply the product effectively (Bailey & Clancy, 2010). Outsourcing may also pose a challenge to many organizations because they have little or no control over the activities of the partner organization. This brings issues of targeted number of sales and whether these figures have been reached or not (Bannock, 2014). For example, JLR has little or no control over the number of sales that the suppliers and customers make. In other words the success of JLR is pinned to that of partners in the supply chain. Conclusion and recommendation In conclusion, Supply chain is a system of interrelated business activities in which the use of entities such as information, activities, people, organization and resources are employed to ensure the interchange of both products and services from the supplier all the way to the consumer (Akȧli, 2005). To achieve this, the organization needs to formulate strategies and make informed decisions concerning the entities to be involved in the supply chain. Management also needs to perform management functions at all stages in the supply chain (Bailey & Clancy, 2010). These functions include supervision, coordination, integration and strategic decision making. By so doing, the management will have all it needs in order to successfully move the goods and services they are dealing in from the producer through to the customer (Bannock, 2014). For successful implementation of a supply chain by any organization, there is need for critical analysis of the market. The organization should therefore consider gathering information from all relevant stakeholders and other sources which will be of help in the analysis of the market; it is from this analysis that an effective and efficient supply chain can be developed. Furthermore, there is need for the company to identify the target market and most suitable suppliers to maintain a balance (Chan, Lettice & Durowoju, 2012). This will ensure profitability of the business when then supply chain is implemented. Suitable suppliers need to meet the set criteria in order for them to qualify to join the supply chain. They need to have economic security and should therefore be able to provide their supplies without having problems of finance. They should also be reliable in their supply. Consistency should be upheld by the supply and they should endeavor to ensure timeliness of the supplies so that they do not inconvenience the flow of goods and services across the supply chain. They should provide warranty, and insurance service for the entities up the chain. This will ensure that they do not only gain trust but also protect the rest of the supply chain from the harm and losses they would otherwise get (Lambert, 2008). The suppliers should also offer competitive prices in order for them to be selected to join the supply chain. This will reduce the cost of production which may help the manufacturer address the issues of escalating market prices. Consumers also need to be actively involved in the supply chain because this will increase chances of getting a high quality product (Chan, Lettice & Durowoju, 2012). They are also important because they provide the information necessary for development of better products and services. This may eventually lead to development of products which are consumer friendly, environmental friendly and pocket friendly as well. Supply chain will always involve different entities and for success to be realized there must be good coordination of activities, effectiveness and efficiency, taking precautions and many other aspects which needs to be considered in the process of creating a supply chain (Leeman, 2010). It should be noted that the success of the supply chain is greatly dependent on this coordination and general management roles and by extension, upon the research which needs to be conducted in order to evaluate the success and sustainability of the supply chain and correct the areas of weaknesses as they are experienced. Bibliography: Top of Form AKȦLI, E. (2005). Applications of Supply Chain Management and E-Commerce Research. [New York], Springer Science+Business Media, Inc. Bottom of Form Top of Form AXSON, D. A. J. (2013). Best practices in planning and performance management radically rethinking management for a volatile world. Hoboken, N.J., Wiley. Top of Form BAILEY, D., & CLANCY, J. (2010). Blogs from the blackstuff: the case for rewriting the economy. London, Lulu. Bottom of Form Top of Form BANNOCK, G. (2014). Range rover the creators of an icon. [Place of publication not identified], Brooklands Books Ltd. Bottom of Form Top of Form CHAN, H. K., LETTICE, F., & DUROWOJU, O. A. (2012). Decision-making for supply chain integration supply chain integration. London, Springer. Top of Form COYLE, J. J., & COYLE, J. J. (2009). Supply chain management: a logistics perspective. Mason, OH, South-Western Cengage Learning. Top of Form EDMONSTON, P. (2013). Lemon-Aid New and Used Cars and Trucks 1990'2015. Dundurn. Bottom of Form Bottom of Form Bottom of Form Top of Form HEISIG, P., MERTINS, K., & VORBECK, J. (2003). Knowledge management: concepts and best practices. Berlin [u.a.], Springer. Top of Form HÜBNER, R. (2007). Strategic supply chain management in process industries an application to specially chemicals production network design. Springer E-Books. Berlin, Springer. Top of Form IRELAND, R. D., HOSKISSON, R. E., & HITT, M. A. (2008). Understanding business strategy: concepts and cases. Mason, OH., South-Western Cengage Learning. Bottom of Form Top of Form IVANOV, D., & SOKOLOV, B. V. (2010). Adaptive supply chain management. London, Springer. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Top of Form KHAN, O., & ZSIDISIN, G. A. (2011). Handbook for supply chain risk management: case studies, effective practices, and emerging trends. Ft. Lauderdale, FL, J. Ross Pub. Top of Form LAMBERT, D. M. (2008). Supply chain management: processes, partnerships, performance. Sarasota, Fla, Supply Chain Management Institute. Top of Form LEEMAN, J. (2010). Supply Chain Management: fast, flexible supply chains in manufacturing and retailing. Düsseldorf, Institute for Business Process Management. Top of Form PIRAMANAYAGAM, S. N., & CHONG, T. C. (2012). Developments in data storage: materials perspective. Hoboken, N.J., Wiley. Bottom of Form Bottom of Form Top of Form SEHGAL, V. (2009). Enterprise supply chain management integrating best-in-class processes. Hoboken, N.J., Wiley. Bottom of Form Bottom of Form Top of Form SHAH, J. (2009). Supply chain management: text and cases. Upper Saddle River, N.J., Pearson Education. Top of Form SHTUB, A., & KARNI, R. (2009). ERP the dynamics of supply chain and process management. New York, Springer. Top of Form Top of Form WU, T., & BLACKHURST, J. (2009). Managing supply chain risk and vulnerability: tools and methods for supply chain decision makers. London, Springer. Bottom of Form Bottom of Form Bottom of Form Bottom of Form Read More
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