Jaguar Land Rover
What is there?
History of Jaguar Land Rover
• Ford purchased Jaguar in 1989 and Land Rover
from BMW in 2000.
• In 2008, TATA Motors purchased both Jaguar
and Land Rover from Ford Motors for $2.3
billion coupling the two brands.
• TATA Motors looks to reinvent JLR, spending
$5.3 billion on R&D for new models and
electric vehicles.
• Jaguar launches the I-Pace in 2019, it’s first
electric vehicle
Performance of the company
• In 2019, TATA Motors recorded a $4
billion loss due to an impairment charge
as well as a weak Chinese market.
• Market performance: North America
(40.2%), UK (23.1%), Europe (29.7%),
China (27.4%), and overseas (20.8%). It
is going to more focus on the US market.
Current production capabilities
• JLR currently has vehicle manufacturing
plants and assembly plants in the UK,
China, Brazil, India, Austria and
Slovakia.
• Production by country UK is the highest
followed by Austria, China, Slovakia, and
Brazil of a total 562,349 vehicles in
2019.

Relationships with suppliers
 ‘open book’ approach
- Openness and ability to collaborate
with other OEMs to share logistics
capacity and increase speed and
reduce costs (FTL utilization increased
to 91%)
- Strong supplier relationships drive a
high quality and symbiotic ‘win/win’
culture – Tier 1 suppliers have good
visibility and involvement in new
developments and designs
SPL optimization
- Also enabled back haul logistic sharing
with Ford (Ford imports more into UK,
JLR exports more  -win/win)
- LPL (DHL) fully manages inbound to
the point of line feeding (3-fold
increase in production capacity)
What works? 
SCM performance
PPR process with SEKO  Branding
- QRT servicing and replacements
- ‘British’ brand is strong and core to success
OTD (Order to Delivery)   - Quality
- Visibility for dealers - Reliability 
- Reduction of OTD time also using statistical
analysis to optimize and predict problems
before it occur
- Ability to delineate stock and sold cars to
reduce OTD
- Constantly reviewing and re tendering for
logistics across the network, flexibility to have
different solutions in different regions e.g. LPL
model not used in Russia as more short haul
options are more suitable or Australia direct
sourcing more appropriate Sustainability
- Have achieved their GHG emissions reduction
plan across their supply chain in the UK
What doesn’t work?
• Net cashflow still negative, despite improvements – currently JLR take all risk and costs of holding inventory (all markets ex. US are
build to order)
• High levels of inventories, with an average of 3.5 billion GBP per year
• Inventory turnover in 2019 is 4.25 (considering COGS) – 5.67 average in the car manufacturing industry
• Build to order means inconsistent and often long wait times for the end customer to take delivery on their new car (OTD)
• Mix of SLA and CLA across the range of models – variations of how, when and where different models are assembled – high reliance
on ro-ro out of the UK
• No assembly or production muscle in the Americas – exposure to both Brexit and China/US trade tensions (Bulk of production in UK
over 70% currently)
• High dependency on UK production with high labor costs, and stringent regulations
• Incredibly complex supply chain, makes it difficult to optimize – 2nd tier suppliers don’t share the same visibility as 1st tier and operate
on a separate demand schedule
• Highly interdependent LPL relationships leave JLR open to the risks of the LPL e.g. when DHL has industrial action in the UK, this
directly threatened JLR’s supply
• In China, rocky relationships with Chery’s network of dealers + recurrent quality problems are hindering the overall level of customer
satisfaction. Not matching the quality in the UK
• Limited portfolio and a need to release or modernize cars’ models (like the new Defender) (design to supply)
SWOT Analysis - NATHAN
Strengths Weaknesses Opportunities Threats

Strong and open Inventory holding Move to CLA US/China trade war
LPL relationships and turnover
Move to MLA Brexit + tariffs
Strong ‘British Mix of SLA and CLA
quality brand across models Better inventory Rising Chinese and
management to UK labour costs
GHG reduction Little flexibility or free up cash
plans and execution synergy across High dependence
across supply chain different modules Build assembly on LPL
or platforms muscle in the
Increasing Americas to serve Bottlenecks in
production capacity Speed to the growing US supply chain
customer/order to market
delivery
 What if
What has to be done well? Sarah
Brand - Maintain strong ‘British brand and
associated quality
Speed to customer – reduce the Order to Delivery
times (OTD) and reduce the time customer’s wait
for their new car
Responsiveness – to demand, capacity, crises and
specific market demands, without adding cost
Visibility – throughout the entire supply chain
Partnerships – strong, open, symbiotic
relationships with LPLs, suppliers and dealer
network
Design foresight – designing for flexibility about
where and how models are assembled and shipped
Brainstorm
Offshore assembly to support US Market: Maintain design and component production in Britain to hold British quality brand, but get assembly
muscle closer to the American market – suggest offshoring or outsourcing to Mexico to take advantage of their skill, labour and site costs and
cheap/fast/direct access to the US. Creates more of a network than a chain, where each market can be serviced via the path of least resistance i.e.
lowest labour, freight, tariffs, security, regional capacity etc
Design for Manufacture: Use DFM to continue to move as many of the name plates as possible to CLA across all assembly plants in the world. Aiming
to maintain the quality British brand, but find efficiency and cost savings on both the moving of the components (parts can go in containers, complete
cars cannot), allowing risk to be split across more than one assembly plant (i.e. re direct component inventory based on regional demand) and utilizing
lower cost labour and plants to assemble as many cars as possible. Ability to flex labour force up and down with demand is much greater with local
labour laws.
Use AI connected cars: AI connected cars and data processing – gathering user data to inform improvements in regional specific demands. This would
allow smarter demand forecasting, shorter OTD and more customization options for different customer demands in different markets.
Move high volume nameplates from build to order: For higher unit demand nameplates, move from build to order model to demand
forecasting/demand pull model. Enabled by CLA, component part demand can move to pull for each region’s assembly, this is driven by dealer purchase
orders + sales demand. JLR already hold the risk of the inventory at all stages, this would mean the inventory held would be a buffer, while the dealer
shares the risk and costs of holding inventory + end customer does not have to wait to take car delivery. (closer to the model VW, Ford use). Also opens
the door for volume driving levers such as dealer volume rebates in win/win situations.
Low volume nameplates selected for build to order: For lower unit demand ‘premium’ nameplates continue to optimize OTD performance and
visibility/communication for dealer and end customer. Leverage the seperateion and prioritization of stock and sold cars to reduce the OTD.
 What Wows
• Chosen solution
Move to Modular and Kit strategy –
• Design for Manufacture (DFM) to enable future nameplates to
Complete Local Assembly (CLA) capable
• Modular Longitudinal Architecture (MLA) platform development
• Build flexibility
• Enables standardization, whilst still allowing visible customization
• Realise cost savings and efficiencies by having less
component/module part options whilst still maintaining
nameplates
• Support sustainability and cost savings in supply chain by
maximizing logistics efficiencies – associated reduced emissions
risk to business
• Enabler of the transition to hybrid and fully electric nameplates
and the expansion and modernization of the nameplate portfolio
Service growing US Market -
• Setup assembly operations in Mexico to be closer to the
US Market
• Take advantage of the low labour costs to assemble close
to growing market
• Already well established skill base for auto assembly, as
well as industry training infrastructure locally
• Take advantage of existing direct, low cost logistics
corridors
• Mitigation of both Brexit and China/US trade war tariff
risks
• Additional spill over capacity for other markets can be
quickly scaled up and down with local labour laws
• Diversified network of supply chain options (reduce risk).
Should one corridor be affected, other corridors would
be able to supply the required markets.
• Realise cost savings of CLA/MLA programme fully for
fastest growing market
Increase Inventory Turn -
• Move high volume nameplates from build to order for the customer, to
build to order for dealer partners
• Low volume ‘premium’ nameplates to stay as build to order, but
delineation of stock and sold inventory in the supply chain allows
prioritization and shortened OTD for customers
• Dealer partners to take ownership of complete stock – share the
ownership and risk of inventory
• Move component part demand to pull for each region’s assembly,
this is driven by dealer purchase orders + sales demand.
• Increase demand forecasting and visibility for all partners, suppliers
and dealers, full visibility for all parties up and down the supply chain.
• Increased visibility throughout supply chain will enable higher logistics
utilization and cost savings as all parts of supply chain have better
visibility of demand forecasts
• Allow for flexibility and coverage of component and complete
inventory, without increasing on hand cost of inventory
• Enabled by CLA/MLA programme
• Opens the door for volume driving levers such as dealer volume
rebates
What Wows – Proposed Solution
Service growing US Market

• Setup assembly operations in Mexico to be closer to the US Market

• Take advantage of the low labour costs to assemble close to growing market
• Already well-established skill base for auto assembly, as well as industry training infrastructure locally
• Take advantage of existing direct, low cost logistics corridors
• Mitigation of both Brexit and China/US trade war tariff risks
• Additional spill over capacity for other markets can be quickly scaled up and down with local labour
laws
• Diversified network of supply chain options (reduce risk). Should one corridor be affected, other
corridors would be able to supply the required markets.
• Realise cost savings of CLA/MLA programme fully for fastest growing market
Flowchart

Start Brazil
Manufacturing &
Assembly

China

Existing facility
Manufacturing & Request fulfilment average
Order placed with Assembly time
US dealership
12 weeks including 8.8 weeks of
UK manufacturing and assembling,
Manufacturing & and 3.2 weeks of shipping to
Assembly California
Dealership place
Facility
order with JLR
Austria Car lot delivered
End
Manufacturing & to dealerships
Assembly

Slovakia
Manufacturing &
Assembly
Request fulfilment average
time
New facility Mexico
Assembly & VPC 4-5 days including 2-3 days
assembly and 1-2 days of shipping
to California
Network chart

3rd tier suppliers:

• 1st Tier Customers

Raw material providers (Aluminium, Steel,
Leather, Carbon Fibre, Solid Wood etc.)
• Downstream Transport & Logistics Partner (DHL, Seko
• Foundries (Engine blocs, Alloy rims, Chassis and
etc.)
body sheet metals etc.)
• Dealerships & Showrooms
• Scrap Metal suppliers
• Rental Operators

2nd Tier Suppliers:

• Parts Manufacturers (Hella, Bosch, Bose +

Harmann Kardon, Garrett etc.)
• Parts Assemblers (Engines, Syncro Gearboxes,
Drivetrain etc.)
• Packaging Suppliers 2nd Tier Customers:

• Customers (Individual & Corporate)

• Governments
1st Tier Suppliers:

• Upstream Transport & Logistics Partner (DHL,

Seko etc.)
• Strategic Sourcing Departments
• Technology Partners (AI, CRM, SCM, SPEED
etc.)
• 3rd party Marketing Agencies
• Design Partners
IPOOI
Input: Process: Output: Outcome: Impact:

• Capital Resources • Implement Efficient • Optimization of • Increased production • Increased market

• Raw Materials & Supply Chain supply chain capabilities for US share in the US
Finished Channels using processes market market.
Components digital technologies • Reduced inventory • Quicker time to • Quicker inventory
• Vehicle assembly • Transfer inventory holding for JLR delivery turnover and costs
plant in Mexico risk to Dealerships • CLA • CLA reduction
(nearshoring) to optimize OTD in • Standardization of • Expansion and • CLA
• Savoir-faire from the US market. MLA chassis across modernization of • Increased resistance
Logistics & • Enable CLA and vehicle classes portfolio of vehicles to global market
Transport Providers MLA chassis • Increased with MLA chassis fluctuations through
• Technological & program adaptability from • Less wastage of enhanced supply
Design capabilities • Increase LEAN and LEAN and AGILE human and capital chain capabilities
• People with the AGILE • Better sales forecasts resources across the • Amplified brand
right skills and implementation to enhance supply chain awareness and
capabilities • Optimizing demand production levels • Reduced exposure to positioning in the
• Prepare Efficient from various inventory risks luxury segment
Supply Chain distribution • Sustainable supply
Channels channels chain practices and
• Manage upstream compliance with
and downstream international
What Works
• Implementation
Measurements
Bibliography
• Secrets of a success story at JLR, By Christopher Ludwig, Chris Ludwig
02 July 2012
https://www.automotivelogistics.media/secrets-of-a-success-story-at-
jlr/7816.article
• February 2020, Jaguar Land Rover Investor Presentation
• https://www.investing.com/equities/volkswagen-vz-ratios
• https://fourtitude.com/news/publish/Features/article_7484.shtml
Copies of previous versions
of slides
Can be deleted once we’re happy with the presso body
What is RAYOMAND
• What is there?
Design, testing and production facilities centered in the UK, with a production JV in China and further design and testing capability in the US and Germany.
Assembly plants in South-America, Africa, Asia (incl sub continent) and Europe.

Market performance: North America (40.2%), UK (23.1%), Europe (29.7%), China (27.4%), and overseas (20.8%). It is going to more focus on the US market.

l   Design and engineering:

·         Appearance that offering more new models to be competitive everywhere

·         Technology that collaboration with global partners, leverage skill, efficiency and technology
·         Regulation that reduce emission, develop EVs

l   Production (Manufacturing):

·         New UK Engine Manufacturing Centre in 2014

·         The fist overseas manufacturing facility in China in 2014
·         Manufacturing facility and Education Business Partnership Centre in the state of Rio de Janeiro, Brazil in 2016

l   Inventory

·         Chinese economy has been slowing

·         China and US trade tension increased that weaker demand and the stock market down
·         Reduce inventory in-market and explore ways to improve the experiences of the Chinese customers
What works good? HEIARII
• Innovation and the improvement of technology is necessary for the development of the industry (brainstorm)
• Inventory reduction can mitigate the burden of the operational cost (recommendation)
• JLR’s ‘British’ brand is strong and core to success – design, development and component production in Britain part of brand
• Strong supplier relationships drive a high quality and symbiotic ‘win/win’ culture – Tier 1 suppliers have good visibility and
involvement in new developments and designs
• Strong LPL relationships – ‘open book’ approach with their key inbound partner DHL and Priority Freight for outbound
• LPL fully manages inbound to the point of line feeding – has allowed for a 3-fold increase in production capacity
• OTD (Order to Delivery) systems to create great visibility for dealers i.e. where in the order/pipeline/distribution is the car – allows
reduction of OTD time also (using statistical analysis to optimize and predict problems before the occur)
• Openness and ability to collaborate with other OEMs to share logistics capacity and increase speed and reduce costs (FTL utilization
increased to 91%). Also enabled back haul logistic sharing with Ford (Ford imports more into UK, JLR exports more  -win/win)
• Priority Parts Returns process with SEKO (logistics company) - quick response time to the customers' requirements (servicing and
replacements)
• Ability to delineate stock and sold cars and prioritise sold cars to reduce OTD (time) for customers 
• Constantly reviewing and re tendering for logistics across the network, flexibility to have different solutions in different regions e.g.
LPL model not used in Russia as more short haul options are more suitable or Australia direct sourcing more appropriate
• Have achieved their GHG emissions reduction plan across their supply chain in the UK
What doesn’t work? NATHAN
• The model designs of Jaguar and Land Rover have certain images in the customer’s minds, more classic more choices (design is still
"classic", lack of innovation) - OK merge with other points related to supply chain (more explicit)
• Three main Manufacturing facilities would be limited the development of the marketing, especially US occupied 40% of the total
retails that needs more supply chain
• Logistic has to re-manage in terms for the relationship between China and US, which it is better shorten distance or avoid high tariff
(Trade War – potentially higher tariffs in the coming years)
• Cashflows still negative, despite improvements – currently JLR take all risk and costs of holding inventory (all markets ex. US are build
to order)
• Build to order means inconsistent and often long wait times for the end customer to take delivery on their new car (OTD)
• Mix of SLA and CLA across the range of models – variations of how, when and where different models are assembled – high reliance
on ro-ro out of the UK
• No assembly or production muscle in the Americas – exposure to both Brexit and China/US trade tensions (Bulk of production in UK
over 70% currently)
• Incredibly complex supply chain, makes it difficult to optimise – 2 nd tier suppliers don’t share the same visibility as 1 st tier and operate
on a separate demand schedule
• Highly interdependent LPL relationships leave JLR open to the risks of the LPL e.g. when DHL has industrial action in the UK, this
directly threatened JLR’s supply
• Labor costs, and stringent regulations in the UK
What doesn’t work? NATHAN
• In China, rocky relationships with the Chery’s network of dealers
• Also, recurrent quality problems are hindering the overall level of
customer satisfaction. Not matching the quality in the UK
• Limited portfolio and a need to release or modernize cars’ models
(alike the new Defender) (design to supply)
• High levels of inventories, with an average of 3.5 billion GBP per year
• Inventory turnover in 2019 is 4.25 (considering COGS) – 5.67 average
in the car manufacturing industry
https://www.investing.com/equities/volkswagen-vz-ratios
What if - NATHAN
Brainstorm
l   Targeting marketing:

·         The UK manufacturing serve European markets

·         China manufacturing serve Asian markets
·         Brazil manufacturing serve North and South American markets
, which would reduce the logistic fees and trade tariff?

l   As TATA motor is an Indian giant enterprise (India has been a big market for JLR)

·         Should develop manufacturing and base for JLR in India?

·         Should Indian government provide better condition and slack regulation for JLR developing in the country and export to overseas?
, India also a big market that should encourage JLR develops in the country

l   Oceania also a big market, such as Australia

l   Competitive material cost

l   Safety and security of logistic is a significantly concern

What if - NATHAN
Brainstorm
• Maintain design and component production in Britain to hold British quality brand, but get assembly muscle closer to the American market – suggest
offshoring or outsourcing to Mexico to take advantage of their skill, labour and site costs and cheap/fast/direct access to the US. Creates more of a network
than a chain, where each market can be serviced via the path of least resistance i.e. lowest labour, freight, tariffs, security, regional capacity etc
• Use DFM to continue to move as many of the name plates as possible to CLA across all assembly plants in the world. Aiming to maintain the quality British
brand, but find efficiency and cost savings on both the moving of the components (parts can go in containers, complete cars cannot), allowing risk to be split
across more than one assembly plant (i.e. re direct component inventory based on regional demand) and utilizing lower cost labour and plants to assemble as
many cars as possible. Ability to flex labour force up and down with demand is much greater with local labour laws.
• For higher unit demand nameplates, move from build to order model to demand forecasting/demand pull model. Enabled by CLA, component part demand
can move to pull for each region’s assembly, this is driven by dealer purchase order + sales demand. JLR already hold the risk of the inventory at all stages,
this would mean the inventory held would be a buffer, while the dealer shares the risk and costs of holding inventory + end customer does not have to wait to
take car delivery. (closer to the model VW, Ford use). Also opens the door for volume driving levers such as dealer volume rebates in win/win situations.
• For lower unit demnd ‘premium’ nameplates continue to optimize OTD performance and visibility/communication for dealer and end customer. Leverage the
seperateion and prioritization of stock and sold cars to reduce the OTD.
• Demand forecasting and dealer PO model allows upstream efficiency – move to consolidation of pre production materials and reduce
What if - NATHAN
Brainstorm
Takeover by PSA could yield substantial benefits for Jaguar Land Rover

- Cover for JLR’s overall GHG emissions, especially considering that its actual derogation in Europe comes to an end in 2021, which equivales to a risk of hefty
fines;
- Could provide synergies as the PSA’s EMP could provide levers of optimization of the supply chain and accelerate the expansion and the modernization of the
portfolio of vehicles;
- In China, JLR could leverage the PSA’s well-established network of dealers to consolidate its presence in the market and improve the overall quality of
production by relying on the French manufacturer’s production capacities and capabilities.

MLA platform development and new generation of Ingenium Diesel Engines

- Comfort the implementation of lean and agile principles in the supply chain;
- Accelerate the expansion and the modernization of the portfolio of vehicles;
- Reduce the exposure to the risk pertaining to the overall GHG emissions of the organization;
- Accelerate the transition to the hybrid and full-electrical vehicles.

AI connected cars and data processing

- Ai connected cars for optimizing the agility of the supply chain according to each market’s specificities.
- Gather user’s data to inform improvements in design, specific to models, customers and markets
- Customisation of different parts for different markets
What do we have to do well? SARAH
• Add in points here similar to other presentation.
Potential solutions - NATHAN
• MLA
• Design for Manufacture (DFM) – will need to continue to transition more models and future models to be
able to be CLA and allow flexibility as to where the components are sent to be assembled
• PSA
• Being closer to the US market (nearshore/offshore Brazil/Mexico)
• Diversified network of supply chain options (reduce risk). Should one corridor be affected, other corridors
would be able to supply the required markets.
• Reduce Inventory & OTD
• Demand forecasting and visibility for all partners, suppliers and dealers, full visibility for all parties up and
down the SC – allow for flexibility and coverage of component and complete inventory, without increasing on
hand cost of inventory
• Constant review of supply chain providers, ensuring speed, quality and cost. Working with LPLs to ensure
continued improvement of integration of supply chain – end to end visibility and management of the speed,
cost and quality e.g. component part inventory flow redirected based on real time demand reforecasting