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Performance Monitoring for Jaguar Land Rover

The parts supply process can have a huge financial and customer service impact if it breaks down. Here's how JLR measured it.

July 13th 2015, by glyn

The problem:

Jaguar Land Rover supplies its dealer network with vehicle spare and replacement parts, historically through supply chain partners, Unipart and Caterpillar/Neovia.

The supply chain comprises of a number of functions and elements. JLR challenge is to ensure that levels of service are consistent and delivered in a quality contracted fashion from their supply chain partner and meet the demands of internal customers in the dealer network.

The risks to service quality if the process breaks down are:

  • Incorrect or damaged parts
  • Delayed delivery
  • Parts return delays
  • Impact on end customer satisfaction

Failure to provide an efficient and effective level of parts supply could have the following consequences:

  • Detrimental effect on end-customer satisfaction and loyalty, particularly if vehicles cannot be repaired within a reasonable time frame
  • Financial impact on dealerships, both in the resource required to co-ordinate and administer parts procurement and impact through replacement vehicle hire costs

JLR therefore ensure through this process a means of assessing the quality of this operation by surveying all European market dealership parts managers on an annual basis.

How we could help:

The survey enables JLR to measure performance in the following ways:

  1. Individual supplier performance
  2. Co-operation and co-ordination between distribution centres
  3. Common Pan-European issues

Since 2004, the survey has driven many improvements in performance. New processes and procedures have been implemented to address key issues, such as:

  • Order referrals – encouraging cross-border assistance
  • Cataloguing – improving on-line systems for ordering and delivery control
  • Transportation – achieving an optimal balance between stock holding levels without jeopardising emergency responsiveness
  • Quality of shipments – reviewing packaging and handling procedures to minimise damage during transit

The result:

The results of this research have demonstrated high levels of coordinated quality-driven performance in many areas and supported supplier management and relationships.

The survey has underpinned strategic decision making for JLR Parts Supply and Distribution service, including:

  • Resource
  • IT
  • Staff recognition and reward programmes
  • Developing new parts distribution centres