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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.
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:
- Individual supplier performance
- Co-operation and co-ordination between distribution centres
- 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 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:
- Staff recognition and reward programmes
- Developing new parts distribution centres