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Supply Chain Management

Report on The Body Shop and Jaguar Land Rover

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The paper looks into the Supply Chain value system at The Body Shop and Jaguar Land Rover, and studies the overall design system of their supply chains, how decisions are made in the two companies and role of quality and the consumer when it comes to taking these decisions. We have identified some alternate marketing strategies for the Body Shop and some alternate distribution systems in the case of Jaguar Land Rover.

Supply Chain Management

Contents

1. Introduction:........................................................................................................................... 3

2. Supply Chain at the Body Shop and Jaguar Land Rover:...................................................... 3

2.1 The Body Shop: ................................................................................................................... 3

2.2 Jaguar Land Rover: .............................................................................................................. 4

3. Conclusions:........................................................................................................................... 7

4. Recommendations:................................................................................................................. 7

1. Introduction:

With increasing competition and globalization, companies around the world are trying to find

effective strategies to reduce costs, increase sales and maintain their profitability. While some

companies are successful in doing so, others seem to have fade away and become obsolete.

The once big power houses like General Motors have found it difficult to compete with the

emergence of innovative Japanese car manufacturers such as Toyota Motor Corp.

What needs to be done across these organizations is the employment of better and innovative

management techniques. One such option is using a Sustainable SCM.

The idea of SCM (SCM) is focused around two centre thoughts. The most important is that

essentially every product that reaches a consumer reveals a comprehensive collaboration of

various functional areas. These collaborations are collectively called as the supply chain.

2. Supply Chain at the Body Shop and Jaguar Land Rover:

2.1 The Body Shop:

The Body Shop is a premium brand of cosmetics which provides original, natural beauty

products with over 2500 stores operating in 60 different locations worldwide.

Procurement

ProductionMarketing &

Sales

DistributionUse by End Consumer

The Body shop uses ethical practices to procure its products, and reaches out to its suppliers

with its special programs and incentives. It has one of the most ethical production lines, with

high regard to society and the environment. It believes in giving back to the environment.

Body Shop uses a mix of marketing strategies, by promoting its products as herbal and

natural, it taps into the premium market for consumers willing to pay a higher price for such

products. The management of the supply chain is an imperative component in endeavours by

business to bring down its ecological effect. The Body Shop International (BSI) has procured

critical involvement around there, beginning with the dispatch of its supplier ecological star-

rating plan.

Role of Customers:

Customers play a vital role in the overall supply chain at the Body Shop as the company

essentially targets consumers who need natural products. The Body Shop even promotes its

products by identifying in with “green” or “environmental friendly”. Thus, the supply chain

at the Body Shop ensures that all the functions, from responsible procurement, to

manufacturing (with no animal testing) to giving back to the environment is done as per their

target audience. The role of the customer and adherence to quality at Body Shop is

paramount.

2.2 Jaguar Land Rover:

Jaguar and Land Rover together established the Jaguar Land Rover making the company the

biggest auto maker in the UK with premium class cars. The growth in business of this

organization is only in its developing stage. Approximately 400,000 vehicles internationally

were sold by the company at the year of 2013 and this was an enhancement from previous

year by 23 percent. From this selling, the company was able to attain a profit of

approximately 2 billion euros. This makes JLR the main exporter of automobiles in UK

attaining the market share of 80 percent. Tata Motors Ltd owns JLR and the company is

engaged in providing employment to 25000 individuals in the market of UK along with

providing support to more than 170,000 individual with the help from their processes such as

dealers, suppliers and business in the local area.

JLR furthermore has depicted its capacity through its program called international material

planning and system of logistics. The main aim of this program is to deliver the itemized

privilege with regard to quality, place and time.

The Global MP&L capacity comprises of eight divisions

i. Inbound Logistics

Logistics through inbound perspective is the accountability leading towards collaboratively

organizing the inbound pats advancement in order to focus on dissemination externally along

with business locales in the cross dock. This cross dock business locales is responsible for

dealing with the freight advancement screens, wandering off-site, supplies material being

taken care of and operations line feeding give a get-together organization to all of JLR

suppliers as far and wide as could be expected under the circumstances.

ii. Completed Vehicle Distribution

The outbound logistics capacity is in charge of the development of recently completed Jaguar

and Land Rover vehicles, to merchants and clients around the world. It arranges and screens

the development of each vehicle delivered, guaranteeing that conveyance happens in an

auspicious and effective way, without trading off elevated expectations of value.

iii. International & Power train Program Management (IPPM)

IPPM create and execute focal and plant logistics to help develop and part fare programs

from building idea through to manufacturing dispatch, powertrain projects, manufacturing

plant system and future site methods.

iv. Managing the programs of logistics (LPM)

This management program helps in facilitating the vehicle projects conveyance for each

production site creation leading towards incorporating every network of production in the

logistics for guaranteeing that a strong methodology has been under taken after empowering

the manufacturing fruitfully when occurring.

v. Engineering and Programming (Advanced packaging)

Conveying on three regions to guarantee logistics is considered in every part without bounds

item creation process. Perceiving chances to decrease squander and make the supply chains

for the future; building compartment arrangements and setting out the bundling method for

the business; and protection and accessibility of holder bundling for current vehicle lines.

vi. International Manufacturing Development

It deals with the scheduling; pressing and transportation of vehicle parts to Jaguar Land

Rover's abroad get together areas.

vii. Preproduction Prototype Materials (PPPM)

PPPM has two unique operational zones. Information Integrity oversees Perpetual Inventory

to keep up creation stock exactness and additionally times in all running and model year part

changes. Model Operations timetable, get, unit and convey all JLR's Prototype material for

both vehicle and motor projects.

viii. Vehicle Planning & Scheduling

Vehicle Planning & Scheduling is in charge of creating a Manufacturing Plan adjusted to

Sales and Purchasing to boost consumer loyalty and accessibility of vehicles to take care of

client demand and delivery expectations.

Role of Customers:

The customers of Jaguar Land Rover are high end car users. Jaguar Land Rover uses a clear

distinguishing factor to cater to their customers. The prices are higher than normal sedans or

SUVs, however, there is a great amount of emphasis put into the luxury and quality of the car

manufacturing and design. Normal fabric seats (found in general lower segment cars) are

replaced with leather upholstered seats. Increased driving efficiency tools such as Anti-lock

brakes etc are also installed. Hence, the company keeps in mind the requirements of its end

users and delivers them a car they would want to invest in. The role of the consumer as well

as the attention on quality precedes everything else at the car company and forms an integral

part of it supply chain.

3. Conclusions:

In the course of the above analysis, we have seen how The Body Shop and Jaguar Land

Rover utilize effective SCM in order to achieve organizational success. While Body Shop

uses an effective Care for the Environment procurement, production and distribution system,

Jaguar Land Rover is all about engineering quality into their processes. SCM is about

creating a system and training the right personnel to effectively reach out and fulfil all the

functional areas of management. Although the dynamics of every organization is different,

the fundamentals are essentially the same.

Following are some recommendations for both these organizations to further improve on their

SCM.

4. Recommendations:

Alternate Marketing Strategies for Body Shop UK:

Making a Strong and Identifiable Brand Name: Body Shop already has a good brand

equity in the market but it can be made even stronger. According to David Aaker, a good

brand name sells more products than any other marketing strategy. He cites the example

of Kodak who made their brand synonymous with photographs by introducing two

characters: “Brownie Boy” and “Kodak Girl”. Body Shop could consider employing a

similar strategy and introducing a character that promotes its brand. Maybe an animal

character which promotes the brand by saying that the products of Body Shop do not test

their products on him/her or any other animal. This would be in line with the company’s

philosophy.

Use Greater technology for communication with customers: Ferrel believes that in

today’s communication technology driven world, it is important to be in constant touch

with the customer. For example he says that Pizza Hut is a pioneer in the field. A person

can order food through a text message while driving back home. Body Shop should

consider employing a communications technology program, whereby it can be reached

through simple text messages or via phones to connect with customers.

Differentiating products: Walker & Mullins believe that organizations should try and

differentiate their products through strategic decision making. Body Line can do this by

implementing a better strategy for pricing their products.

Employ a Holistic Approach: Kotler advocates the need to have a holistic approach

when it comes to marketing, from “development and design to the implementation of

marketing programs.” Body Shop lacks in the implementation of its marketing strategy

which is customer based, but, a lot of stores in the UK are found to be incompetent while

servicing the customers. Body Shop should check this as soon as possible and perhaps

send its store employees for proper training.

Concentrate on Niche Products: As Porter believes, concentrating on niche strategies

or “FOCUS” is very important. Body Shop should concentrate on its niche products that

have held them in good stead over the years.

Alternate Distribution systems for Jaguar Land Rover:

We believe that Jaguar Land Rover (JLR) has an overdependence on its exports and

distribution partners. A lot of countries, for example India have barriers to import such as

high customs duty on imports (up to 100%) We recommend that Jaguar Land Rover can

follow the Toyota method of setting up its production centres globally, and forge alliances

with its suppliers so that they too can supply at a global level. Moreover, if the cars are

produced domestically, they will not be levied the high customs duty. JLR must identify the

countries with the highest potential and evaluate if it is feasible for them to invest in

manufacturing there. Developing economies should be the target market for JLR as they have

high sales potential and relatively lower cost of productions.

References:

Aaker, 2010. Building Strong Brands. s.l.:Pocket Books.

CILT (UK), 2007. Jaguar Land Rover Overview. [Online]

Available at:

https://www.ciltuk.org.uk/Membership/Organisation/Corporate/PlatinumPlus/jaguarlandrover

.aspx

[Accessed 03 January 2015].

Ferrel, O., 2010. Marketing Strategy. 5th ed. s.l.:Cengage Learning.

Handfield, R., 2011. What is SCM?. [Online]

Available at: http://scm.ncsu.edu/scm-articles/article/what-is-supply-chain-management

Roberts et al, 2010. KOTLER ON STRATEGIC MARKETING. 20 June.

The Body Shop, 2014. About Us. [Online]

Available at: http://www.thebodyshop.co.uk/services/aboutus_company.aspx

[Accessed 03 January 2015].

Walker & Mullins, 2013. Marketing Strategy: A Decision-Focused Approach. 8th ed.

s.l.:McGraw-Hill/Irwin.