Jaguar Land Rover Trading Division is responsible for the buying, moving and selling of parts to JLR plants in China and Brazil. The majority of parts are routed via one of three export sales centres (ESCs) in the UK or Germany, where parts are re-packed and consolidated for shipment. During the five years since the division’s creation, only two direct ship supply chains had been introduced, due to the complex process required to implement an alternative supply chain. Not to be deterred, it developed a case to provide a comparison between routing from Japan via EU to UK to China, using the ESCs, or routing parts directly from Japan to China. In January 2019, parts were re-routed from Japan directly to the Chinese plant, while the transaction was routed virtually, avoiding planned import into the EU and UK. The project required more than £100,000 investment in IT change. JLR has saved £85 per car, reduced freight lead time from 23 weeks to 23 days and created stronger stakeholder teamworking. Furthermore, direct ship will not be affected by potential trade tariff changes in the UK and EU.
Judges’ comments: "A well thought through plan with many business benefits from costs through to customer service lead times and CO2 emissions. While it appears a simple solution to achieving improving supplier chain integration, it was clearly extremely challenging to implement the required cross functional working and changes to IT. Great thinking."