Suppliers selection and supplier base Luxury brand market Jaguar Land Rover named Responsible Business of the Year by Business in the Community(BITC) Amongst UK's largest exporters by value (£8.2bn in 2011) generates in the region of 85% of its revenue from exports. 1. Porsche 2.Mercedes Benz 3.Audi 4. Aston Martin 5.Bentley

 In 2008,16 different suppliers across three factories to undertake parts rework and containment, resulting in no clear quality definition  65% parts reject rate for certain suppliers  and some finished vehicles were being put into ‘containment’ due to faulty components.  delayed customer shipments, production line stoppages that cost £2,000 /minute and the risk that faulty parts could make their way into completed vehicles  differing quality regimes and an inability to share data across the company. Problem solved only after 3 years after appointment of a new quality director with savings of more than £1.25billion by reducing to supplier

Steele and Court (1996 p. 69) Attractiven ess of account Relative value of business or account C Nurture client Expand business Seek new opportunities D Cosset client Defend rigorously High service & response A Give low attention Low interest Lose without pain B Drive premium price Seek short-term advantage Risk losing customer Development Core Nuisance Exploitable Low High Supply risk Leverage items Alternative sources of supply available Substitution possible Bottleneck items Monopolistic market Large entry barriers Routine items Large product variety High logistics complexity Labour intensive Strategic items Critical for product’s cost price Dependence on supplier Competitive bidding System contracting + E-commerce solutions Performance based partnership Secure supply + search for alternatives Buyer strength Increasing supplier availability

 Supplier Selection Criteria  Moncza and Trent’’ Supply-base optimisation is the process of determining the number and most appropriate suppliers a buying firm….’’  Steele and Court

 7 steps supplier selection model  Quality systems model implementation to improve  Kaizen Continuous benchmarking and improvement Integrate suppliers into operations Negotiate and select competitive supplier(s) RFP / ITT or Direct Action Plan Generate supplier portfolio Develop procurement strategies Profile outsourcing requirement

 DHL workers at Jaguar Land Rover walk out over pay in SEPT 2013  4 Midlands sites and two at Halewood, Merseyside, have been affected  JLR said it was "disappointed that DHL Unite members have decided to take industrial action".

 Strength  1. High product Quality, rich culture identity and strong global brand value 2. Popular Image of luxury brand

 Weakness  1. Lack a variety product range as compared to competitors  2. Despite having high performance cars, car design is criticized

 Opportunity 1. Emerging economies like India, China, Russia apart from USA and Europe 2. Hybrid models of luxury cars is an untapped market(XJ_e)

 Threat  1. Strong competition from international automobile brands 2. Dependence on government policies and rising fuel prices

 Apply Academic models discussed previously  Reconsider current sourcing strategy and maybe look for alternative suppliers