1. Supplier Management
Briefing PACK

2. Supplier management work stream
The Supplier Management work stream has three key components:
Segmentation: Each supplier manufacturing site has been given a segmentation ranking based on its strategic importance to JLR
Scorecard: The Global Supplier Scorecard, measures suppliers’ quality and performance, utilising quantitative information as well as buyer driven qualitative information
Engagement: Using the information provided by the segmentation and scorecard, JLR will establish a cadence of reviews to discuss the results and identify areas to further develop relationships with suppliers

3. SUPPLIER MANAGEMENT WORK STREAM PROBLEM AND PROPOSED SOLUTION
PROCESS
PROBLEM
SOLUTION
SCORECARD
JLR does not have a common and cross functional view of supplier performance beyond JLRQ
JLR does not have visibility of the cross functional improvement activity being carried out at supplier sites.
Scorecard capturing 21 different performance metrics with input from cross functional teams deployed and produced monthly for top 150 JLR PP/ AMSO suppliers
A central repository and reporting of performance data and process compliance across the top 150 suppliers. Central support to line to effectively manage supplier relationship
SEGMENTATION
JLR does not have a numerate model for differentiating suppliers in terms of impact and strategic importance
Segmentation output is not aggregated to reflect supplier parent interactions across COC including leverage opportunities
Supplier Management team will run and maintain a model of all PP supplier sites annually allowing for supplier positioning, and enhancing strategic discussion at a site, parent and regional level
ENGAGEMENT
JLR does not have consistent structured cross functional , reviews at a plant, divisional and parent level with Suppliers
JLR Does not have a consolidated overall cross functional improvement plan for suppliers focused around a standard set of metrics.
Central team will support the bespoke design and implementation of structured and cross functional supplier performance reviews at a plant, divisional and parent level. Utilising outputs from the scorecard at the top 25 suppliers.
A bespoke supplier improvement plan will be implemented to improve areas of performance highlighted by the scorecard results.

4. SUPPLIER MANAGEMENT WORK STREAM SUPPLIER SCOPE PP/AMSO
The central support resource will offer the following services, depending on Supplier group:
Scorecard
Central storage and
analysis of results
Community of interest
Facilitated/documented engagement design
Central support ongoing mgmt./briefings
through named central person
Central storage and analysis of results
JLRQ only
Group 1 Suppliers
(top 25)
‘Heavy Central Support’
55% spend coverage
80 %spend coverage
Group 2 Suppliers
( )
‘Light Central Support’
Group 3 Suppliers
(150 onwards)
Priority set by purchasing
No Central Support

5. Roles/Responsibilities
SUPPLIER MANAGEMENT WORK STREAM
Roles/Responsibilities
SUPPLIER MANAGEMENT PROCESS – ROLES AND RESPONSIBILITIES
SUPPLIER MANAGEMENT ‘OFFICE’
Create scorecards Maintain master data, analytics, trending etc.
Provide support to champion (e.g. relating to meeting attendance, population of action plans)
Report on process adherence Facilitate and maintain segmentation and engagement models
DIRECTORS
Sign off engagement approach for each supplier
Support the supplier champion (meeting attendance, representation etc.)
Co-ordinate cross functional engagement for supplier activities
CHAMPIONS
Lead the actions of the engagement process
Co-ordinate internal meetings, ensure cadence of meetings is being maintained
Ensure scorecards are issued to supplier
Ensure supplier is producing credible improvement plans

6. SUPPLIER MANAGEMENT WORK STREAM PROCESSES MAPPED - Highlighting Line and Office Responsibility
SCORECARD
SEGMENTATION
ENGAGEMENT
PROCESS
SMO
PRINCIPALS
Lower cost central resource to produce scorecards / segmentation output / administrative activity around reporting / meetings and ongoing support for line
Consistency in approach and output for strategic suppliers allowing trending and comparison
Process health and Supplier performance reported on monthly at senior levels
Line resource freed to action improvement actions / build relationship
Produce Scorecards / pack
Add additional scores
Check the outputs
Issue to supplier
Generate action plan
Meet to review and sign off action plan
Execute actions
Review/ map out Wiring Diagram for supplier
Review/ validate wiring diagram
Review/ design engagement approach
Organise meetings
Facilitate meetings
Create action plan
Review completion of actions
Report on actions completed
Score/check the tool scores for the site
Update master data
Produce reports as required
RESPONSIBLE PARTY
Supplier Management Office
Line
Supplier

7. Supplier management work stream SCORECARD
Excel based tool
Encompassing over 20 measures
Suppliers will be measured on areas such as: Quality, Risk, Aftermarket Performance, Cost and Technology and Innovation.
Key areas:
Summary: Highlights the overall GSS and JLRQ score. Indicates if the supplier has achieved a pass score
JLRQ Scores: Highlights the specific score for each metric and how it is calculated.
GSS Scores: Highlights the specific score for each metric and how it is calculated.
Heat map: Highlights supplier site specific performance issue as well as parent level structural issues

8. Supplier management work stream SEGMENTATION
Supplier manufacturing sites will be given a segmentation ranking which can be rolled up into a single parent ranking
Cross functional teams will be engaged to determine the segmentation ranking
Segmentation will be plotted on a matrix to highlight strategic importance
Segmentation ranking based on 9 factors:
Supplier Competition
Willingness to invest
Commodity Category
Contractual commitment
Difficulty to move
JLR future sourcing plan for supplier
Level of JLR dependency
on technology
Supplier's footprint

9. Supplier management work stream Engagement
A structured session to review the segmentation and scorecard results
Consolidation of the fragmented discussions between suppliers and JLR
A forum to discuss any ongoing issues or opportunities for innovation.
Establish and maintain a bespoke improvement plan