Introduction
Supply chain operations are complex and include a series of interrelated processes in the automobile field. The specific functions include manufacturing and logistics, which entail the supply, transportation, and packaging of products. Car manufacturing consists of the design of the vehicles, which emphasizes the quality of the car models and the assembly techniques that improve their competitive value. Also, the volume of cars produced is an aspect of manufacturing since it determines the assembly process to be adopted. Vehicles can be assembled locally or transported in parts to be made in a foreign region.
Manufacturing and logistics challenge Jaguar Land Rover’s supply chain operations. The 1968 merger of the automobile company has led to remarkable growth in the company’s areas of operations (Matopoulos, 2021). The demand for the British-based company’s vehicle products has increased exponentially due to its effective supply chain operations. Admittedly, the growth and expansions of the UK-based Jaguar Land Rover company, including its design, assembly, and logistics, have significantly impacted its competitive ability.
Car Design and Logistics Operations
Logistics, primarily referred to as the shipment of a product, solely depends on the physical appearance of the product being transported. Whether a vehicle is completely disassembled or fully disassembled before shipment depends on the presence or absence of an internal frame. Automobiles with an internal frame, such as the Land Rover Defender, are quickly shipped under complete local assembly. On the other hand, vehicles lacking an internal frame lack the attachment points for the peripheral parts, such as the bonnet and doors. They, therefore, are easily transported as a whole vehicle.
Regarding the mode of shipment, the ease of transporting automobiles depends on both their model and frame. For example, the Land Rover Defender has an internal frame, primarily a truck, to which other parts of the vehicle’s chassis can be attached safely for transport (Matopoulos, 2021). When shipments of the Land Rover Defender are carried out from the manufacturing regions to the point of demand, the parts are transported separately and assembled later in the demand region.
Packaging is a critical element in a project’s design phase, affecting logistics and ease of shipment. Vehicles that are packaged effectively have a high density, and the value of inbound parts is higher than that of those that are not effectively packaged (Matopoulos, 2021). The shipment cost of a well-packaged Land Rover is 2-4% more than the disassembled one (Matopoulos, 2021). With adequate packaging, the quality of the automobile parts stays intact; hence, the transport cost is far lower than the profits incurred by the sale of the vehicles.
Advantages and Challenges of Local Assembly Operations
Local assembly operations are the practice of shipping the automobile from the original equipment manufacturer, as separate parts, to a different region for assembly. Local assembly operations are characterized as both complete local assembly and semi-local assembly. The local assembly operation has unique advantages and disadvantages as compared to transporting the vehicle as a whole. Regarding the advantages, the assembly in different regions leads to customized products that are likely acceptable. For instance, the Land Rover Defender is a product of local assembly operations, which has produced a solid all-terrain vehicle convenient for countries such as Kenya and Pakistan (Matopoulos, 2021).
On the other hand, the semi-local assembly of Jaguar production has led to the formation of a luxurious Jaguar XF model in India. Local assembly operations are also less costly as they require prior assembly before transporting assembled vehicles. The separate parts are less costly to transport due to the vehicle’s density and quality. Fully assembled vehicles have adequate packaging, contrary to disassembled ones.
Effective packaging results in higher metal quality within automobiles, which increases the shipment costs from the original equipment station to the point of demand. The growth of Jaguar Land Rover on the global stage is attributed to its partnerships with local assembly operations such as Japanese Tata Motors, making local assembly more profitable for the automobile company (Matopoulos, 2021).
Concerning the disadvantages, local assembly operations increase the complexity of supply chain operations since they necessitate the collection of automobile parts. The collection prices are prone to losses since the disassembled parts can be easily stolen before assembly. Also, the original equipment manufacturer (OEM) faces stringent import and customer regulations, making prior assembly before shipment more convenient.
Issues with the Ongoing Increase in Export Volumes
The increase in both the inventory in transit and the volume of Jaguar Land Rover products has impacted the company’s success. Currently, the automobile company exports 80% of its products to other countries, increasing revenues exponentially(Matopoulos, 2021). However, high exports lead to a rise in logistics issues, making the effective shipment of goods a significant concern.
Sea transport is used for outbound distribution, which transports Jaguar Land Rover products from the United Kingdom to the rest of the world. Sea transport is usually slow, and voyages take up to 45 days to reach the desired destination (Matopoulos, 2021). The long time taken to deliver the vehicles has resulted in high logistics costs and the risk of slowing down vehicle demand.
The global trends in demand for automobiles have declined due to freight issues and the unfavorable mode of shipment. Using rail freight as a primary mode of transporting the required Jaguar Land Rover products makes delivery relatively slower. Concerning truck freight, the most common inbound mode of transport, incomplete truckloads have impacted the quality of the delivered products.
Weight limitations are a critical logistics issue that affects Jaguar Land Rover shipment services (Matopoulos, 2021). The trucks carrying the automobile parts are subjected to weight restrictions, which bar them from exceeding a specific weight. These restrictions tamper with the quantity of the transported products, therefore reducing the export volumes at Jaguar Land Rover.
Advantages and Disadvantages of Multimodal Transport
Multimodal transport uses a single logistics service provider to ferry similar goods using different modes of transport, such as rail and road. The adoption of multimodal transport by Jaguar Land Rover Company poses particular benefits and limitations that make it difficult for outbound freight, which is the shipments of vehicles from the United Kingdom and other nations (Matopoulos, 2021). Having a single logistics services provider improves the ability to reach many clients quickly.
A multimodal transport system at Jaguar Land Rover ensures that the shipment operations are spread over a large area, making product delivery easy and convenient. Using diversified modes of transport from one provider ensures trust and promotes monitoring of the efficiency of outbound freight delivery. However, multimodal transport is not easily applicable at Jaguar Land Rover due to the several logistics service providers hired to carry out the shipment activities. Diverse logistics are used due to the apparent disadvantages of multimodal transport. Most outbound regions need various modes of transport, such as railway stations.
Multimodal transporters work effectively where there are roads, rail stations, and ports. These characteristics are absent in many outbound freight services. The limitations of the infrastructure make the mode of transport inefficient. In the multimodal transport system, this is paramount.
Choosing a specific logistics service provider only guarantees quality and timely shipment of automobiles if the weather conditions become favorable for a particular transport service. Compared to vehicles, Land Rover cars are bigger (Matopoulos, 2021). The relatively bigger size makes it challenging to carry in the same-size containers, which are practically used in the multimodal system. Also, government policies change from one country to another, complicating the use of a single logistics service as required in multimodal systems.
Conclusion
In conclusion, due to its fast growth and expansion, Jaguar Land Rover experiences a complex supply chain operation. The fast pace of automobile manufacturing has resulted in a high inventory in transit, complicating the modes of transport to be used in the shipment of the products to consumers. Jaguar Land Rover needs to streamline its manufacturing, assembly, and logistics processes to improve its competitive ability and achieve an efficient global supply chain operation. From the design phase of the Jaguar Land Rover automobiles to the final sale to the customers, an effective supply chain operation is critical to reducing the logistics issues currently affecting the growth of the automobile company.
Reference
Matopoulos, A. (2021). Global Supply Chain: From Design to Execution. In J. Mangan, C. Lalwani, A. Calatayud (Eds.), Global Logistics and Supply Chain Management (pp. 77–88). Wiley. Web.