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"Supply Chain Management"
Jaguar milking global supply chain transformation
Jaguar Land Rover is well on the way to reaching its target of eliminating 90 million road miles from its supply chain within 10 years.
Kevin Wall, the company’s material, planning and logistics director told the Financial Times that the company was confident it could realise its plan of reducing its carbon footprint by 2,621 tonnes this year.
The results are, Wall claims, courtesy of the company’s “milk run” – an integrated Europe-wide supply chain aimed at collecting components from 380 suppliers based in the UK and on the continent.
This consolidation of suppliers in a similar geographical area has reduced Jaguar Land Rover’s average road miles from 59,280 to 30,780 per week – a 52 per cent reduction.
It is, Wall claims, an essential part of a truly global supply chain strategy.
"Ten years ago our supplier base was mainly in the UK, but now it is truly global," says Mr Wall.
"You can't look at the purchase price any more, you have to look at the total landed cost, including freight, packaging, customs and the cost of returning any unique containers.
“It is difficult to calculate, but we have used this basis for several years and it takes into account both the financial and environmental implications of global sourcing."
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