Last update: 05/02/2009 16:53:48
This Good Practice Case Study highlight the efficiency benefits resulting from streamlining of the supply chain at the Jaguar Cars production plant, Halewood, Merseyside. I
In the past, separate suppliers of components arranged transport for their own goods to the factory resulting in inefficiencies in a number of areas, including waiting time, excess stock levels and vehicle fill. Significant cost and environmental benefits can however be achieved by altering their logistics systems. This is possible by proactively managing transport from suppliers rather than allowing deliveries to be supplier-led. This operational change has already been implemented with huge success in an automotive contract between Jaguar and NYK Logistics (UK) Manufacturing & Retail Ltd.
After a tender process, the contract for a new logistics system for Jaguar's Halewood operations was awarded in August 2000 to NYK Logistics, part of the Japanese NYK Group. Whereas suppliers were previously responsible for arranging the delivery of components into
Halewood, NYK Logistics now manages the entire process of collecting components from the suppliers and delivering into Halewood. Delivery by NYK Logistics does not end in a vehicle park or warehouse, but goes right through to the production line. Within
Halewood there are 90 delivery routes to the point where the component is fitted.
The new system gave Jaguar the opportunity to re-engineer its supply chain from a 'demand push' situation to a lean system where the supply chain 'pulls' product in. NYK Logistics is fully integrated with Jaguar and its computer systems, and is seen as a full partner rather than just a supplier.
AEA Technology Environment
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Cost to the Department: £23,206.00
Actual start date: 11 June 2003
Actual completion date: 01 March 2004
Jaguar Sprints Forward
Author: Transport Energy BestPractice
Publication date: 01/03/2004
Source: Transport Energy BestPractice
More information: http://www.transportenergy.org.uk/downloads/jaguar_CS_final.pdf