'Procurement at Jaguar Land Rover needed support to build first vehicle outside the UK'

Will Green is news editor of Supply Management
12 June 2015

The procurement operation at Jaguar Land Rover (JLR) was supported by KPMG over two years to enable the company to start production in China, an event was told.

Jonathan Rimmer, senior manager at KPMG, said JLR had never built a car outside the UK before but had they needed to expand production to meet global demand.

Rimmer, speaking at the Management Consultancies Association’s Consultancy Buyers Forum in London, said JLR had global sales of 425,000, with a large proportion of demand coming from the newly wealthy in China.

A joint venture was set up with a manufacturer in China to build the Range Rover Evoque while KPMG supported JLR to ship out millions of components from the UK and other countries including Morocco and Japan. “Setting that up was not the easiest thing to do,” said Rimmer.

Rimmer said each Evoque contained 3,500 parts and 400 shipping containers carrying 89.3 million components had travelled to China before the first vehicle rolled off the production line in November 2014. “By next year the volumes [of components] are expected to triple,” he said.

Referring to the company’s transformation since it was bought by Tata Motors in 2008, he said: “They were facing bankruptcy seven years ago and now they are opening a new manufacturing facility in China.

“Making cars in the West Midlands is very different to making cars 7,000 miles away. How do you make procurement work? How do you make the supply chain work? How do you work with a new partner in China?”

Rimmer said JLR intended to open another manufacturing plant in Brazil and “in other places” to help meet its aim to produce one million vehicles a year by 2020.

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