PREMIUM QUALITY FOR PREMIUM BRANDS

The Best Relationship Management
PREMIUM QUALITY FOR PREMIUM BRANDS
Barbara Ferreira Garcia
[email protected]
Agenda:
1 – Why I made the decision to submit the entry.
·
2- What made this entry successful
3 - General overview of my entry
1
Decision to submit the entry and why ?
•
To be able to Showcase how much Purchasing can influence, promote and facilitate
high impact projects within a company
•
To demonstrate that Purchasing is not just about cutting costs
•
To incentivise other Purchasing Professionals to showcase what they do day in and
out (great job and adding value to the company)
•
To demonstrate that supplier and stakeholder relationship is a crucial skill to have in
Purchasing
•
To show how Purchasing must understand the Business Objectives to a level that
the function can help directly those to be achieved
•
To show how Purchasing can help and changed the foundations of JLR and G&P
relationship.
•
G&P were treated as a commodity supplier, where the main Purchasing objective
was to extract the lowest possible cost from them. Changing the approach by
responding to Jaguar Land Rover Business Objectives, has seen a significant
growth in the value both companies derive from the relationship, which goes far
beyond the simple commercial transaction.
2
What made this entry successful
•
Focus on long term saving and hidden costs rather than short term savings and cost
reductions
•
The role that Purchasing played being the catalyst of the projects to be successful and
complement/ interact to each other
•
Benefits for both companies (Growth, control, right links in and out of JLR)
•
Integration within JLR of projects across different areas (Sharing knowledge, learning and
data among the plants) promoting proactive actions and changes in JLR
•
Trust built between the different areas in JLR and Gobel & Partner having Purchasing as
a Catalyst
•
High level of commitment from both companies in changing the situation
3
General overview of JLR and G&P entry
'Premium Quality for Premium Brands‘
•
The approach to quality was fragmented across the product range and across different
manufacturing facilities.
•
16 different suppliers were used to undertake parts rework and containment across the 3
UK plants
•
Differing quality regimes and an inability to share data across the company.
•
No central information gathering
•
Everything was done via a manual process and valuable information were getting lost
•
Reactive work
•
G&P were tasked with finding faulty parts, with a perception from other suppliers that they
were living off others failures only
4
General overview of JLR and G&P entry
A big Change was needed
•
A cross functional team was formed under the leadership of:
•
Dr Wolfram Liedtke (Quality Director) and his team
•
Terry Sampson (STA Director), and his team
•
Barbara Ferreira Garcia (Procurement manager) and her team
•
Members of the G&P management team including Managing Director, Dino
Kyriacou.
•
The key objective was for JLR (both brands) to exceed the quality levels of
Lexus, Mercedes, Benz, Audi and BMW in the JD Power by 2015.
5
General overview of JLR and G&P entry
•
JLR and G&P wanted now to improve the quality of inbound components
by changing the emphasis from detection (or cure) to prevention of
defects being manufactured in the first place
•
16 suppliers were reduced down to one supplier, G&P, for an initial 3 year
contract
•
Far simpler supplier management process
•
Opportunity for G&P was far more dramatic
•
Green light to start implementing the innovation and ideas they had been
nurturing for the previous 5 years
•
Purchasing gave them cause to invest in their infrastructure, and further
develop their Qtrak quality system
•
G&P and JLR could now identify those high hurts suppliers and target their
parts more effectively
6
General overview of JLR and G&P entry
•
Some JLR suppliers clearly required more help to reach the required quality levels than
others
•
Together with G&P, JLR developed a joint Supplier Technical Assistance; their staffs
now go into JLR suppliers, review quality and measurement processes and make
recommendations for improvement.
•
This has clearly benefited JLR and the quality of its products,
•
Gave G&P new product lines it can offer in the market place to its other customers.
7
JD Power reports
Unsatisfactory situation and an incredible turn around
In 2008, Jaguar Land Rover (JLR):
JD Power tables for quality;
•
Jaguar held the 9th position
•
Land Rover held the 34th position
In 2012, Jaguar Land Rover (JLR):
JD Power tables for quality;
•
Jaguar held the 2nd position
(now 1st)
•
Land Rover held the 12th position
8
General overview of JLR and G&P entry
•
•
Reject parts were as high as 65%, reduced to ~ 5%.
The award entry was able to draw a link between improved supplier performance,
through improvement in plant quality performance and finally through to JLR's
performance in the JD Power surveys.
9
General overview of JLR and G&P entry
Summary
•
JLR and G&P were in a traditional adversarial relationship
•
G&P were one of a number of suppliers that JLR treated as commodity suppliers.
•
G&P selection was based on low cost and historic, fragmented relationships with various
JLR staff
•
Environment encouraged those suppliers to focus more on beating their competitors and
less on the key aim for JLR, improving quality.
• Reducing the number of suppliers and introducing an environment of
trust and transparency has allowed the relationship between G&P and
JLR to grow and, most importantly, deliver extra value to JLR and its
customers.
10
Personal and team commitment to link the overall Business cross
functional objectives and improvements while generating real
sustainable saving
JLR wanted to improve
its brand quality from its
current position and also
beat Lexus Audi, BMW
and Mercedes in the JD
Power Surveys.
The Jaguar brand has
achieved this objective; it
tops the JD Power
rankings, beating all
other manufacturers
Land Rover has
significantly moved its
position in the table,
sitting just below BMW in
12th place.
11
Thank you!
Questions?
12

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