By designing and implementing a global supply chain, KPMG has enabled JLR to launch its new Chinese factory on schedule, opening up huge market opportunities for its successful Range Rover Evoque model.
As a long-established UK company that had never built a vehicle outside these shores, JLR had neither the infrastructure nor expertise to independently set up a supply function with international reach. The function would need to transport hundreds of millions of vehicle parts a year to JLR’s new, state-of-the-art manufacturing facility in China.
Calling on its extensive automotive experience and know how, KPMG designed an operating framework based around a single centre of excellence. This ‘Trading Division’ would control an extensive network including supply hubs in the UK and Germany, as well as international and local Chinese logistics partners. Working with systems integrator TCS, KPMG also supported the design and implementation of an SAP solution in record time, to underpin the China supply chain, as well as future facilities in Brazil and the US.
In addition to providing strategy and operations and IT advisory services, KPMG also brought its impressive breadth and depth of expertise. KPMG's tax team designed the supporting processes and rules for customs, VAT and transfer pricing, while the People & Change team provided change management support for the new systems, carrying out testing and training.
JLR now has the capacity to satisfy the large and growing market demand in China, producing cars at far lower cost, and freeing itself from the risk of import duties and potential future trade restrictions.
The new supply chain organisation also propels JLR onto the global manufacturing stage, and transforms the company into a major UK non-vehicle exporter, providing a strong base for an exciting range of new models that can help the company achieve its ambitious growth targets.