Customer Value Driven by Procurement

Jaguar Land Rover

 

Customers of automotive firm Jaguar Land Rover (JLR) need to be able to experience premium service anytime and anywhere. Roadside Assistance Services (RSA) had been sourced by country or region, leading to a fragmented base with varying service levels. So the company conducted its first global tender for RSA services covering 41 countries. It was key to improve service level agreements (SLAs), with a strong focus on customer experience and cost control and ensure consistency across all European countries. It used a game theory-based tender process, aligning all commercial and non- commercial elements before the negotiation took place. This enabled the firm to negotiate customer experience alongside price. The result? The project delivered all strategic objectives including harmonised and enhanced SLAs and consistent service and customer experience. By delivering additional cost savings of 25% and also selling JLR vehicles through innovative incentive schemes, the team exceeded expectations while putting the customer firmly centre stage.

Judges’ comments: "Innovative use of game theory and so great to see that customer experience is taken as most important. Execution is solid, and great results. Love this entry!"

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