McLaren Automotive
Global Supply Chain
BAI2315
Section 400
Prepared for: Douglas Marshall
By: Sina Meas, Jake Berenshteyn, and Ali Digaspari
Contents
I.
Executive Summary ............................................................. 3
II.
Introduction ......................................................................... 3
III.
Plan ...................................................................................... 4
Strategic Goals:..................................................................................................................................................................................... 4
Mission Statement: .............................................................................................................................................................................. 4
Business Plan and Objective: ............................................................................................................................................................. 4
IV.
Level One ............................................................................. 5
PESTE Analysis: .................................................................................................................................................................................. 5
Political: ..................................................................................................................................................................................... 5
Economic: ................................................................................................................................................................................. 5
Social: ......................................................................................................................................................................................... 5
Technology: .............................................................................................................................................................................. 5
Environmental: ........................................................................................................................................................................ 5
SWOT Analysis: ................................................................................................................................................................................... 6
Product Characteristics: ...................................................................................................................................................................... 6
Operational Strategy: ........................................................................................................................................................................... 6
Competitive Analysis:.......................................................................................................................................................................... 7
V.
Level Two ............................................................................ 7
Inventory Objectives: .......................................................................................................................................................................... 7
Intermediaries: ...................................................................................................................................................................................... 7
Documentation: ................................................................................................................................................................................... 8
IT: ........................................................................................................................................................................................................... 8
Organizational Structure:.................................................................................................................................................................... 8
Risk: ........................................................................................................................................................................................................ 8
VI.
Level 3 .................................................................................. 9
Sourcing Strategy: ................................................................................................................................................................................ 9
Product Build Process:........................................................................................................................................................................ 9
Plan Delivery: ....................................................................................................................................................................................... 9
Plan Returns: ........................................................................................................................................................................................ 9
VII. Source................................................................................. 10
IT: ......................................................................................................................................................................................................... 10
Inventory: ............................................................................................................................................................................................ 10
Documentation: ................................................................................................................................................................................. 10
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Intermediaries: .................................................................................................................................................................................... 11
Delivery: .............................................................................................................................................................................................. 11
Outsourcing tires: .................................................................................................................................................................. 11
Benefits: ................................................................................................................................................................................... 11
Factor-input: ........................................................................................................................................................................... 12
Market access:......................................................................................................................................................................... 12
Risk factor: .............................................................................................................................................................................. 12
Efficient outsourcing: ........................................................................................................................................................... 12
Capabilities Analysis: ............................................................................................................................................................. 13
Reliability: ................................................................................................................................................................................ 13
Other: ....................................................................................................................................................................................... 13
VIII. Make .................................................................................. 14
Scheduling: .......................................................................................................................................................................................... 14
Incoterms: ........................................................................................................................................................................................... 15
Lot Sizing and Time Bucket: ........................................................................................................................................................... 15
Inventory: ............................................................................................................................................................................................ 15
Resources: ........................................................................................................................................................................................... 15
Production Strategy ........................................................................................................................................................................... 15
Laws and Regulation ......................................................................................................................................................................... 15
Structure: ............................................................................................................................................................................................. 16
TQM: ................................................................................................................................................................................................... 16
Risk: ...................................................................................................................................................................................................... 16
IX.
Consume ............................................................................ 17
Packaging and transporting: ............................................................................................................................................................. 17
Air freight: ........................................................................................................................................................................................... 17
By Sea:.................................................................................................................................................................................................. 17
Commercial risk: ................................................................................................................................................................................ 18
Country risk: ....................................................................................................................................................................................... 18
Currency risk:...................................................................................................................................................................................... 18
X.
Return ................................................................................ 19
Return Policy: ..................................................................................................................................................................................... 19
Return Process: .................................................................................................................................................................................. 19
Gatekeeping: ....................................................................................................................................................................................... 19
Reimbursement: ................................................................................................................................................................................. 20
Conclusion: ......................................................................................................................................................................................... 20
XI.
Bibliography ...................................................................... 21
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Executive Summary
This report will examine in detail the global supply chain for McLaren Automotive and their P1 flagship car,
the supplier of the tires – Pirelli of Russia and one of the destination markets for the P1 – Canada. This
report will describe the 5 main steps for a global supply chain; Plan, Source, Make, Consume and Return and
how they pertain to McLaren and the tire supplier., it will also describe the current risk McLaren may entail.
Introduction
We’ve decided to create a global supply chain for McLaren Auto motive’s P1. We are sourcing tires from
Russia, putting the car together in England and selling to customers in Canada. Our global supply chain is
broken down into five sections; plan, source, make, consume and return. In each section, we will discuss the
major components associated with completing the section as part of our supply chain, as well as explain the
risks that may be encountered.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Plan
Our supply chain will consist of:
Russia
England
Canada
Strategic Goals:
Our goal at McLaren Automotive is to maintain or increase our market shares.
Mission Statement:
The mission statement at McLaren Automotive is to deliver the best customer service, by beginning with our
global network of suppliers through to the engineering team at the McLaren Production Centre.
“Change the Game” (Automotive, 2013).
Business Plan and Objective:
Our objective at McLaren Automotive is to produce high quality automotive products with unsurpassed
craftsmanship using bespoke designs.
Our business plan to meet our objective is to create a facility that allows us to oversee all operations involved
with producing the automobile. The facility will house a Research and Development Department, the
manufacturing warehouse, the testing facilities and showrooms which are all built using modern sustainable
technology.
To meet our objective we source our required parts from progressive, reliable and respectable suppliers.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Level One
PESTE Analysis:
Political:
There is currently economic sanctions levied on Russia imposed by the US; this could affect the global
trading activities which Russian companies are involved with. Until conflict between Russia and Ukraine has
ceased, it is not known how the effects of the sanctions will affect participating companies.
Economic:
The Russian economy is currently in conflict with Ukraine which has caused the US to impose sanctions on
the country. Prior to the sanctions, the economy was stable but was deep in corruption. The extent of how
extreme corruption is within the country could affect the costs of doing business with the country.
Social:
Social activist can find it irrational to spend such excessive amounts of money on a car, when that money can
be put to greater good, like feeding the starving.
Technology:
McLaren must maintain its technological innovations in order to maintain a competitive advantage. In order
to do so, the McLaren Production Centre must be state-of-the-art and McLaren must also employee the most
brilliant minds. These two factors will play a big role in operating costs.
Environmental:
McLaren is at the leading forefront of environmentally friendly. The Production Centre is a modern stainless
steel facility that is odorless, spotless and creates a collaborative environment that inspires brilliance.
McLaren is also the leader in producing hybrid automobiles, promoting a cleaner and better future.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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SWOT Analysis:
Strength
Weakness
·
Established strength in automotive innovations
·
Manufacturing distinctive, high-quality automobiles
·
Epitome of racing cars
·
State-of-the-art all-in-one facility that house R&D, production and testing
·
High price point
·
Limited retailers
·
Limited qualified repair shops
·
The unique car may be hard to resell if returned, due to the customization
Opportunities ·
·
A new class of cars that will be available to the middle class consumers
Advanced technology will allow McLaren to outperform other competitors, if
McLaren is willing to invest the funds
Threats
·
Creating a new lower class will lower the exclusivity and the higher models will lose
some of its prestige
·
advanced technological innovations may allow another company to be in lead of
McLaren
·
With US sanction on Russia, we could lose an important supplier
Product Characteristics:
McLaren automobiles are extremely high in value and delicate in nature. To ensure that there is minimal risks
in damages incurred while the cars are being transported, the product needs to be insured and shipped very
carefully.
Operational Strategy:
The cars are made to order and customized by the customers. This allows for zero inventories and reduces
our warehousing costs.
There is one manufacturing facility in England called the “McLaren Production Centre”. This facility is stateof-the-art and has extremely high quality control. There is extensive research and testing applied to each car
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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before it is deemed acceptable to be delivered to the client. By manufacturing the automobile in-house,
McLaren will eliminate the risk of producing cars that are using low quality parts and have quality issues.
Our bespoke tires are outsourced from Russia. The tires are carefully inspected once received from the
transporter. They are only accepted if they have met all requirements to fit the cars.
Competitive Analysis:
Our biggest competitor of bespoke manufacturer that build custom order cars using high quality parts and
innovative technology are:
1.
Porsche
2.
Koenigsegg
3.
Pagani
Level Two
Inventory Objectives:
Each car is custom ordered, requiring a down payment before each order is sent to the production
facility. The objective of a custom order will produce zero inventories.
The cars will be kept at the manufacturing plant between the time that the cars come off the production line
to the time that it will be transported and delivered to the customer. This time frame is usually one day to
less than 3 days.
The inventory required to manufacture the cars will be kept at the manufacturing plant. Every part and
component is shipped to the manufacturing plant, where it will be needed to assemble the parts. The parts
are ordered JIT, thereby reducing inventory costs.
Intermediaries:
The use of an intermediary to receive the car at the Canadian port will be required to oversee the deliverance
and receiving of the expensive car.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Documentation:
Required documents include:

Shippers export declaration

Cargo control document

Bill of lading

Customs invoice

Commercial invoice

Safety documents

Transport documents
(Livingston Intl., 2014)
IT:
McLaren Automotive is at the forefront of technological innovations and we strive to maintain high
standards using up to date technology and IT systems that keeps us connected to our suppliers and
workers. Using a reliable system allows us to be able to maintain high quality and efficiency.
Organizational Structure:
At McLaren there is a flat organizational structure. The CEO’s and managers both are equipped to deal with
suppliers and remedy any possible problems that may affect our production line. Employees are also
permitted to put a stop or extend labour on a car if they suspect there is a defective part or if the previous
work on the production line was faulty.
Promoting responsibility at all levels of operation safeguards the possibility of a problem that could affect the
outcome of the overall car.
Risk:
The biggest risk associated with outsourcing from Russia, is the quality and timeless of receiving the tires and
also the unknown outcome of the US sanctions imposed on Russia.
The commercial risk associated with Canada is the possibility of a recession. In 2008, a recession hit the USA
which affected Canada since they are US's closest ally and trading partner.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Level 3
Sourcing Strategy:
Our sourcing strategy is to order based on JIT with safety stock and a reorder point.
Product Build Process:
McLaren automobiles will be built to order. The cars will be manufactured completely in-house by hand, in
England, in order to maintain integrity of the technological knowledge.
The bespoke tires will be outsourced from Russian sources. Patents will be maintained and required on all
components and the build technology.
Plan Delivery:
Once the cars are completed they will be delivered to the customers directly or to a dealership where the
customer will pick up the car.
Plan Returns:
The car will include a 3 year manufacturer’s warranty, where any defects will be fixed or replaced by
McLaren. Additional warranty can be purchased on the car.
Cars can be returned on the condition that it meets the implied warranty or there was a mistake that was
made, and the car was not as stated in the contract
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Source
IT:
Our IT solutions are designed to be optimized for our supply chain solutions. We have a system to keep track
of our shipments of incoming material (tires or raw materials) and to notify us the moment a shipment breaks
with our planned timelines. We have managed to minimize the amount of people involved in the supply chain
in order to remove the element of human error that may lead to shipment bottlenecks. Since our products are
similar and require similar materials - the change from one car model to the next requires minimal adjustment
within the software.
Inventory:
Our inventory system is designed to keep zero inventories on hand, meaning there are no extraneous parts
laying about the factory. The only exception to this rule is for tires. They are ordered in bulk since they are
the single most replaced part of the car, a suitably supply stock of tires is ordered for the vehicles and are kept
on site in temperature controlled areas to keep them in top shape. As each car is ordered and the initial down
payment is made- the parts necessary for the construction are ordered and/or manufactured as they are
needed. Such a policy is described as a JIT system - Just in Time. The benefit of such a system is that
inventory maintenance costs are minimized and also that raw material costs are minimized - again due to
ordering only what we need immediately, as opposed to what we may need/use in future. As cars are
completed they are shipped off to their respective owners - typically a home delivery. This policy allows us to
keep holding costs at a minimum and also allows us to adjust delivery times to suit the client as necessary;
changing the delivery time of one car is a much easier exercise then changing a ship full of 500 cars.
Documentation:
Our required documents for importation of our tires are as follows.
-
Shippers export declaration

Cargo control document

Bill of lading

Customs invoice

Commercial invoice

Safety documents

Transport documents
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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These documents will allow us to import our tires as necessary for our vehicles.
Intermediaries:
McLaren does not utilize intermediaries except for transport within the destination country, and in that case a
reputable customs broker is used to make sure all fees are paid. Once the vehicle has landed at its destination
port, a 3rd party transporter is commissioned to deliver the vehicle to the client. With regards to shipping of
raw material and/or the tires - the manufacturing company provides the shipping service and delivers the raw
material or tires to us at our factory in Woking. By maintaining a strict minimum of outsiders involved in the
GSC - we are able to keep our supply chain efficient and low cost.
Delivery:
Our delivery process is fairly straight forward and designed for optimum efficiency and security. Our vehicles
are shipped via air freight or sea going vessel depending on the destination. All administrative documents are
completed by McLaren Automotive before the shipping is completed in order to keep the holdup time as low
as possible for the benefit of the client. With air freight the cost is significantly higher than with a sea borne
delivery, however it is also much faster ~ 2-3 days total from embarkation in the UK to delivery at its
destination versus 2-3 weeks at sea for the same car if transported by ship. Each vehicle is shipped on a pallet
and then the pallet is inserted into a metal container to prevent impacts and external damage. This container
is then either flown or shipped as per the clients wish. Insurance is high regardless of the method of transport
owing to the cost of the product being shipped, but it is significantly higher with air transport.
Outsourcing tires:
We require custom-made, unique tires that have specific dimensions and characteristics that are required for
the car

McLaren Automotive will form a regular strategic alliance with Pirelli Tires; both parties will pursue
the goal while remaining independent of each other.
Benefits:
Costs;

All costs associated with research, development and production of the tires are the responsibility of
the tire manufacturing company however research data and testing is the responsibility of McLaren.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Factor-input:

the outsourced tire manufacturing company has advanced technologies to create bespoke tires and
specially trained personnel to oversee quality and performance of the exclusive tires that McLaren
requires
Market access:

yes there is an advantage because the tires are custom-built by top quality manufacturer that are
located the closest to us which would reduce the cost of transporting

The tire company is the best of the best at manufacturing the tires required of McLaren
Risk factor:
Quality;

Quality has to be paramount because the tires need to follow strict safety regulations due to the
extreme application of the car
Ethical concerns;

Making sure that the tire company is not associated with any illegal activities
Patent protection:

Tires are specifically developed for McLaren

Tires need to have patent protection so that there are no replicated tires
Efficient outsourcing:

Cheaper for us to buy the tires

McLaren needs to make sure the tires adhere to strict quality guidelines

Tires would be delivered on time in top quality as cars are manufactured or as ordered to mitigate
excess inventory cost
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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
Tires would give McLaren a competitive advantage due to the fact that they are patent protected and
combined with the car itself makes the car unique and one of a kind

Manufacturer needs to be able to supply tires on demand

Tire company can produce as many tires as need and have the capability to increase production as
necessary
Capabilities Analysis:
Expertise;

Tire company has the necessary skills and knowledge to develop custom built tires to meet the
qualifications
Financial;

Tire company has financial means to research, create and manufacture these tires from scratch

Tire company is established enough if in the case of an economic crisis they are able to maintain production
capabilities for one calendar year and has a secure line of credit at various banking institutions
Quality;

Tire company is able to maintain the high standards of quality needed for this particular type of product

If there are any quality issues, the tire company is able to modify standards to meet McLaren’s needs
Reliability:

The tire company is very reliable, McLaren has dealt with them for multiple years

The tire company has a track record of building tires with the needed requirements
Other:

Management has the ability to understand and communicate McLaren’s updated requirements

Ability to mitigate downtime
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Make
Our master production schedule (created daily) will outline scheduled dates for the car completion to meet
delivery dates. Make is basically what is required in the production, assembly, and eventually the delivery of
McLaren cars. They are made as orders are confirmed with the buyer. The amount of cars that are made
depends on how many McLaren wants to produce. Some of the exclusive cars, such as the P1, are capped at
375 for a total production run. In this case, no more P1’s will be made again. The 12C, which isn’t considered
as exclusive as the P1, are capped around 2500 cars per year. These cars are hand assembled by 82 engineers
with a production rate of 1 car per day until the end of the production run.
The following parts are needed for each car that McLaren manufactures:

Carbon fibre body pieces

Carbon fibre frame

Drivetrain (Germany-AMG)

Tires (Russian from supplier)

Wheels

Electronics

Electric Motor

Battery

Kers Systems

Computer
Scheduling:
All cars that will be made in the production run have already been pre sold; therefore we have an invoice for
375 cars. The production will be continuous until all of the cars are complete. It takes 1 day for assembly and
7 days for tuning, preparing and shipping. Assuming that all raw materials and assembly pieces are in stock, it
will take 8 days to finish the P1. We will begin production on March 1, 2014 and it will continue until
September 1, 2015. It will take a total of 18 months for all of the cars to be produced, tested and delivered to
our customers. Delivery will take place when each individual car is completed, and this will be done by plane
or by boat, depending on the location of the customer. If they are located in Europe or the Middle East, their
car will be flown to them. If they’re located in North America, the car can be shipped by boat.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Incoterms:
The incoterms that will be used are FCA-Free Carrier Airport or CIF depending on the method of shipment.
Lot Sizing and Time Bucket:
We will be creating one car every day.
Inventory:
The demand is constant for McLaren cars. For this model in particular, the demand is short term due to the
limited number of cars that are allocated. The warehouse is centralized in the UK.
Resources:
A large amount of start-up capital is required for raw materials, physical facilities to manufacture the car, tools,
utilities, operating costs and administrative costs. We need exceptionally skilled human resources. Artisans,
craftsmen, engineers, technicians- mechanical and electrical, production manager, test driver, quality control
technicians
Production Strategy
It is a level production strategy. There is a demand on a regular basis.
Laws and Regulation
Our car has to pass crash safety tests, product safety testing, highly accelerated stress screening, speed tests,
emissions test, and has to be a minimum height off the road. As for process laws and regulations, we need to
determine the position of the steering wheel (right or left) for the country we are shipping to. We need to
consider the countries rules on emissions, the fuel available in market, and the noise regulations. For the
packaging, we need to label using the country's official languages and cover the car with plastic to prevent
scratches. For labeling, we need to have the VIN number on the car, our safety labels have to be in multiple
languages, there needs to be fuel labels and handling labels. To follow health and safety laws and regulations,
our production floor has to be clean, free of static discharge, uncluttered and spread out. Workers have to
wear non slip shoes and a uniform. Production has to be in a physical straight line. Painters need to wear
masks and coveralls as well as sealed and ventilated paint boots and protective eyewear. The building must be
equipped with fire extinguishers and proper lighting.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Structure:
For the assembly, the car body will make its way down the assembly line to the parts that will be added on to
the car. The engine is JIT.
TQM:
We will do a shakedown of the entire car before it is delivered. We will do a repeated dyno and driving tests
to assess the suitability of the car before delivery. There will also be a visual inspection of the entire vehicle to
make sure there are no scratches. The inside and outside of the car will be tested for workability. The car will
then be prepped for delivery.
Risk:
There are always health and safety risks for workers in the factory. They will be provided with protective
clothing and masks
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Consume
Our consumers are the actual end users who order, buy and will own the car once completed. Once an order
is made, there is an initial deposit for the car which gives us a guarantee and confirms the order. The
specifications will be written out in the receipt of order by McLaren. Once the customer confirms, the order
is processed. Once the order is confirmed, our inventory will be checked to determine if required parts are
available. Payment for the remaining amount is made on layaway option, with an initial deposit, another
deposit 1/3 through the production process and then the final payment of the remainder amount.
We will require the following documents for the delivery on one of our cars:

Certificate of origin

Certificate of authenticity

DOT regulations, includes emission

Bill of Lading

Commercial invoicing

Insurance document

Customs and duty documents

Export declaration
Packaging and transporting:
Our car is transported by sea or air depending on final destination. Since we have decided to export to
Canada, to Canada the car will be exported by sea. The car will be shipped on a pallet and strapped down.
Air freight:
The cost of air freight is higher but more reliable for shipping a delicate item such as a McLaren car. It is a lot
faster but we are limited to where the car can be shipped to, because there needs to be an air strip available.
The insurance for delivery by plane is more expensive, and planes are also limited to how much cargo they
can carry.
By Sea:
If we ship by sea, our cars will be zip tied down in a metal crate. The benefits of shipping by boat would be
that they could hold much more cargo and shipping is less expensive compared to air. There is also more risk
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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in shipping by boat because the weather can affect how much the boat rocks and can potentially damage our
car. It also takes a lot longer to deliver by boat.
McLaren will be responsible for all the paperwork, documents, customs and duties involved with exporting
the car to the consumer. All of the expenses associated with the documents, customs and paperwork will be
included in the final price of the car. We will outsource a customs broker in Canada to oversee the import,
and to complete all required documents, to ensure that the car is in perfect condition and be present to
receive the car once it has reached Canadian ports. This intermediary is the point of contact within Canada
and will notify us of any concerns, damages, problems and returns.
A transporting truck will pick up the car from the port, to deliver it to the final customer. The truck driver
will be given the bill of lading, final point of destination, and all required documents they would need to
transport the truck and to present it to any officials in case of being pulled over. Once the car has reached the
customer, they will need to present some form of identification to the truck driver in order to obtain the car
and will need to sign for the car.
Commercial risk:
There is always commercial risk. The shipping company could go on strike which would lead to delays. In
this case we will need to find another reliable and secure transporter. The paperwork could be incomplete,
improperly filled out or lack certain paperwork or documents, in which case the customs broker should pick
that up and notify us. The transporter could also be involved in accidents, the product could get lost,
damaged, stolen, and there’s also the risk of inclement weather leading to delays.
Country risk:
The risks involved with doing business in another country could be that emission laws change, the DOT
regulations changes, or there could be importing limits which could affect our ability to export into Canada.
Currency risk:
There is always risk in currency fluctuations which would require refund of payment or maybe even extra
payment. For example, a car that was worth $2.1 million is now worth $2.2 million. This could also mean
marginal loss of revenue.
MCLAREN AUTOMOTIVE - GLOBAL SUPPLY CHAIN
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Return
Return Policy:
Reasons which are acceptable for returning a car are:

The car does not meet expectations

There is faulty details in the finish

Financial reasons

Change of mind

There is a part that needs to be fixed- manufacturers defect

The car needs to be fixed, was involved in an accident
The policy at McLaren includes a 3 years unlimited mileage warranty. This warranty is against any
manufacturer's defect or unsatisfactory craftsmanship. The customer may purchase an extended warranty for
an extra cost. There is no policy for buyer’s remorse, but the customer may return the car to McLaren or the
dealership, but at a monetary loss to the customer.
Return Process:
If a return has been decided upon, the customer must contact McLaren or the closest dealership. The car
must then be brought to the dealership to determine whether the car is to be returned or to be fixed. If the
car needs to be fixed, a qualified mechanic will determine whether the work can be done at the dealership or
the car must be shipped to the McLaren Production Center in England. All costs associated with
transporting the car back to the Production Center in England will be the responsibility of McLaren, since the
customer has paid a large sum for the cars, McLaren in ensuring great customer service. McLaren will offer a
loaner car if one is required in the meantime.
Gatekeeping:
There are two gate keepers. One is the manager of the closest dealership who decides whether there are good
reasons for the return. He/she also decides whether McLaren in England should be notified. The other
gatekeeper is the mechanic who will decide if the car is to stay at the shop or be sent back to England to be
fixed.
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Reimbursement:
If the car is to be returned, the customer will receive a wire transfer to his/her account, minus a portion of
the sale of the car. Since the car depreciates once it has left the premise, there is a reduction in the
reimbursement.
If it is required that the customer bring the car to the dealership to have assessed, and the costs associated
with the transporting are extravagant, since there is only one retailer in North America, McLaren will
reimburse a portion of the transporting costs to the customers.
Conclusion:
In conclusion we feel that with our highly advanced global supply chain and JIT inventory system we can
fulfill our mandate of producing high quality automotive products with unsurpassed craftsmanship using
bespoke designs in spite of our tire manufacturer facing political upheavals domestically and we can deliver
the car wherever it needs to go.
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Bibliography
Automotive, M. (2013). Our DNA. Retrieved April 1, 2014, from McLaren:
http://cars.mclaren.com/legacy/our-dna.html
Common Export documents. (2013, March 26). Retrieved April 8, 2014, from Export.gov:
http://export.gov/logistics/eg_main_018121.asp
LivingstonIntl. (2014). Shipping to Canada: Customs documents simplified. Retrieved April 1,
2014, from Livingston Trade Up: http://www.livingstonintl.com/resource/shipping-tocanada-customs-documents-simplified/
Loveday, E. (2013, May). McLaren Quickly Sells Two-Thirds of Total Production Run of P1 Plug-In
Hybrid. Retrieved April 23, 2014, from Inside EV's: http://insideevs.com/mclarenquickly-sells-two-thirds-of-total-production-run-of-p1-plug-in-hybrid/
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