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US Jaguar dealers used to wait at least one week to receive parts from England

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US Jaguar dealers used to wait at least one week to receive parts from England. Parts were shipped in bulk by Jaguar to a US warehouse where they were split up, repacked and then shipped to individual dealers. Working closely with Federal Express, Jaguar initiated a new logistics system that shortened the time by four days. Under the new system, dealers order a part directly from Jaguar in England and the part is then air expressed via Federal Express. The time between order placement and receipt at the dealership is no longer than three days.

Comment on the change n Jaguar’s logistics system in terms of its relevance for providing customer service and the possible trade-offs in higher costs. Please explain in more detail.