Supplier development framework in the Malaysian automotive industry: Proton’s experience

In a dynamic market, firms need to evolve from traditional to strategic purchasing which aims to reduce the cost of the purchase and that might imply standardization of components, delivery time and levels of inventory. This effort will usually include key suppliers as joint problem solvers and with...

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Main Authors: Abdullah, Rashid, Lall, Maharjan Keshav, Tatsuo, Kimbara
Format: Article
Language:English
Published: Faculty of Economics and Management, Universiti Putra Malaysia 2008
Online Access:http://psasir.upm.edu.my/id/eprint/680/1/bab02.pdf
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author Abdullah, Rashid
Lall, Maharjan Keshav
Tatsuo, Kimbara
author_facet Abdullah, Rashid
Lall, Maharjan Keshav
Tatsuo, Kimbara
author_sort Abdullah, Rashid
collection UPM
description In a dynamic market, firms need to evolve from traditional to strategic purchasing which aims to reduce the cost of the purchase and that might imply standardization of components, delivery time and levels of inventory. This effort will usually include key suppliers as joint problem solvers and with these problem-solving models to work with; the firm’s attitude towards suppliers may change from confrontation to trust and partnership. From the buyer-supplier relationship perspective, the procurement practice of the buyer is critical and acts as a window to nurture the supplier development effort. This article presents the result of a study on supplier development in the Malaysian automotive industry, which focused on PROTON, and its role in developing the suppliers’ relationships and development. This study indicates that PROTON and its suppliers’ development program plays a crucial role in developing and extending comprehensive support to its supplier’s firm such as supplier selection and appointment, development, match making, and promoting continuous performance development and improvement programs.
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spelling upm.eprints-6802015-07-06T00:28:59Z http://psasir.upm.edu.my/id/eprint/680/ Supplier development framework in the Malaysian automotive industry: Proton’s experience Abdullah, Rashid Lall, Maharjan Keshav Tatsuo, Kimbara In a dynamic market, firms need to evolve from traditional to strategic purchasing which aims to reduce the cost of the purchase and that might imply standardization of components, delivery time and levels of inventory. This effort will usually include key suppliers as joint problem solvers and with these problem-solving models to work with; the firm’s attitude towards suppliers may change from confrontation to trust and partnership. From the buyer-supplier relationship perspective, the procurement practice of the buyer is critical and acts as a window to nurture the supplier development effort. This article presents the result of a study on supplier development in the Malaysian automotive industry, which focused on PROTON, and its role in developing the suppliers’ relationships and development. This study indicates that PROTON and its suppliers’ development program plays a crucial role in developing and extending comprehensive support to its supplier’s firm such as supplier selection and appointment, development, match making, and promoting continuous performance development and improvement programs. Faculty of Economics and Management, Universiti Putra Malaysia 2008 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/680/1/bab02.pdf Abdullah, Rashid and Lall, Maharjan Keshav and Tatsuo, Kimbara (2008) Supplier development framework in the Malaysian automotive industry: Proton’s experience. International Journal of Economics and Management, 2 (1). pp. 29-58. ISSN 1823-836X http://econ.upm.edu.my/ijem/vol2_no1.htm
spellingShingle Abdullah, Rashid
Lall, Maharjan Keshav
Tatsuo, Kimbara
Supplier development framework in the Malaysian automotive industry: Proton’s experience
title Supplier development framework in the Malaysian automotive industry: Proton’s experience
title_full Supplier development framework in the Malaysian automotive industry: Proton’s experience
title_fullStr Supplier development framework in the Malaysian automotive industry: Proton’s experience
title_full_unstemmed Supplier development framework in the Malaysian automotive industry: Proton’s experience
title_short Supplier development framework in the Malaysian automotive industry: Proton’s experience
title_sort supplier development framework in the malaysian automotive industry proton s experience
url http://psasir.upm.edu.my/id/eprint/680/1/bab02.pdf
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AT tatsuokimbara supplierdevelopmentframeworkinthemalaysianautomotiveindustryprotonsexperience