Framework for localisation of resin supply chain in Malaysia automotive industry

Abstract

In the current business environment, supply chain management plays an important role in business activities, manufacturing industries, and the service industries in increasing the effectiveness and efficiency of their customer service. It is crucial for most industries to focus on the key factors of supply chain framework which are quality, cost and delivery (QCD) to achieve their targeted profit. In Malaysia, car manufacturing organisations depend heavily on international suppliers for the provision of components and materials utilised in their finished products. The objective of this research is to find out whether the existing resin supply chain framework can be improved by realigning the local resin compounder supply chain framework in the automotive industry in Malaysia. This research uses a case study method with multiple organisations and Delphi method. The framework’s development process involved case study method and Delphi method consisting of questionnaires and interviews. The validation process involved one Delphi round of questionnaire and interview. In Delphi round one, derivation of the proposed framework was obtained from the participant’s feedback. In Delphi round two, conceptual framework was developed from the participant’s feedback and consensus was achieved. In Delphi round three, refined and validated framework was obtained from the participant’s feedback. Based on the experts’ views obtained through the questionnaire and interview sessions, comparative comments were grouped. The consensus was obtained in order to achieve the key factors’ (QCD) effectiveness to strengthen the automotive industry in Malaysia. The research significance and contribution to the body of knowledge is the proposed framework via the realignment and improvement of the existing resin supply chain framework in the automotive industry in Malaysia through local compounder. By having this framework, it is expected to produce a strong impact on resin supply chain in the local automotive sector especially in terms of quality, standard, technical expertise, flexibility, cost variation, customer focus and delivery variation.