Supply chain management practices in malaysia palm oil firm

Abstract

Globalisation leads to competitive business environment which resulted companies continuously striving for excellence in their operations. Among others, supply chain management (SCM) is used as strategic tool for companies to remain competitive than their competitors. However, there are lack of evidences in the existing literature on the supply chain practices in Malaysia particularly in the palm oil industry. The purpose of this research was to explore issues relating to supply chain management and its practices in palm oil firm in Malaysia. This study used qualitative investigation in a single case study setting of a palm oil firm in Malaysia. In-depth semi-structured interviews were employed with twenty-one participants from six subsidiaries companies of Felda Global Venture Berhad. Thematic analysis was employed to analyse the transcribed interviews. Findings from the study reveal the SCM practices for FGV are inter-subsidiaries obligation, trust, loyalty, strategic location, suppliers and customer relationships, information systems and internal integration. In addition, this study discloses the issues concerning the SCM practices in FGV are problems concerning communication, poor quality of materials from outside suppliers, conflicts between subsidiaries, logistics and pilferage of stock. Theoretically, the study contributes towards the development of a model for supply chain practices of palm oil firm in Malaysia. The model shows that the integration of SCM practices blend the resources and capabilities of FGV and the success of SCM practices relies on the strong backbone of element on the subsidiaries relationship. Methodologically, the study illustrates the effective use of qualitative study in the predominant quantitative approach in SCM field of study contribute to the SCM literature. Practically, this study adds a valuable contribution to the supply chain profession, palm oil bodies, and government bodies in term of the constructs of the supply chain that should be implemented in palm oil industry. Future research in this area are recommended to focus on the quantitative approach in order to generalize the findings to a wider context.