Supply chain enhancement through product and vendor development programme

• Published in: Journal of modelling in management Vol. 6; no. 2; pp. 164 - 177
• Main Authors: Hasrulnizzam Wan Mahmood, Wan, Mat Tahar, Nurulain, Nizam Ab Rahman, Mohd, Baba
• Format: Journal Article
• Language: English
• Published: Bradford Emerald Group Publishing Limited 01-01-2011
• Subjects: Automotive parts industry; Case studies; Equity participations; Localization; Manufacturers; Manufacturing; Product development; Production planning; Productivity; Research methodology; Statistical analysis; Suppliers; Supply chain management; Automotive manufacturer; Supply chain management; PVD programme; Automotive industry
• ISSN: 1746-5664; 1746-5672
• DOI: 10.1108/17465661111149566

Purpose - This paper aims to review the methods used by an automotive manufacturer in enhancing the supply chain management (SCM) system through a set up termed product and vendor development (PVD) programme. PVD was developed to eliminate problems faced due to late delivery and poor quality of supplies and availability of supplies at the lowest possible costs.Design methodology approach - The paper explores the step-by-step methodologies that have been employed by the PVD.Findings - Results overtime show that the PVD has improved the SCM system especially in the areas of quality and delivery services, other services and cutting costs that manufacturers had to face due to problems that arose in the shortcomings of the supply services.Research limitations implications - The PVD has managed to promote the localization programme and has also been able to establish qualified vendors through the structured vendor performance evaluation.Practical implications - Findings also establish that the PVD team is the key to success for development of the PVD programme.Originality value - The paper presents an original discussion about viewing PVD programme from a successful automotive manufacturer. The structured PVD programme helps the team better understand the product development process involving supplier selection and supplier performance measure.