SCM Implementation in Malaysian Food and Automotive Industries: an Empirical Study

SCM Implementation in Malaysian Food and Automotive Industries: an Empirical Study

Malihe Manzouri, Mohd Nizam Ab Rahman, Harlina Wasilan, Baba Md. Deros and Haslina Arshad

Abstract: The purpose of this paper is to empirically compare the implementation of supply chain management (SCM) in the automotive and food industries in Malaysia. A questionnaire was used to identify the perceived problems and attitudes towards SCM. The questionnaire was distributed to 600 food and automotive organisations in Malaysia. A total of 62 usable replies were received from the automotive industry, and 140 from the food organizations. Structured interviews were used to find out how problematic issues in these organisations could be overcome. The key problems were identified as: a lack of information (automotive industry) and high costs (food industry). Benchmarking from experienced companies and conducting training courses were identified as important methods to reduce these problems. The paper provides insightful information on how Malaysian automotive and food organizations can improve SCM within their own organisations and supply chains. This includes the identification of important problems among these companies as well as measures to counter them. There is little documentation regarding the status of SCM implementation in the food and automotive organizations in Malaysia. Therefore, recognizing the most important problems in these industries, and focusing on the best techniques for overcoming these problems, was identified as a gap in the existing literature.

Keywords: SCM implementation, problematic issues, Food and Automotive companies

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