This research focuses on the supply chain management of a leading motorcycle
manufacturing company which has gone through several challenges and successfully grown to become worlds largest motorcycle producer. Bestselling product of this company is a 70 cc bike which being used allover Pakistan. Beside motorcycles company also produces a variety of power products, including lawn mowers, tillers, outboard motors and generators. Three product groups which are automobiles, motorcycles, and power products are the pillars of the company today. Since day one company has a belief which is Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality yet at a reasonable price for worldwide customer satisfaction. Supply chain processes of company are of international standards and it is ensured that customers do not suffer from supply chain process. Company keep itself updated to latest changes in technology change their processes accordingly. Because of the fact that company operated globally, it has to maintain healthy relations with suppliers and treat all of them equally regardless of their size, location and origin. Purchasing principle of the company can be described in the following way We will buy from the most competitive suppliers in order to fulfill customer satisfaction. They do not purchase from suppliers but they purchase for their customers they just add value to it. Customer satisfaction is what this company strives for and they expect from their suppliers to develop the same commitment and devotion to customer satisfaction as they have. Company believes that quality can be maintained and improved during their production process and continuous improvement is needed to keep quality up to the mark with other competitors. It is the duty of each supplier and each individual worker to guarantee that quality is according to standards. In order to reply swiftly to customer's demands, it is necessary for the company to manage its supply chain by minimizing lead times. Suppliers are likely to have a dependable and flexible manufacturing processes, which results in reduced lead times and hence improve productivity. To manage rapidly varying customer demands, and to provide them high quality at lower costs company depends greatly on proven suppliers as a source for development and improvement of technology. Their core focus is on using technology and synchronizing it through the supply chain channels to achieve and sustain uniqueness, which makes up identity for their products. It is vital for a supply chain management department to have a customer-oriented approach and to provide effective leadership for the entire supply chain network that expects to fulfill companys mission and vision. Such management effort promotes mutual trust between the supplier and Honda. LITERATURE REVIEW (Suthikarnnarunai, 2008) has mentioned that the automobile industry is currently in a phase of changeover. Specialists are analyzing the current picture of the industry and trying to find solutions for upcoming problems. (Suthikarnnarunai, 2008) has highlighted weak points in industry and recommendations on resolving the same, much of the research has been done with a conclusion that current scenario of automotive industry lies between build to forecast and build to delivery, and build to order. However, neither of these processes have been fully transited to complete build to order. This is the reason that many authors argue that solution to current problems in supply chain sector of automobiles is complete transformation to build to order. (Suthikarnnarunai, 2008) has also highlighted another important issue of lean manufacturing. Most of the leading automobile companies have tried to implement and improvise this process and have benefited from rising return on investments. But it is still perceived that these big firms were only able to implement lean manufacturing on core surface issues and not wholly. Therefore, (Suthikarnnarunai, 2008) argues for implementing the notions of lean manufacturing in product development as well as manufacturing. Such improvements will develop the financial performance of the whole industry.
(Kasim & Rajamanoharan, 2010) have presented several important findings in their article. Firstly they argue that supply chain management practices are automatically implemented in any automobile company without its formal announcement. For example a correct supply chain planning would guarantee a continuous flow of supplies from suppliers and suppliers suppliers thus avoiding late delivery problems. Moreover, with the advancement of technology and globalization many companies have moved their focus towards a partnership based relations with suppliers in order to keep healthy relations with the in future. (Kasim & Rajamanoharan, 2010) have repeatedly stressed on the significance of the relation between supplier and purchaser. Trust was interpreted as a main element in supply chain partnership particularly in allowing more active communication and information sharing such as on demand planning and in resolving upcoming issues. It also endorses a win-win situation for both the company and its suppliers throughout the chain. (Kasim & Rajamanoharan, 2010) have further suggested, that automobile companies need to educate their suppliers and provide them with proper resources for implementin and benefiting ftom Just-in-time manufacturing. Authors have also suggested that a firm should try to minimize its supplier base as it helps to manage them efficiently and bring in process improvements rapidly. (Kasim & Rajamanoharan, 2010) highlighted another important issue that in most automobile companies, proper performance evaluation and measurement techniques are not being used and most of the Key performance indicators measuring techniques are financial in nature there are very few companies which are following formal supply chain performance measurement method. (Kasim & Rajamanoharan, 2010) also investigate that accounting managers have significant role in supply chain management as they are involved throughout the supply chain cycle and transactions. Many other researches have stated that accountants have a limited intrusion in supply chain. Different views of different researches should be taken as a caution and should be kept in mind when taking any decision relating to supply chain.
BIBLIOGRAPHY
Kasim, E. S., & Rajamanoharan, I. D. (2010). SUPPLY CHAIN MANAGEMENT PRACTICES OF AN AUTOMOBILE MANUFACTURER IN MALAYSIA. Asia-Pacific Management Accounting Journal, 69- 88. Suthikarnnarunai, N. (2008). Automotive Supply Chain and Logistics . Proceedings of the International MultiConference of Engineers and Computer Scientists .