ADAPTING BUYER-SUPPLIER RELATIONSHIP PRACTICES IN THE LOCAL INDUSTRY

• Main Authors: Latifah Che Amad, Abu Bakar Abdul Hamid, Norzafir Md Salleh, Chong Siong Choy
• Format: Article
• Language: English
• Published: Universiti Sains Malaysia 2008-01-01
• Series: Asian Academy of Management Journal
• Subjects: supplier development programme; descriptive analysis; manufacturing firm; Malaysia
• Online Access: http://www.usm.my/aamj/13.2.2008/AAMJ%2013.2.2.pdf

This study examines the types and extent of supplier development activities undertaken by an identified manufacturing firm, along with the importance of supplier development goals. Data was collected through a cross-sectional survey of 26 respondents, consisting of officers, engineers, managers and senior managers from various sections within the buying firm's organisation. The analysis is based primarily on descriptive statistics. The results reveal that the supplier-specific factors are more prominent predictors of the outcomes of the supplier development efforts as compared to the other factors. The manufacturer's focus on the supplier development programme appears to be a short-term, results-oriented approach involving limited or no significant efforts on the side of thebuying firm. There is evidence indicating that the manufacturer has not fully utilised the expertise of its suppliers in designing its products, since there is lack of supplier involvement in the early stages of the design and development activities. The overallresults point to numerous deficiencies in the supplier development programme. Practical implications are provided in light of the findings.