INTRODUCTION

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 .