Analysis of the Supply Chain Disruption Risks in the Malaysian Automotive Remanufacturing Industry-a Case Study

Abstract

Remanufacturing has now become one of the effective strategies for reducing the negative impact on the environment by prolonging the products' life cycle in the automotive sector. Still considered as a relatively new industry in Malaysia, the low remanufacturing rate coupled with the lack of standardization are thus seen as causing a high inclination of disruption occurrences in the remanufacturing operations. As such, this paper had identified and investigated the existing disruptions in four problematic areas, namely the production planning, infrastructure facilities, distribution networking and inventory management of the automotive remanufacturing firms in Malaysia. From the SPSS analysis and calculation of the mean and standard deviation values on the semi-structured interviews that were conducted in three remanufacturing companies, the highest contributor to the disruption risks was found to have resulted from the difficulty in obtaining the spare parts components in the production planning process. By also exploring the awareness level on environmental sustainability and the significance of remanufacturing processes among the remanufacturer companies, this analysis is thus deemed useful for not only identifying suitable actions that can be taken for mitigating the various risks faced by the automotive remanufacturers in Malaysia, but also in solving the disruptions of the remanufacturing supply chain system.

Enhancing Supply Chain Performance by Exploring the Role of Technological Aspects in Supply Chain Management in the Local Automotive Industry in Malaysia

“…Previous research has showed that there are various difficulties that would have a negative impact on supply chain performance as a result of it. These challenges include buyer-supplier collaboration, chain partnership quality, customer service, supplier network performance, and information flow [27][28][29]. As a result, knowing the customer and improving the buyer-supplier connection are crucial for attaining high performance.…”

Supply chain optimisation for recycling and remanufacturing sustainable management in end-of-life vehicles: A mini-review and classification

“…This study adopted the CA method for critical literature review to draw the essential points of the issues raised related to the supply chain. Ropi et al (2020) analysed the problematic areas in mitigating the different risks encountered by Malaysian automobile remanufacturers and determined the appropriate steps to resolve the interruptions and challenges in remanufacturing the supply chain system. Masoumi et al (2019) presented a process-oriented systematic review to deal with the automotive industry's sustainable supply chain management issues.…”

Development, Critical Evaluation, and Proposed Framework: End-of-Life Vehicle Recycling in India

“…Despite the fact that the automobile industry and ELV recycling system are potentially intertwined [58], they are not working together and collaborating. For the dismantling and other subsequent operations, the ELV dismantler needs accurate and valuable information from the manufacturers.…”