Degree
Master of Business Administration Executive
Faculty / School
School of Business Studies (SBS)
Year of Award
2023
Advisor/Supervisor
Dr. Rameez Khalid, Associate Professor, Department of Management
Project Type
MBA Executive Research Project
Access Type
Restricted Access
Keywords
Executive Summary
Pakistan Automotive Industry has been struggling lately under multitude of challenges owing to prevalent geo-political and macro-economic circumstances. As a result, the key OEMs in the industry have seen a significant rise in cost of production and the inventory of finished product. The situation has drastically changed over a few years where previously there were extraordinary lead times, shortage of supplies and frequent order cancellations. Such rapid changes in industry positions are an indicator towards larger underlying problem with the supply chain dynamics of the industry, necessitating further research into the subject area. The purpose of this research was to evaluate practical preparedness of Pakistan automotive industry to adopt CPFR (Collaborative Planning, Forecasting and Replenishment) as a methodology for addressing existing inefficiencies in the supply chain function. The study also identifies key challenges that will be faced for such implementation particularly related to technology and contract management. This research amalgamates both primary and secondary tools of research. Secondary research was conducted by reviewing literature available publicly on internet and libraries. Whereas Primary research was conducted by interviewing 15 industry experts and reviewing their response qualitatively using content analysis. The study findings revealed that the industry is generally aware about the concept of bullwhip effect and its implications. Respondents feedback helped in identifying specific methods which industry views as measures for mitigating the presence of bullwhip effect namely forecast accuracy, effective inventory management, communication, and others. An important aspect of the research was to highlight key technological and contractual challenges for CPFR implementation. Technological factors identified broadly included cost of infrastructure upgrade, training of resources, data security and others. While challenges pertaining to contractual aspect can be categorized under scope of agreement, assigning responsibilities and organizational changes. In line with the analysis, the research reasonably concludes that the Pakistan Automotive Industry is only partially cognizant of the CPFR tool. Nevertheless, the industry realizes the need for and importance of adopting a collaborative approach with trading partners for mutual benefits. However, any material change would require challenging the status quo in terms of the existing infrastructure and prevalent mindset. The paper closes with our recommendations for the industry going forward, in view of all constraints and enablers. Primarily the study suggests CPFR implementation through a ix pilot project by utilizing an agreement template developed as part of this research. In parallel companies should invest in development of its employees including leadership regarding collaborative concepts and data driven decision making. Existing ERPs have certain functionalities which should be fully utilized before expanding the IT infrastructure. Major OEMs should initiate feasibility studies to determine techno-commercial viability of CPFR implementation specific to their firms.
Pages
iii, 125
Recommended Citation
Hafeez, N., & Karim, S. F. (2023). Implementation challenges of Collaborative Planning, Forecasting & Replenishment (CPFR) in the Automotive Industry of Pakistan: Recommendations (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/620
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