“A case study on risk management of Naza Automotive Manufacturing Sdn.Bhd.” / Nor Maizatul Asma Misman

Reliability of purchasing products from supplier or vendor has become among the greatest problem between buyer and supplier. It was exist from long time ago and give impact on manufacturing firm . In other word, supply failure is important because buyer dissatisfaction may induce related development or switching costs. The purpose of this paper is to research whether risk management program is suitable in handling and reducing the number of supplier failure. This case study approach is used based on observation of key informants, examining trends on risk management program used by Naza Automotive Manufacturing and also based on audit program conducted by them. Findings shows that manufacturing firm dissatisfaction increases relative to the accumulated impact of the supply failure, and is reduced when the manufacturer has implement risk management program to absorb the failure or shares blame for it. The supplier’s failure recovery reduces dissatisfaction to the extent that it demonstrates the supplier’s long-term commitment to the relationship. The findings indicate that attributes of the failure, the failure recovery, and context must be taken into account when considering how a supplier’s recovery may ameliorate the negative impact of a supply failure.The findings suggest that manufacturers should ensure that the delivery time given to supplier is enough,standardize and manage evaluation on obselete and delivery parts and also monitor the report on market price can be using in order to overcome, and improve efficiency on the discussed issues.