Logistic Management: A Cost Reduction Exercise by a Malaysian Automobile Company
Authors: Majid, Ainun Haji Abdul; Yusuf, Iza Hairani Md
Source: Sustaining Competitiveness in a Liberalized Economy: The Role of Accounting, Issue data not provided , pp. 54-72(19)
Abstract:Recent discussions of strategic cost management maintain that cost management efforts should encompass the entire value chain from suppliers to the delivery of finished product to the final customer. Indeed, a number of management accounting studies argue that one of the primary reasons for Japanese manufacturers’ success in cost management efforts is their development of logistic management with suppliers using third party services. This paper examines the implementation logistic management in one of the Malaysian automobile company. Using the explanatory case study method, the case analysis reveals that the interactions between the company and its suppliers in utilizing third party services have transformed into an exercise of cost reduction, in line with its objective of becoming a cost leader. The result shows that the strategic collaboration with its supplier and third party service provider in logistical activities is the critical success factor in gaining its competitive advantage by means of cost reduction.
Document Type: Research Article
Publication date: January 1, 2009
- Sustaining Competitiveness in a Liberalized Economy: The Role of Accounting
The International Management Accounting Conference 4 was held in August 2007 in Kuala Lumpur to discuss issues pertaining to the role of accounting in liberalized economy. From the conference, it was clear that liberalized economy does impact the direction, nature and practices of accounting. In response to these challenges, accounting must play a proactive and relevant role to sustain the competitiveness of companies in the business environment. The book is organized in the following themes: Cost and Information Management; Performance Measurement; Strategic Alliance. The articles were written based on research findings of studies conducted in several countries including Malaysia, New Zealand, Indonesia, UK, India, Saudi Arabia and Botswana.
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