Thursday, June 27

Perodua Suppliers Association replaces Perodua Vendors Club in rebranding exercise

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Dr Mahathir (ninth left), Musa (seventh left), other ministers and exco members of the Perodua Suppliers Association posing for a photo during the Malaysia Autoshow 2019.

KUCHING: The country’s largest automotive component supplier body, Perodua Vendors Club (KVP) undertook a rebranding exercise by renaming itself to the Perodua Suppliers Association (P2SA).

The new logo, which was introduced to Malaysian Prime Minister Tun Dr Mahathir Mohamad at the Malaysia Autoshow 2019 in Serdang last week, reflects the body’s commitment towards greater professionalism and its target of becoming world-class suppliers.

“The automotive landscape is rapidly changing and it is clear to us that the only way forward is to band together to meet these challenges as one,” P2SA president Musa Zahidin Tan Sri Ahmad Zaidee said.

Musa added that apart from the challenging market conditions with fiercer competition from global suppliers, the landscape of the Malaysian auto industry has changed drastically in the last five years.

“So far, Perodua has been the main contributor for local auto component manufacturers and we are taking the cue from them (Perodua) to look beyond Malaysia if we want to reap the opportunities available,” Musa said.

“In addition, we wish to acknowledge Perodua’s top management, Perodua President and CEO Dato’ Zainal Abidin Ahmad, Perodua Auto Corporation Sdn Bhd President Mr Masanori Takahashi, and Perodua Global Manufacturing Sdn Bhd President Datuk Ahmad Suhaimi Hashim for their dedication and commitment towards developing Malaysian vendors,” Musa said.

Perodua purchased RM5 billion worth of automotive components from local suppliers in 2018 alone.

The company has also indicated that it would purchase more than RM6 billion worth of components by 2020 via its extensive localisation activities.

Musa said that in addition to the commitment made by Perodua, P2SA has benefited tremendously from Perodua’s guidance particularly in helping to drive operational transformation among the association’s members.

These activities include the Vendor Resident Engineers Programme initiative where Perodua stationed its engineers to work at suppliers to understand the difficulties and challenges faced by suppliers, while at the same time minimise supplier business risk for forex and unmet volume, customised supplier support through short term credit terms, advance suppliers’ material purchase, and expansion of local purchase for economies of scale.

Musa said that as part of its rebranding efforts, the P2SA will further strengthen its best practices development for its members, not only in equipment and processes management, but also in human development programmes.

“We have organised events such as Karakuri competitions (mechanical-based methods of improving productivity in processes), dojo introduction and other industry-based activities in the interest of levelling up our members’ capabilities for Perodua and for Malaysia in facing global challenges,” Musa said.

“P2SA reflects our seriousness in facing the future within the automotive industry,” he added.

Currently P2SA has a total of 125 member companies with a manpower strength of just over 100,000 people.