The relationship between supplier assesment, collaborative goal setting and performance monitoring on Malaysian Automotive Manufacturing Performance

The Malaysian automotive industry plays a critical role in national economic development, yet faces persistent challenges in quality, efficiency, and global competitiveness. Supplier Development Programs (SDPs) have emerged as strategic initiatives aimed at enhancing the capabilities and performance of suppliers to support manufacturing excellence. This study investigates the impact of three key SDP components which are supplier assessment, collaborative goal setting, and performance monitoring on automotive manufacturing performance in the Malaysian automotive sector. Utilizing a quantitative research approach, data were collected through structured questionnaires from industry professionals involved in SDPs across automotive manufacturing firms. The findings reveal positive relationships between each SDP component and automotive manufacturing performance indicators, including quality, cost efficiency, and lead time. The study emphasizes the importance of aligning supplier development strategies with operational goals to foster sustainable improvement and competitive advantage. These insights contribute to both academic literature and practical applications, guiding manufacturers and policymakers in optimizing supplier engagement for enhanced manufacturing outcomes