Development of supply chain model for CKD (Completely Knocked Down) operation in light of Bangladesh automobile development policy

Abstract

Complete Knock Down operation in Bangladesh automobile industries is so far was limited to the producing three wheelers and assembling trucks, motor cycles and cars. Assembling bikes attained the economy of the scale due to tax cuts and large size of the local market. As long as imported reconditioned cars were allowed locally assembled cars would be costlier. It is apprehended that the people of Bangladesh desiring buy cars would not be able even to afford locally assembled car unless a comprehensive supply chain is established. The study was mainly a descriptive research. Data were collected from both primary and secondary sources using field methods and document analysis respectively. Primary sources of data were the key personnel responsible for policy making, procurement, training and operational support management of automobile industries. Secondary sources of data were published books and unpublished materials relevant to the study. The collected data were analysed qualitatively and quantitatively, as applicable, using descriptive analytical tools and was presented in descriptive forms. The identified challenges include Lack of skilled manpower, Inadequate Resources, Improper Inventory Control, Poor Planning and lack of Research and Development. Growing automobile markets, favourable government policies, cost advantage, increasing localisation efforts, rising export potential and infrastructure development were some of the prospects of CKD operations in the automobile industries of Bangladesh. The study proffered some strategies which include development of Skilled Manpower, promulgation of local content policy, Improvisation of Inventory Control, Efficient Planning and institutionalisation of R & D efforts. The study recommended among others that the automobile industries of Bangladesh may implement a comprehensive plan to develop skilled manpower, National Assembly may enact local content policy, Stakeholders may establish data centre, full pledged planning and dedicated R&D department.