2009 Annual Report - ChartNexus

Managing Director’s Review
66
As at the end of March 2009, our direct or first-tier vendors stood at a total of 221 compared
to 260 in our 2006 financial year. The consolidation of our vendor network enables the
Group to build stronger, more meaningful relationships with capable and competent
vendors. In turn, we can leverage on greater economies of scale, while enhancing overall
delivery quality.
The vendor community will continue to play a very significant role in our journey forward.
PROTON is committed to working even more closely with the vendors in order to improve
their capability, efficiency and efforts in reducing the cost of components in the next
financial year.
PROTON also remains true to its Early Vehicle Involvement programme where vendors are
encouraged to participate in the vehicle conception stage. The input we have received
during this stage for the Persona, Saga and Exora have proved to be invaluable especially
in the areas of component supplies and managing cost efficiencies.
Moving Forward
For us, the road ahead will continue to be challenging. The passenger car sector locally and
around the world, including the markets PROTON has gained a foothold in, will continue
to see softened demands as the pace for economic recovery remains uncertain.
PROTON will have to be more assertive in communicating its products’ unique selling
propositions to its markets both locally as well as internationally. Offering the “right car”
at the “right time” and at the “right price” will have a universal appeal throughout all
markets.
We will also continue to look in detail at our entire business value chain as we search for
innovative solutions to derive greater cost efficiencies. We will keep working with and
encouraging our vendors and distributors to play an integral role in this area.
At the same time, PROTON will continue to invest in human capital development by
providing adequate training programmes to our workforce. The people in the Company
must be fully exposed to best business practices in order to support our drive to build our
presence in the export markets.