Proton Parts Centre Sdn Bhd, or PPCSB for short, is a wholly owned subsidiary that acts as the global hub for motor vehicle components, spare parts, and accessories for national carmaker PROTON. With demand for PROTON vehicles increasing, the company has set in motion plans to reinforce parts supply.
Established on 19 June 1992, PPCSB is a vital part of PROTON’s after sales improvement efforts by helping to strengthen the parts supply chain to meet increased market demand. Headquartered at Hicom-Glenmarie Industrial Park, it currently serves a network of 354 Body & Paint shops, parts stockists, and authorised service centres, along with 26 overseas distributors. Over the past two years, it has invested to expand its warehousing facilities by over 35% to ensure timely market supply in all regions.
The main facility occupies an impressive 26,700 square metres and is the nerve centre for operations, handling all functions crucial to the supply chain, including order processing, import, export, and East Malaysia transfers. More space will be added in 2024 with the opening of a new regional parts centre in Sabah during the second quarter of the year. On average, between 2,500 to 4,500 line orders are currently processed daily, highlighting the efficiency of PPCSB’s operations.
To meet the higher level of demand for parts, PPCSB has increased its stock holding level by 1.5 times over 2022 levels, ensuring a more resilient supply chain, equating to a current inventory worth over RM130 million comprising of 30,000 different parts. At the same time, stock transfers to East Malaysia have doubled in recent years as a new streamlined supply chain process boosts parts availability and enables direct deliveries from overseas vendors to East Malaysia. This will contribute significantly to the efficiency of operations in East Malaysia allowing for better parts availability.
PPCSB also increased its average daily delivery output capability by 35% while its proactive approach to process improvements has resulted in a 63% reduction in Work-In-Progress volume as more orders are fulfilled within the service promise committed timeframe.
The main improvement to operations however will come courtesy of a new Warehouse Management System (WMS) scheduled to be operational by a the end of March. Developed in collaboration with Geely and supported by Geely Logistics, this system is more than just a tool, offering a comprehensive solution designed for cross-country knowledge sharing. This collaborative effort emphasises the significance of digitalization and process optimisation in modern supply chain management and reflects the dedication to a seamless transition to a new era of efficiency and innovation in PPCSB’s operations.
Roslan Abdullah, Deputy Chief Executive Officer of PROTON, said, “PROTON is pleased to share our commitment in our parts warehousing ecosystem as our parts supply chain warehousing improvement plan for 2024 underscores our dedication to continuous enhancement. Our new warehousing system reflects our relentless pursuit in ensuring optimal solutions for our valued customers and we will continue making efforts to improve after sales service to deliver the highest levels of customer satisfaction”.
