A Study of the Used-Import Vehicle Supply Chain in New Zealand

Abstract

The structure of the New Zealand automobile market has been evolving over the past two decades. After the government removed trade barriers, used-import vehicles were increasingly accepted by the public, and the good quality of Japanese second-hand vehicles matched consumer demand in New Zealand. Massive volumes of used vehicles are traded across national boundaries. As a result, organisations and industrial practitioners in Japan and New Zealand have been cooperating and coordinating for many years, building an international supply chain to provide a smooth flow of used vehicles from Japan to New Zealand. However, little is known about reuse and resale business operations in the used vehicle industry, in particular with respect to the international trade in used automobiles. This study adopted qualitative research methods to conduct in-depth interviews with 11 industry professionals. The aim was to provide a comprehensive understanding of the used-import vehicle industry’s operation and supply chain structure, and to interpret how used-import vehicle supply chains affect business practice and performance in used vehicle businesses in New Zealand. This thesis identified the overall network structure of the used-import vehicle supply chain from Japan to New Zealand, and clarified the chain operation and network connections between components. It was found that Japanese buying agents have integrated increasing numbers of services to provide a trouble-free trading platform, which has produced a direct-import model for used vehicle companies in New Zealand. This investigation also determined some common factors that influence best practice in used vehicle companies in New Zealand. This is the first research that has attempted to study international supply chain management in the used vehicle industry. It provides insights for both researchers and industrial practitioners with regard to supply chain operation and cooperation. The factors identified will be of particular benefit to industry professionals in understanding the status of used-import vehicle supply chain operations in New Zealand.