Universiti Tu Tunku nku Abdul Rahman Faculty of Business and Finance (Academic Year 201!201"# 2 01!201"# $anuary 201" Tri%&ester UBT'20 )*+,-T,.- &A/A+&/T BA.)*R *F &ART,/+ (*/-# BA.)*R *F BU-,/-- A'&,/,-TRAT,*/ A'&,/,-TRAT,*/ (*/-# /TR3R/UR-,3 BA.)*R *F /+,/R,/+ (*/-# ,/'U-TR,A) /+,/R,/+ YAR 24 and 5 +R*U3 A--,+/&/T A--,+/&/T .*6R -T .ourse 'etails
Course
: Bachelor of Marketing
Year and Semester
: 2016 trimester 1
Tutorial Group
:T
Tutor!s "ame
: #ncik Mohamad $ared %in Mohamad Makmor
&ecturer!s "ame
: #ncik Mohamad $a $ared %in Mohamad Ma Makmor
Assi7nment 'etail
Topic
: Tiong "am &ogistics Compan'
(ue (ate
: Friday4 18th9 &arch4 201"4 :eek ; (before 12900<9m9#
)mpo )mport rtan antt "ot "otee
: Su%m Su%mis issi sion on of assi assign gnme ment nt is the the res respo pons nsi% i%il ilit it' ' of of the the stu stude dent nts* s*
-tudent 'etails /ame
-tudent ,'
1* +hoo Shi Yrun
1,-BB00,.
2* &i & im "ian C/e
1-BB02
* Sarah Chen Yi Tian
1,-BB01
1
Tan &ih Ch'n
1-BB00.
2
Teoh 3ou 4ei
1-BB0.2 1
,
Yap #e 5an
10-BB012
,* Yap #e 5an
10-BB012
Assi7nment overall marks=
2
Universiti Tunku Abdul Rahman Faculty of Business and Finance (Academic Year 201!201"# $anuary 201" Tri%&ester UBT'20 )*+,-T,.- &A/A+&/T BA.)*R *F &ART,/+ (*/-# BA.)*R *F BU-,/-- A'&,/,-TRAT,*/ (*/-# /TR3R/UR-,3 BA.)*R *F /+,/R,/+ (*/-# ,/'U-TR,A) /+,/R,/+ YAR 24 and 5 &AR,/+ -.& F*R +R*U3 A--,+/&/T /o 9
+uideline .riteria
Ratin7
1*
.om
marks
2*
Analysis
1" marks
*
-trate7y Analysis
5 marks
,*
Recommendations
8 marks
*
.onclusion
5 marks
3ro>ect *r7ani?ation
marks
Total &arks
Actual -core
50 marks
.omment
:
3
/ame of &arker
= @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
-i7nature of marker= @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
'ate
= @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
4
Assessment
1* )ntroduction
2* -nal'sis
3a7es
1
271
2.1 Industry 2.2 Competitors 2.3 Firm’s Current Supply Chain & Logistics Situations
2-4 -! !-13
* Strateg' -nal'sis
1,71
,* 3ecommendation
1671.
* Conclusion
1
3eferences
20
.ontent
5
190 ,ntroduction
Toing "am &ogistic 8oldings Berhad 9as founded in 1 and it %egan as a small scale cargo %usiness handling consolidated cargo and micro distri%ution 9ithin 4enisular Mala'sia* The compan's e;pansion %egan in 1. 9hen Tiong "am %ecame an incorporated enterprise and in the earl' 12< 9here the' e;tended their reach across the %orders of Singapore and Thailand*Since then< Cam%odia< =ietnam and China< the ne9 economic centre of the 9orld< ha>e %een added to Tiong "am!s trucking and 9arehousing net9ork* Besides< to enhance their de>elopment< Tiong "am also em%raced the po9er of integration* This simple 'et effecti>e idea has seen their gro9 from a mere transportation %usiness to 9arehousing< customs for9arding< cold room facilities< e;press deli>er' and e>en crane and forklift rental ser>ices* -t the same time< the compan' has also in>ested hea>il' in )T infrastructure as 9ell as sophisticated handling facilities and e?uipment for our (istri%ution Centre in Shah -lam to ensure the' are constant progress into the 21st centur'* "o9ada's< Tiong "am has e>ol>ed into one of the largest total logistics ser>ice pro>ider in the region 9ith a reputation for efficienc'< inno>ation and ser>ice par e;cellence*#ast Mala'sia has also %een included into Tiong "am!s trucking and 9arehousing net9ork* -t present< the' ha>e a fleet of o>er 2000 trucks and a 9orkforce of o>er 000 emplo'ees to meet the needs of their customers across the region* Tiong "amha>s %een listed on the +uala &umpur Stock #;change @+&S#A since 12*ther than that< Tiong "am consistentl' rides high on the Bursa Mala'sia< pro>ing that Tiong "am had instilled confidence not onl' in our clients %ut in>estors too in the 'ears to come*
6
290 Analysis 291 ,ndustry 2.1.1 Land freight industry
&and transport is define as the transport of goods< passengers< materials< commodities< and animals %' using the roads 9ith using >arious t'pes of >ehicles and motori/ed mechanisms< including tractors carr'ing goods< passengers and animals< from time to time< from three79heeled >ehicles to all t'pes of automo%iles no9ada's< including different t'pes of trucks @Samane< 1A* $reight transport is considering as one of the %ack%ones the ph'sical process of transporting commodities and merchandise goods< commodities and ra9 materials to markets* Carriage charges 9ill %e paid for transportation of goods %' land< sea or air* The maor re>enue generating products are electric and electronic< and then come to %ulk products*
The land freight industr' sector< there are , chief modes of land transportD the' are path9a's transport< road9a's transport< tram9a's transport and rail9a' transport* 4ath9a's is pla'ing an important role of land transport< this is the oldest traditional t'pe of transport that can %e find in the forest areas< 9hich in the hill' areas and the t'pe of remote places< this is used %' the animal and human transports* The road9a's transport< this is the >er' fundamental and important t'pe< transport %' using roads< the 3oad Transport (epartment Mala'sia @3T(A< the tram9a's transport< the cars 9hich call ask tram cars< run on the rails 9hich is >er' good and suita%le mode of the transport 9hen goods carr' in the pack< peak and %us' hours* The 3ail9a's transport< 9hich used to sa' the pioneer of the modern transport< it carries estimated goods and people in a large ?uantit' @S9ati< 201A*
The ser>ice sector also included 9arehousing ser>ice< there are fe9 functions of 9arehousing there are storage< price sta%ili/ation< risk %earing and grading and packing* The primar' focus function of 9arehousingis a construction of %uilding that are using to store goods and materials* )n this industr' uses different t'pes of 7
e?uipment and facilities< these arranged according to the transportation modes that the goods need* The transportation t'pes of modes areusing the road< sea< ocean< rail9a'< etc* 5arehousing is >er' critical process for the main flo9 control in the suppl' chain net9ork and acti>ities< it not onl' acted as the maor influencer and the speed and the efficienc' of the ser>ice le>el that pro>ided to the customers* The performances and the compan' profita%ilit' of the compan' are ha>ing a great impact from the 9arehouses as 9ell* -nd the 9arehouses ha>e to load and unload the goods from trucks< someho9< some of the 9arehouses unloading the goods from rail9a's< airports< or seaports also< 9hen the' unload< the' often need forklifts and cranes for mo>ing the hea>' goods* There are a num%er of t'pes of goods could %e stored< there is ra9 materials< materials 9hich like spare parts< finished goods< it ma' %e manufacturing products< agricultures< construction materials< etc* There are fe9 t'pes of 9arehouses found< and it could %e grouped into go>ernment 9arehouse< %onded 9arehouse< pri>ate 9arehouse< pu%lic 9arehouse< and co7operati>e 9arehouse* Go>ernment 9arehouse is o9ned and regulated %' the go>ernment agencies< %onded 9arehouse can %e classified into the management control %' the go>ernment too< as this agencies get the license and the permission to operate from go>ernment< pri>ate 9arehouse 9hich means the o9nership %' the manufacturers themsel>es for storing stocks and goods and co7 operati>e 9arehouse is use for the co7operate medias @-d>ameg< 2016A*
2.1.2 Tools used to describe the land freight industry
The tools used %' land freight industr' are containers< haulage< trucks and 9arehouses* The containers help the land freight to transport the containers from one place to another place %' using the roads from one location to the destination customer re?uested* The haulage and trucks< the truck has different t'pes< light< medium and hea>' trucks 9hich used to carr' different t'pes of goods< from light to hea>' goods* -nd the 9arehouse< it uses to store the goods< storage of ra9 materials< commodities< etc* )t also uses as the unload and loading up ser>ices* &ogistic in Mala'sia< it is a trade dependent econom' countr' 9hich could transported the large >olume of goods to and from glo%al 9orld markets and also in the local region< the
8
maor high9a's used to connect the #ast 5est and "orth South of Mala'sia< , ports are in>ol>ed< )poh< Segamat< "ilaidanTe%edu @Ministr' of Transport Mala'sia< 201A
2.1.3 Key competitors
There a num%er of ke' competitors that encountered %' Tiong "am logistic holding %hd and one of the maor competitors is 8ar%our7&ink Group Berhad< it is one of the top ten of the multimodal transport operators< 9hich pro>ided total logistics ser>ices< for instances< door to door ser>ice from land< sea< road and rail freights< 9hich included the haulage< container< trucks< 9arehouse< custom clearances< cargo< etc*
9
292 .urrent .om
The current competitors are centur' logistics< complete logistic< freight management<
8ar%our7link<
integrated
logistics<
consortium
logistic<
M)SC<
"ation9ide< See8up< Tasco< Transcocean and Yinson* -nd one of the main competitors that 9e choose is 8ar%our7&ink< 9hich 9e think it has the potential to gro9 %igger in the future as it has >er' glo%ali/e %usinesses< and no9 it acts as the main competitors of Tiong "am* 2.2.1 Competitors profile
8ar%our7&ink Group Berhad incorporated in 2002< the' strengthened all related %usiness acti>ities and the' listed in the Bursa Mala'sia securities Berhad on 6 Eanuar' 200,< it main firm focuses o%ecti>e is planted in the shipping and total logistics ser>ices< engineering and construction sectors in the past ,0 'ears< this 8ar%our7&ink Group has de>eloped >er' steadil' and pro>ided ser>ices to satisf' the customers! needs< it has reputa%le %rand name 9ithin the industries sectors the' operates so far* The %ackground of the compan'!s founder started their %usiness in Sara9ak< he reali/ed that this industr'!s potential is high< he set up the %usiness %' pro>iding transportation and for9arding ser>ices to Sara9ak Shell compan' 9hich is oil and gas compan'< emplo'ees and facilities are limited* )n 1.0F0s< the maor petrochemical proects for e;ample like Mala'sia &i?uefied "atural Gas< -S#-" Bintulu and Shell Middle (istillate s'nthesis< 8a%our7&ink Group pro>ides logistics ser>ices to these proects* - transformation transformed and e;panded the ser>ices to offer 9arehousing< transportation< air< sea and land freight to hea>' haulage< ship chart ering and other logistic ser>ices in nation9ide* The' focus and >er' emphasi/e on Total Customer Satisfaction in all ser>ices* 8ar%our7&ink Compan' is al9a's looking for9ard to >alue creating opportunities< therefore< the' no9 has headed into the shipping line industr' ac?uisition of container and cargo >essels@8ar%our7&ink Group Bhd*< 201A*
10
2.2.2 Competitive Offering
8a%our7&ink Group Bhd has offering >arious t'pes of logistics ser>ices< 9arehousing< custom %rokerage< freight for9ard @air or oceanA< logistic proect management< distri%ution management< suppl' chain management and container haulage* The transportation and handling ser>ice focuses on door to door concept< make it necessar' component of their ser>ice focus point< 9ith the large fleet of transportation e?uipment< 9ith the e;pertise that ha>e more than 2 'ears e;periences< the great s'stems< al9a's pro>ided the good and fast solution to their customers all the time< the proect cargo handling and deli>er'< the container haulage< the general cargo transportation and small parcel deli>er' is included too* "e;t 9ill %e the freight for9arding is also door to door links 9hich intergraded to the 9orld9ide ser>ices< close relationship 9ith carriers< for instances< go>ernment agencies and statutor' %odies 9hich ena%le and con>enience for them to deli>er 9ith relia%le condition< these processes are customs clearance< co7ordination< consultanc' ser>ices in ta; and marine< application of permits< cost e>aluation< proect management assistances< insurance co>er and the accounta%ilit' proect cargo report* The 9arehousing is >er' secure and managed professionall' 9hich a>aila%le at >arious location in the countr'< for their distri%ution channel< the' has open 'ard storage< container stuffing and unsnuffing 9ork< in>entories control and record* >er' e;pertise ste>edoring process< high skilled team to handle loading and discharged to impro>e the producti>it'< the forklifts and skillful operators suppl'< the lashing 9orks< etc* 8ar%our7&ink Group Bhd*< the' pro>ide the e?uipment leasing and rental ser>ices on trucks< trailers< prime mo>ers< forklifts< sk'master< crane< tractor and roller* The' gi>e %acked up in 2, hours maintenance ser>ice from their teams of e;pertise< to gi>e guarantee of trou%le free helps and ser>ices* )t also pro>ided the general cargo transportation< oil tanker ser>ices and lo9%ed trailer ser>ices @8ar%our7 &ink Group Bhd*< 201A*
11
$igures sho9
the
tools
that
used
%'
8ar%our7&ink Group to transport the goods*
2.2.3 Competitor’s goals
8ar%our7&ink Group Bhd*< the' ha>e the goal on the' %elie>e the' could success in customers! satisfaction< to esta%lish their position as the leading total logistics pro>ider in logistic region< pro>iding more inno>ati>e ser>ices< creati>e< efficienc'< and e;ercising the fle;i%ilit' and used to adapt changes< create trust and team9ork 9ith all related emplo'ees< customers< contractors and pu%lics* To pro>ide cares for all people and also en>ironment< doing e;cellence core in the %usiness acti>ities* -nd the people in the 8ar%our7&ink Group Bhd* could do their %est %' contri%uting the e;pertise in each ser>ice the' pro>ide* The a%ilit' to ensure the customers! needs and satisfaction< to %uild stronger future< set the glo%al standards and also enhancing the >alues of 8ar%our7&ink Group Bhd* @8ar%our7&ink Group Bhd*< 201A 2.2. Competitor’s !trategy
The long term strateg' for8ar%our7&ink Group Bhd*is doing good in corporate social responsi%ilit' as this reflects the corporate sustaina%ilit' commitments< to ma;imi/ing the long7term economic >alue and remain the Group!s core >alue and maintain a sustaina%le %usiness gro9th* Through this strateg'< the commitments of corporate responsi%ilit' ena%les them to perform high standard of good ethics< pro>ide 12
high standard of ser>ices and meet customers! %usiness partners e;pectation< this could long term attract and retain the ?ualit' customers and emplo'ees< it is >er' important in the %usiness practices@8ar%our7&ink Group Bhd*< 201A* -s 8ar%our7&ink group contact 9ith the man' communit' dail' %asis< the' has the philosoph' of 5hen 'ou learn< 'ou teachD 5hen 'ou earn< You Gi>e*H )n this long term strateg'< the marketplace of 8ar%our7&ink Group the group 9ill continue stri>e for highest standard of %est practices and maintain good frame9ork< mainl' to maintain ma;imi/ing long7term economic >alue and sustaina%le %usiness gro9th* The 8ar%our Clu% set up for the emplo'ees to make them more interacti>e and 9ork as a famil'< more cohesi>eness< as a 5orkplace Social Clu%H< the more fun and more colla%oration of a 9orking team< the more harmon' en>ironment< the emplo'ees eno' and 9illing to gi>e the %est 9orking performances and communicate 9ith the customers in a 9onderful condition @8ar%our7&ink Group Bhd*< 201A &astl'< to impro>e and assure the %usiness operation to ha>e positi>e impact on emplo'ees< customers< en>ironment and communities< a good en>ironment can nurture them< and trust< mutual respect< good relationship %et9een shareholders< stakeholders< this could long term to maintain group sustaina%ilit' and profita%ilit' gro9th@8ar%our7&ink Group Bhd*< 201A
13
29 Firms .urrent -u<
Tiong "am &ogistics 8oldings Berhad has the inner skills and capa%ilities that gi>e their organi/ation special competencies and competiti>e ad>antages in e;ecuting strategies in pursuit their mission* =ariet' in logistics facilities is a po9erful strength for Tiong "am &ogistics* -s one of the largest total logistics ser>ice pro>iders in the -sia< Tiong "am has forged a proud reputation for efficienc' and ser>ice par e;cellence %' pro>iding the >arious di>ersifications into >arious complementar' supporting ser>ices for their transportation %usiness* Therefore< Tiong "am can de>elop and e;ecute a customi/ed deli>er' plan for the customers from container haulage to cross7docking ser>ices< customs %rokerage to cold room facilities< e;press deli>er' as 9ell as crane and hea>' transport ser>ices* B' pro>iding the di>ersif' facilities< Tiong "am a%le to meet the larger customer!s range needs and re?uirements* -t there< the' successfull' scoped a larger market opportunit'< market share and higher profita%ilit' than other logistic compan' that onl' pro>ided one ser>ices* #b$ !trong brand name.
Besides< the ne;t strength 9ill %e Tiong "am has the strong %rand name* Tiong "am esta%lishes since the 'ear 1s until no9 2016< Tiong "am has ,1'ears of e;perience in market* The strong %rand and longer e;isting in the market can lead to higher %rand recognition* 5hen customers are shopping for considering a compan' to perform a ser>ice< the' recogni/e 'our compan' in the running* Consumers are more likel' to choose a compan' that the' recogni/e o>er something unfamiliar< e>en if the' don!t kno9 a great deal a%out 'our compan' at the time* This %usiness theor' also makes Tiong "am to eas' introduction of other ser>ices* 5hen a compan' alread' has a strong %rand and lo'al customers< customers 9ill often %e interested in the ne9 products or ser>ices* #c$ &atural 'as %ehicles #&'%$
14
$urthermore< Tiong "am &ogistics is also the first that used "atural Gas =ehicles @"G=A than other logistics compan'* "G= is the greenest and lo9est7cost transportation fuel a>aila%le toda'* Tiong "am gained the en>ironmental and health %enefits %' using the "G= since "G= are helping to impro>e air ?ualit' %' displacing petroleum7po9ered cars< trucks and &orries that contri%ute a%out percent of the car%on dio;ide pollution found in ur%an areas* )nstead of earning mone'ironment* Thus< the maor %enefit of using "G= is reduced cost* This is %ecause it is cheaper and cleaner than the gasoline petrol* This 9ill help Tiong "am to reduce the transportation operation cost e>er' 'ear and lead more to profits earning*
15
2.3.2 "nternal analysis of firm’s (ea)nesses #a$ *ea) supply chain
Tiong "am also has their dra9%acks that hinder them in e;ecuting strategies in pursuit of its mission* There are se>eral 9eaknesses from Tiong "am* $irst of all is the 9eak suppl' chain* Suppl' chain starts 9ith the materials to make 'our product or people 'ou rel' on to create 'our ser>ice* )t also includes the e?uipment for making 'our product procurement< 'our storage capa%ilities and deli>er' function* Tiong "am compan' sho9s up 9ith a poor suppl' chain management is %ecause the' are still using the s'stem called Transmit S'stem< a s'stem 9ill choose the least cost carrier 9hich all in>entories meets the transit time re?uirements onl' 9ill start to deli>er to destination* Suppl' chain %reaks do9n al9a's stall Tiong "am a%ilit' to deli>er product and make mone'* $or e;ample< the unnecessar' dela' lead to increase cost and indirectl' reduce the profits earns* )n a serious case it ma' increasesrisk of reputational damage* #b$ Lac) of advanced technology
&ack of ad>anced technolog' is also one of the compan' 9eaknesses* "o9ada's< Tiong "am is still more depends on paper document signing rather than cellular technolog'* Inlike other companies @G( #;pressJ 5orldgate #;pressA the' are using the Telematics and smart sensors de>ices* Those technolog' de>ices can rein>ent distri%ution solutions< and impro>ing communications< logistics and in>entor' e7tracking* )n short< 9ithout the help of l atest technolog' de>ices caused the operation and processes to slo9 do9n and created an ineffecti>e 9orking en>ironment* #c$ +ependency
&ast %ut not least< dependenc' is also the 9eakness of Tiong "am* B' handling the 9orks to the third part' ser>ice@4&A is a%out a large commitment and high relia%ilit' structure to function* But too much dependenc' 9ill %e 9orst* This dependenc' puts the Tiong "am!s customer in an uncomforta%le situations if pricing schemes or ser>ice relia%ilit' from the third part' ser>ice@for e;ample Cekap 16
Container 8aulageA is not 9orking out as e;pected due to lack of po9er on direct control the third part' ser>ice!s ?ualit'* 2.3.3 Current Logistics or !upply Chain ,roblems Tiong &am is -acing.
Tiong "am &ogistic 8olding Berhad is the largest tracking compan' in Mala'sia toda'* The' face the pro%lem %' their dri>er attitude< maintenances fee and also their transit s'stem* #a$ igh /aintenance Cost
Tiong "am has 2000 trucks* The trucks cost a fortune to maintain to ensure those are in a good condition not e>en on the logistic progress* Based on the inter>ie9< truck %reakdo9n happen 2 percent per month< 00 trucks ha>e to pa' for the maintenance cost in e>er' month* Bet9een the comparisons 9ith pre>ious 'ear< their maintenance cost increased %' 3M 000< from 3M .000 to 3M6.000* These costs include unscheduled repairs< pre>enti>e maintenance @4MA and tire* Compan' sends the trucks to maintenance on schedule* The trucks< deli>er in local place< pre>enti>e maintenance in e>er' months* $or those trucks deli>er to outstation ha>e to maintain in e>er' 2 month* 5ith the inflation of spare part< the maintenance fee 9ould onl' increase in follo9ing 'ear* #b$ +river 0ttitude
Truck dri>er attitude is one of the most misunderstood< and o>erlooked pro%lems facing the trucking industr'* Tiong "am has at least 2000 of dri>er* Bad attitude dri>er in 9orkplace not onl' is the pro%lem for 9hole compan' and also as a road killer* - case occurred in Singapore< a 9oman killed %' Tiong "am truck* The dri>er does not pa' attention to the road condition* 5hen traffic light turns green< he speed up the truck %ut he did not sa9 the 9oman 9alk in front of his truck* -s the result< the Singaporean 9oman 9as pronounced dead %' paramedics on the spot* (ri>er attitudes not onl' influence the on road condition and also in the 9hole logistic suppl' chain* (ri>ers do not %e ha>ing responsi%ilities* 4roduct damage is happened in Tiong "am 9hen deli>er'* -ccording to the information< e>er' 1000 of product 9ould ha>e of it is damaged* The staff in the office< failed to understand dri>er direction and cannot control 9ell of dri>er attitude* Some of dri>er a%sent 9ithout notice office staff or operational department manager* #>en though there has truck in compan' %ut lack of 17
dri>er to control it* Therefore< compan' has to done arrangement rapidl' to the pro%lem* The kind of dri>er attitude slo9 do9n speed of ser>ice e>en makes the product pending in the 9arehouse* )t causes customer dissatisfaction to the ser>ice* #c$ Transit !ystem
Tiong "am is using product transit s'stem* B' transit s'stem< the' 9aste more time on process* The other %ranches transfer product e>er'da' to Shah -lam for transit* 8o9e>er< the' store the product in 9arehouse< Shah -lam for 9aiting the arrangement of truck and regular check for the product ?uantit'* The' do not deli>er the product immediatel'* Based on the information< product deli>er to place as 9ent often like Melaka and Eohor Bahru< it stored among da's onl' started to transferring* $or the deli>er place 9hich 9ent occasionall'< the product store in 9arehouse among to da's* Since the product has to transit to Shah -lam so the 9arehouse ke' performance inde; is important* )f the ke' performance inde; is high< represent there are still ha>e man' product do not deli>er' to their customer* $or e;ample< products deli>er from 4enang to Terengganu %' using transit s'stem 9ill store in 9arehouse at Shah -lam* The' 9ould not transfer immediatel' %eca use the' onl' go to Terengganu for 2 times per 9eek* )f miss out on time< customer ma' 9ait for to da' to get the product* But< 9arehouse is limited and ke' performance inde; for good deli>er increase* The most important is their customers ha>e to 9ait for a long time* Transit is reducing cost %ut it cannot satisf' customer 9ant and also cannot attract those competitors! customer and potential customer* ther than that< the product had transfer to man' partiesD it 9ould raise the percentage of product damage* Transit s'stem is e;tent the production*
18
90 -trate7y Analysis
(ue to the pro%lem from multiple perspecti>es< the compan' should appl' the most appropriate strategies and find the %est 9a' to fulfill the demand* )t 9ould %e a >er' essential in tackling the pro%lems* nce< customer 9illing to dealing 9ith supplier or compan' 9hich means the' ha>e to take risk in anticipation deli>er'* This is a particularl' important in suppl' chain arrangements 9hen a customer has operating agreement 9ith a supplier* 8o9e>er< failure %' an' case or indi>idual to sho9s competence affects customer perceptions of the entire organi/ation* There are some of the strategies taken %' Tiong "am &ogistic Compan'* #a$ Communication
* .ommunication means keeping customer contact and inform* -s a transit agenc' customer ser>ices staff ha>e the responsi%ilit' tr'ing to persuade customer and o>ercome their situation< in order to sol>e transportation issues< such as addressing customer ?uestions< let customer kno9 their goods situation< letting customer kno9 9hat the' doing and ho9 long it might take* Communication is >er' important for a particularl' if pro%lems 9ith an' deli>er' occurred* The' mostl' communicate customer through phone call< te;t or e7mail them* )n the %usiness area< the compan' 9ill %e in>ol>ed in deli>ering communication and ensuring customers that feel credi%ilit' from supplier are %elie>a%le and honest* #b$ /aintenance cost
)n the o>erall holistic approach< the %asic elements of customer ser>ice in suppl' chain logistic operational performance emphasi/ed speed in deli>er' process< in order to impro>e competiti>e ad>antage %et9een competitors* ther9ise< the most challenge in suppl' chain logistic management sector is malfunction reco>er'* )t is a firm!s a%ilit' to ?uickl' implement contingenc' plans 9hen a failure occurs in the suppl' chain* 3egardless of ho9 fine7tuned a firm!s logistical operations< malfunctions 9ill occur* 8o9e>er< compan' has done the adustment that can %e implemented to pre>ent losses from profit and customer< Tiong "am has accommodated idea to pre>ent malfunction* Conse?uentl'< lots of customer complained this situation %efore< time deli>er'< the truck %reak do9n 9ill cause the 19
time dela'* Tiong "am Compan' 9hich allocate at 4enang 9as trade in the old truck and replace the ne9 truck to a>oid and minimi/ed do9n the maintenance cost* >erall malfunction pro%lem is 2 percent< the' alread' sol>ed a part of the pro%lem< no9 onl' 10 percent of malfunction pro%lem* #c$ +river’s attitude
To sol>e the %ad attitude of dri>er< or 9hat the compan' ma' do to minimi/e do9n the dri>er attitude pro%lem is to set up the (ri>er -dmin (epartment @(-(A in all Tiong "am outlet* (-( department 9ill handle the entire dri>er pro%lem* $or an e;ample< if the dri>ers 9ant to take lea>e< the' must inform da's earl' from the (-( department** -nother strategies has %een using %' them is the' ha>e set a rules and regulation that regarding< if the dri>er had stolen or damage customer!s good during the handling and transportation process< the dri>er 9ill %e fine him hea>il' as a punishment taken %' compan'< in order to impro>e responsi%ilit' of dri>ers and safet'*
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590 Recommendation #a$ +aily chec)ing
Tiong "am Compan' can minimi/e do9n the maintenance cost in future %' doing the dail' checking through a pre>enti>e maintenance program< and educate the Compan' dri>er* 4re>enti>e maintenance program is 9orth to in>est %' a logistics Compan'* Compan' can assign dri>er to do dail' checking for the truck!s component< such as the fuel pipe< tires< cooling s'stem< and electronic s'stem* )t can pre>ent the truck %reak do9n suddenl' that led to incur additional cost like repairment cost< especiall' for tires* - logistics Compan' ma' need to change the tire more often< to a>oid it< dri>er should check the alignment regularl'< so that the fuel can %e use efficienc' and pre>ent the tire 9ear out ?uietl'* Secondl'< Compan' ma' ha>e a training class to educate their dri>er< such as ho9 to use the fuel efficienc' to cut do9n the cost< re9ard as encourage those dri>ers to pro>ide the cost7sa>ing idea< and gi>ing a talk a%out concerning the safet' of truck* Compan' ma' de>elop a dri>er safet' program to reduce the percentage of accident* $or e;ample< the dri>er should slo9 do9n their speed 9hen the' are dri>ing the empt' truck< the' must take longer rest than dri>ers 9ho dri>ing the hea>ier truck< %ecause the tire for empt' truck is less friction 9ith the road surface* )n additional< the dri>er must take dou%le stopping distance 9hen the road is 9et or 9hen it is raining* This program is useful for Compan' to reduce the additional cost< %ecause dri>er ha>e more kno9ledge a%out dri>ing on the road and ho9 to do the dail' checking to pre>ent the truck %reak do9n suddenl'* The estimation of reduction in maintenance cost for Tiong "am Compan' 9ill continuall' to decrease %elo9 to 10K* )t is %ecause the Compan' can e;tend the duration of using the old truck and sa>e the maintenance cost %' using the ne9 truck* #c$ 0ttitude of driver
-ccording to the Tiong "am operational manager< the maor factor of the dri>er attitude pro%lem is the' are not satisfied 9ith the %enefit of the compan'* To reduce the dri>er attitude pro%lem< Compan' can pro>ide mo>e %enefit to their 21
dri>ers* $or e;ample< Compan' can gi>e a %asic salar' to their dri>ers 9ho alread' 9ork for the Compan' more than 'ears 9ith good performance* This could %e a guarantee for the dri>ersD it is %ecause there are not %asic salaries for dri>ers in the contract %et9een the Compan' and dri>ers* The salaries of those dri>ers are %ased on ho9 kilometer or ho9 far the' deli>er the goods* Compan' gi>e the dri>er 9ith %asic salar' can moti>ate them to take the responsi%ilit' as a dri>er and encourage them to perform 9ell* $urthermore< compan' also can pro>ide insurance to their dri>ers 9ith good attitudeD it is %ecause Tiong "am does not pro>ide the insurance for their dri>ers* )t is unfair for Tiong "am dri>ers compared 9ith other logistics Compan'* ther than that< the Compan' can increase the %onus of dri>ers 9ho alread' 9ork for the compan' more than 2 'ear as re9ard for their good performance* The criteria of good performance are punctualit'< do not incur an' accident %efore< do not get 9arning letter< deli>er good on time< and responsi%ilit' for their 9ork* This 9ill encourage and moti>ate them to 9ork hard and keep responsi%le for their 9ork* )t can satisf' their dri>er need< so that the dri>er 9ill not ha>e an' complaint a%out the Compan' and 9illing to 9ork for the Compan'* #c$ ,rovide direct delivery
Tiong "am Compan' can pro>ide direct deli>er' to their customersD so that it can shorten the process %' transit the goods from one location to another location* )t can help the customer and compan' to sa>e the 9arehouse cost and time< due to it can shorten do9n the process of transfer the goods to another outlet and ask for the outlet to send those goods to some location 9here the compan' did not go often* Sometime< the goods ma' place in the 5arehouse for fe9 da'sD this 9ill result 9here the customers 9ill %e late to recei>e those goods* $or an e;ample< if )poh 9ants to deli>er those goods to Terengganu 9here the' do not go often< %' transit< it ma' take around 7 da's due to those goods 9ill %e store in the 9arehouse* )f )poh deli>ers %' direct to their customer< the customer can recei>e those goods earlier around 76 da's* &o9er +e' 4erformance )nde; @+4)A means that those goods store in the Compan'!s 9arehouse can deli>er or settle faster* B' direct< the Compan' can lo9er do9n the +4)< it helps the Compan' to sa>e the 9arehouse space and rent it to other 22
customers or recei>ed more order form customers* Compan' can gain more profit %' using direct deli>er' s'stem* #>en though< this s'stem ma' increase the maintenance cost of truck< ho9e>er< %' direct deli>er' Compan' can charge higher from the customer< especiall' 9hen the goods are urgent for them< the' are 9illing to pa' for the higher price to accomplished the' 9ork* Therefore< it is ena%le to co>er the maintenance cost of the truck* Besides< it can also help the Compan' to 1reduce do9n the percentage of goods that ma' deli>er' in %ad condition to the customers*
23
90 .*/.)U-,*/
Tiong "am &ogistic 8oldings Berhad ma' meet se>eral challenges in suppl' chain and logistics management in future* $irst< Tiong "am might face difficulties due to the e;pand deli>er' ser>ice to e7 commerce companies ma' %e future challenges to Tiong "am* "o9ada's< consumers are %ecome more and more likel' to consume through internet that caused e7commerce %ecame more familiar* Therefore< the online retailer ma' send their goods through their o9n shipping compan' in future* $or e;ample< the electric and furniture compan'< Seng 8eng 9ill send products through Seng 8eng Shipping Sdn* Bhd* 9ithin ,. hours to their customers* Besides< e>en in China< the -li%a%a Group is snapping up the stakes in logistic companies to complement o>erall %usiness* Second< as the technolog' no9ada's keep updating in a rapid speed< so Tiong "am ma' face difficulties in impro>ing their technolog' infrastructure and e?uipment* This is %ecause of to impro>e their technolog' infrastructure and e?uipment< Tiong "am has to spend a lot of mone' and %' the same time the technolog' ma' depreciate >er' soon and %e replaced* )n order to spend for latest technolog'< Tiong "am can tr' to reduce the cost of updating the technolog' to sta' competence 9ith their competitors such as impro>ing their transport %' %u'ing more trucks and purchase or impro>e their 9arehouse management*
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Reference
5e%site >er>ie9*@n*d*A*Tiong "am &ogistics 8oldings* 3etrie>ed $e%rur' 16< 2016< from http:JJ999*tiongnam*comJLpageid,. 5e%site Strengths F 5eaknesses of the Suppl' Chain*@n*d*A*Chron*com* 3etrie>ed$e%rur' 22< 2016< from http:JJsmall%usiness*chron*comJstrengths79eaknesses7suppl'7 chain7.*html 5e%site Suppl' Chain and &ogistics Technolog': $our trends shaping mo%ilit'* @n*d*A* -rticle from
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http:JJ999*logisticsmgmt*comJarticleJsuppl'chainandlogisticstechnolog' fourtrendsshapingmo%ilit' 5e%site Tiong "am plans multi7store' 9arehouse and more automation 7 Business "e9s* @n*d*A*The
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