CENTER OF GRADUATE STUDIES

NATIONAL DEFENCE UNIVERSITY OF MALAYSIA

SUNGAI BESI CAMP
57000 KUALA LUMPUR

INDIVIDUAL ASSIGNMENT
___________________________________________________________________

MODULE : SUPPLY CHAIN & LOGISTICS MANAGEMENT

CODE : DMS 4013
___________________________________________________________________

PROGRAM : MBA (SUPPLY CHAIN & LOGISTICS)

DATE : 26 APRIL 2019

Student Name : WAN MOHD AKRAM BIN HJ SAIDON

Matric No. : 3191174 Total Pages of Answer :

Signature : Lecturer : Prof Madya Rozita bt Husain

INDIVIDUAL ASSIGNMENT:

Study the attached case study thoroughly. Based on the given case study the conclusion
made by the writers are as below:

1. Many quantum changes are taking place in business environment with complexities
involved in sustaining, surviving & succeeding. The supply chain management (SCM)
helps to develop the speedy, cost efficient and reliable supply chain.
2. Performance measurement of SCM is essential as products need to be produced
as per customer demand cycle to achieve customer satisfaction. SCM has a tremendous
impact on the way manufacturing industries are developing in recent time.
3. Very few industries are employing SCM as efficiently as it should be, and lot of
work needs to be done in SCM in India.

QUESTIONS & ANSWERS:

Q1. Do you think Malaysia has faced the same situation as faced by India?

Yes, I think that Malaysia has faced the same situation as India. According to
(Intelligence, Establishment, Due, & Accounting, n.d.), investment into India’s supply
chain infrastructure is gaining momentum. The introduction of the Goods and Services
Tax (GST), liberalizing foreign direct investment (FDI) rules, and increased government
spending has helped spur growth in the sector.
India’s aspiration to become a global manufacturing powerhouse and the
government spotlight on ‘Make in India’ also compels nationwide supply chain reform,
prompting several federal and state-based schemes and investment incentives.
In this article, we discuss India’s supply chain ecosystem and emergence of new business
opportunities. We also highlight how both government entities and private ventures are
seeking to introduce critical efficiencies to transform the state of business as usual.

India’s supply chain network – Growing regional integration, investor confidence

The supply chain industry has a cascading impact on almost all aspects of trade
and retail. As India opens its economy further, financing the improvement of this linkage
sector is vital for business growth. A modernized and efficient supply chain improves the
ease of doing business, scales down the costs of manufacturing, and accelerates rural
and urban consumption growth due to better market access.

Until recently, infrastructural woes had a crippling effect on the supply chain
network in India. Suppliers, manufacturers, and retailers had to factor in delays in the
movement of goods between state borders due to complicated taxes and transport lines
running over capacity, increasing overall costs. With the new reforms coming into play,
a gradual resolution of these problems seems imminent.

In the last three years, India’s supply chain sector has seen an influx of capital,
both foreign and domestic. Firms like Future Supply Solutions have raised almost US$2
billion (Rs 130 billion) in investments from domestic and foreign channels. The French
firm, FM Logistics, recently acquired Pune-based Spearhead Logistics, investing over
US$8 million (Rs 500 million) with further plans to invest US$46 million (Rs 3 billion) to
set up warehouses all over India.

The Delhi-Mumbai Industrial Corridor and Development Corporation (DMICDC)

has awarded companies over US$2.3 billion (Rs 150 billion) in contracts for the
development of multimodal logistics hubs in Maharashtra, Gujarat, and the National
Capital Region (NCR). They are in the process of granting another US$1.5 billion (Rs 102
billion) in contract packages for construction of the same in the states of Uttar Pradesh
and Haryana.
The proposed hubs in Maharashtra, Gujarat, and the NCR will provide end-to-end
supply chain services, such as small processing facilities (grading and packaging) and
final delivery and transport services. Plans to improve regional connectivity through road,
rail, and inland waterways are already ongoing. In fact, India’s 2018 budget saw the
highest fiscal allocation for infrastructure spend, at about US$95 billion (Rs 6 trillion).

Meanwhile at Malaysia, also has a cascading current progress of SCM with some
issues to be improvised. According to (Ali, Jaafar, & Mohamad, 2008), despite the
potential growth of the industry, the Malaysian industry players have identified various
issues resulting from the fragmented development of the logistics and supply chain
practices as well as the uncoordinated implementation of its regulation. The issues of
logistics and supply chain are :

a. Lack of follow up actions and coordination. While there have been

numerous meetings and discussions on issues raised, monitoring and follow up
actions have been lacking in rectifying the situations. Issues involving one sector
have not been looked into in total as to how it will affect other sectors. Thus the
information gained could not be shared by other parties in the industry. This could
be mainly because of the inexistence of local branches especially at the important
corridors throughout the country, for example the Northern and Southern area
(Thong, 2007). This is crucial for the newly set up MLC in allowing any coordination
actions to be taken.

b. Lack of sophisticated management techniques among the supply chain

companies. The rapid development of the industry and the lack of emphasis on
service excellence have consequently given rise to the need for more sophisticated
management of the supply chain companies. This is a challenging task for the
companies to acquire sophisticated management and marketing knowledge as
well as implementing them in bringing the Malaysian logistics industry upfront
(MIMA, 2008; MIMA, 2004).
c. The problems with Information Technology (IT)/Electronic Data
Interchange (EDI). The government has made significant progress toward its
vision in integrating the industry players towards establishing a fully paperless
custom clearance and trade facilitation through EDI. However, problems still arise
with regard to the (1) costly EDI pricing and charges due to in transparent mark-
ups by the freight forwarders, and (2) overall performance and functionality of the
system (MIMA, 2008; MIMA, 2004; Anonymous, 2003). It is important to strengthen
the linkages and integration among the transport and logistics networks at
promoting an efficient logistics practice and development through the
establishment of e-logistics.

d. Lack of skilled and trained manpower. Both the Northern and Southern
Freight Forwarder Associations highlighted that the existing carriers do not have
appropriate experiences and skills in introducing the new services and bringing
innovative solutions to the higher-end clients (MIMA, 2008; Thong, 2007; MIMA,
2004). As indicated by the forwarding agent:
“The forwarding agent operators normally do not have basic training in
logistics, but only from their experience. Therefore they are not pro-active in
providing solutions to the clients”

e. Lack of research and development (R & D) of the industry. Although both

the practitioners and the academics are increasingly aware of the importance of
logistics and supply chain in Malaysia, however the field is still under research. It
is important to prioritize research and development so that various weaknesses in
the industry could be identified and improved. For example, one of the informants
(Logistics Officer) indicated that “the lack of Key Performance Indicators in the
semiconductor industry has caused a lot of problem in the manufacturing process
as well as meeting customer satisfaction”. The R & D Centre could also become
the focal point for advanced research in the field of logistics, supply chain and
transportation management.
.
f. Lack of regulatory forms to facilitate the industry. A unified and standard
form of regulatory implementation is still lacking resulting to various loopholes
throughout the process. Therefore, a comprehensive approach in standardizing
 the regulatory forms is vital as to facilitate the smooth movement of freight through
national and international logistic chains (MIMA, 2008; Anonymous, 2003).

Therefore, by observation of current situation between Malaysia and India, there

are a few similarity such as lacking of follow up actions, coordination and lacking of
Research & Design (R & D) of the industry to be enhanced.

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Q2. Discuss the performance measurement of SC that required to be produced

in your organization to achieve customer satisfaction.

Initially, it is better if we could identify who is the customer empirically in supply

chain study. Concisely, customer is the beneficiary of supply chain or operation.
Customer is divided by 2 types which are:
a. Internal customer.
b. External customer.

One of the performance measurement of SC that required to be produced in our

organization is a Customer Collaboration. Customer collaboration involves the receiving
demand signals and automatically replenishing the customer’s inventory based upon
actual demand. Apart of that, one of the measurement categories is about Quality. The
quality elements definitely measuring of customer satisfaction, processing and fulfillment
accuracy, including on-time, complete and damage free order delivery as well as accurate
invoicing. Also includes planning (including forecasting) and scheduling accuracy.
In conjunction with that, one of the measurement method that can be used is the
Balance Scorecard. Balanced scorecard approach to the supply chain, one needs to
consider it from four different perspectives:

a. Customer perspective : How do customers see us?

b. Internal business perspective : What must we excel at?

 c. Financial perspective : How do we look to shareholders?

d. Innovation and learning perspective : Can we continue to improve and create

value?

The diagram of the Balance Scorecard Approach is depicted as follows ;

Diagram 1. Balance Scorecard Approach.

Moreover, in order to achieve customer satisfaction, we shall have to understand

of customer requirements which consist of :

a. Manufacturing has luxury of homogeneity. Allows efficiency and scale.

b. Services depend on customer resources. Creates heterogeneity and unique

challenges.

c. Services track production requirements differently. Must account at item

level and need information from Customer Relationship Management (CRM) and
Customer Relationship Management System (CRMS).
 Furthermore, in order to achieve customer satisfaction, we shall provide an
Excellent Customer Service which are :

a. Understand and meet customer expectations.

b. Provide fail-safe services (poka yokes).
c. Provide service guarantees.
d. Measure performance relative to expectations.
e. Manage customer complaints.
f. Recover from service failures.

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Q3. Do you agree that few industries are employing SCM as efficiently as it
should be, and lot of work needs to be done in SCM in Malaysia? Discuss your
opinion.

Yes. I do agree that a few industries are employing SCM as efficiently as it should
be. However, it is much better if all the industries are employing SCM efficiently well in
order to enhance, improvise and keep maintain our economics, provide better life for
Malaysia’s peoples and eventually standing along with other regional or international
countries all over the world. On top of that, there are a lot of work needs to be done in
Supply Chain Management particularly in our beloved country, Malaysia.

According to (Ali et al., 2008), the Council of Supply Chain Management

Professional (CSCMP) defined supply chain management as “encompasses the planning
and management of all activities involved in sourcing and procurement, conversion and
all logistics management activities. Importantly, it also includes coordination and
collaboration with channel partners, which can be suppliers, intermediaries, third-party
service providers, and customers. In essence, supply chain management integrates
supply and demand management within and across companies”.

Before we discuss any opinion for further, all the shortages of SCM in Malaysia
should be identified in order to improve and enhance the skills and capacity in manage of
the supply chain as well. According to (Ali et al., 2008), the Malaysian industry players
have identified various issues resulting from the fragmented development of the logistics
and supply chain practices as well as the uncoordinated implementation of its regulation.
The issues, among others are:

a. Lack of follow up actions and coordination.

While there have been numerous meetings and discussions on issues raised,
monitoring and follow up actions have been lacking in rectifying the situations.
Issues involving one sector have not been looked into in total as to how it will affect
other sectors. Thus the information gained could not be shared by other parties in
the industry. This could be mainly because of the inexistence of local branches
especially at the important corridors throughout the country, for example the
Northern and Southern area (Thong, 2007). This is crucial for the newly set up
MLC in allowing any coordination actions to be taken.

b. Lack of dissemination of information with regard to the development and

expansion of the logistics industry.
The activities of various sectors have not been made known to all sectors
and thus hindered the possibilities of joint-venture and working together towards
the same direction. (e.g. as to how their services and facilities can be channelled
towards the success of the proposed development and contribute towards positive
participation). It is important because through the information obtained, the
practitioners can then suggest on how they can participate in the new business
opportunities (Thong, 2007).

c. Lack of research and development (R & D) of the industry.

Although both the practitioners and the academics are increasingly aware of
the importance of logistics and supply chain in Malaysia, however the field is still
under research. It is important to prioritize research and development so that
various weaknesses in the industry could be identified and improved. For example,
one of the informants (Logistics Officer) indicated that “the lack of Key
Performance Indicators in the semiconductor industry has caused a lot of problem
in the manufacturing process as well as meeting customer satisfaction”. The R &
D Centre could also become the focal point for advanced research in the field of
logistics, supply chain and transportation management.
 The issues that had been listed above were occurred in Malaysia’s SCM. It might
be mitigated or prevented by enhance our skills and capacity in management with
implementing a correct manners starting from the bottom (basis), such as the diagram
follows ;

Implementing Deming’s 14
Recommendation to points of Management and
Improvise PDCA Cycle
Performance of
Malaysia’s SCM

Implementing Basis 5S of
Workplace Organization
Systems

Diagram 2. Recommendation to Improvise Performance of SCM in Malaysia.

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References

Ali, R. M., Jaafar, H. S., & Mohamad, S. (2008). Logistics and Supply Chain in Malaysia:
Issues and Challenges Interorganisational Relationships View project Halal supply
chain View project. EASTS International Symposium on Sustainable Transportation
Incorporating Malaysian Universities Transport Research Forum Conference 2008
(MUTRFC08), 2008(September 2008), 1–11. Retrieved from www.cscmp.org

Intelligence, B., Establishment, C., Due, S., & Accounting, D. (n.d.). Your Partner for
Growth in Asia.