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PKT Logistic Group Sdn Bhd (PKT) is recognized by their customers for
their superior supply chain management processes that make their business
excel.
They offer their customers increased efficiency and reduced transit time,
thanks to their on-going focus on operations excellence and the visibility and control
that they created in the supply chain.
PKT Visions are Total logistics, Total control, Absolute Peace of mind. In
the 1990s, PKT vision was created along the concept of owning and extending
completeness of service in order to extend sterling customer service. They then
believe that we have the right mix of human resources, the right exposure and support
from our strong business partners and more importantly the right experience to make
this vision into a reality and make their mark amongst the ranks of international total
logistics players.
PKT aims to archive several visions in this few years. Firstly, is to have revenue
contribution ratio of 60:40 between Automotive and Non-Automotive segment. Non-
automotive will be driven primarily by FMCG. PKT targets to realize this objective
by the year 2013.Secondly, revenue contribution of 30% by other Asean countries
plus India, Korea and Taiwan by the year 2013. Thirdly, Warehouse ownership area
of 5 million sq-ft in Asia by the year 2015.and lastly, is to attain revenue target of
RM1 billion by the year.
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Logistics Services Capabilities of PKT Logistics Group
PKT using the L.E.A.N concept, which are consists of One Logistics Hub,
One Eastern Hub, One Auto Hub and One Northern Hub.
One Logistics Hub, which consists of The Ship, The Wave, The Lighthouse
and The Sea of Pineapples with over an area of over 27 acres of land, PKT has
budgeted RM160 million as investment in this logistics hub in order to fulfill
customer requirement and satisfaction.
One Eastern Hub, also known as The Glacier, One Eastern Hub, the 4th
generation warehouse will be located in Pahang, Malaysia. The Glacier is
conceptualized over a glacier center in New Zealand. Besides that, it will emerge as
the largest warehouse in the East Coast of Peninsular Malaysia with more than
400,000 sq. ft of space to cater the needs of logistics industry and upgrading
warehousing service complexity in the region and also is an ideal for cross-dock for
Eastern Corridor in East Coast Region.
For One Auto Hub and One Northern Hub, currently there are still in
negotiation process with respective parties. Hence, the are still in initial stage which is
still pre-mature.
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Resources- Technology and Physical of PKT Group Sdn Bhd
Together with the superb heat insulation thermo foil installed below the roof, the
indoor temperature for the warehouse is always much cooler than the outside
temperature during the day time. Timers are also installed in warehouse to switch
on/off lights at set timings aimed at reducing wastage. Light colour roof and wall
cladding reflect sunlight thus absorb less heat resulting in less air conditioning loading.
Low E glass introduced on some parts of the office block at The Ship reduces
the heat gain due to sun light. Interlocking paver used for the car park in front of the
office block at The Ship also releases less heat to the air comparing with the normal
tar mac or concrete surface.
GPS mounted onto vehicles to monitor drivers driving behavior and degree of
compliance to predetermined routes aimed at motivating the drivers in desired fuel
efficient driving behavior and utilization of efficient routes in reducing fuel
consumption and carbon emissions.
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iii) Radio Frequency (RF)
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Customers and Industry Focus of PKT Group Sdn Bhd
i) Automotive logistics
Being one the market leaders in the Malaysian automotive logistics industry,
they are widely recognized as the preferred regional logistics service provider for
automotive Principals, Franchisees, Distributors as well as Original Equipment
Manufacturers (OEMs). Besides, they also provide total logistic services leveraging
on their bargaining power with liners, comprehensive understanding on customs
brokering, expertise in warehousing and haulage/distribution and other ancillary
services.
Therefore, PKT understands the supply chain challenges faced by their FMCG
customers and they constantly strive to help deliver solutions by leveraging on their
extensive supply chain know how, availability of purpose made warehouses,
utilization of systems and technology and extensiveness of distribution network.
Moreover, their clients tend to enjoy faster time-to-market, higher order fulfilment
rates without incurring high start-up costs and greater economies of scale.
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iii) F&B logistics
Thus, PKT understands the supply chain challenges faced by their F&B
customers and they constantly strive to help deliver solutions by leveraging on our
extensive supply chain know how, availability of purpose made warehouses where
pest control is of top concern, utilization of systems and technology and extensiveness
of distribution network. In addition, their clients tend to enjoy faster time-to-market,
higher order fulfilment rates without incurring high start-up costs and greater
economies of scale.
In fact, the Renewable Energy Logistics is among the most complex sector due
to the high volumes of heavy-lift and project cargo, increasing competition, thinning
profit margins and commoditization of components. So, PKT is an emerging
renewable energy logistics service provider by extending efficient and sustainable
supply chain solutions to manufacturers, importers and turnkey contractors from
consultancy on plant setting up related permits and application of various tax
incentives till project related logistics for the construction and commissioning phase
of developments whichever relevant.
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Innovation in Logistics in Term of Business Process and technological
i) Trans-Rak Technology
Trans Rak is a simple frame which is built into 20ft, 40ft, 45ft, 53ft and pallet wide
ISO containers. It is also a retractable transport system which can be fitted inside any
shipping container enabling the transport of 4 or more cars, and then raised into the
roof space, to allow the clear loading of general cargo. Moreover, 4 large passenger
cars can be loaded quickly and securely. When not loaded with vehicles the Trans
Raks are raised into the roof of the container enabling general cargo to be shipped.
Since the revolution of technology, there is a need to invest in the latest technology
not only for business growth, but also because today's employees demand it.
Moreover, today's Gen-Y employees are good at adapting to technology. Therefore,
PKT transformed their workplace by incorporating ICT (information and
communications technology) elements into their operations. Besides, the company has
also made it compulsory for all of its employees to have a Facebook (FB) account to
improve the interaction between the employees and the upper management.
The eSCM facilitates seamless flow of information that is crucial in further enhancing
the efficiency of supply chain activities. Through the implementation of eSCM, PKT
repositions away from the costly and limitative repetitive data entry approach to a
new integrated process that can dramatically improve the efficiency of supply chain
operations while still maintain the customization and flexibility that the customers
demand.
SyteLine Acconting System enables PKT in streamlining its financial processes and
reduces costs, increasing in accuracy and timeliness of financial data besides
providing better accountability of expenses and cash flow etc. Besides, it integrates
with product data management functionality to facilitate and support our design
processes, multimedia attachment capabilities, integration of workflows and other
inquires.
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Part 2 Exel PLC UK
During the years that followed, Exel experienced robust customer growth and
expanded operations to include Canada and Latin America. Its portfolio of solutions
also grew to include transportation management, freight consolidation, contract
packaging, contract manufacturing, demand planning, and other supply chain services.
In late 2005, Exel was acquired by Deutsche Post DHL, creating the world's
leading provider of contract logistics, global air freight, and global ocean freight
services. The new contract logistics business was branded DHL Supply Chain and
provides integrated supply chain solutions around the world. The contract logistics
business in North America operates under the Exel brand, with the headquarters for
the Americas region remaining in Westerville.
Exel operates under a simple, but powerful, set of shared values that support
their corporate mission. Their mission is to make the most of its scale, experience and
passion to build global leadership in logistics, and to become the first choice for
customers and associates.
They are several values that always emphasize in their corporation which is to
deliver excellent quality, to make our customers more successful, to foster openness,
to act according to clear priorities, to act in an entrepreneurial way, to act with
integrity, internally and externally, to accept social responsibilities.
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Logistics Services Capabilities of Exel Plc UK
There are many logistics service capabilities in this company:
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In-Plant Services
Labor management
Packaging, blending, and kitting
Supplies management
Railcar switching and cleaning
Inventory management
Yard management
Plant-based distribution center operations
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Transportation Management Services
Network design and optimization
Carrier sourcing and compliance management
Transportation planning and optimization
Order consolidation services
Dedicated transportation
Freight bill audit and payment
Claims administration
Exel Transportation Management Services
Visibility and shipment event tracking
Performance management and reporting
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Exel PLC UKs Resources - Technology and Physical
i. Warehousing
Exel provides a full range of warehousing capabilities designed for the utilities,
power generation, and alternative energies Industry from receipt to item
customization and dispatch.
They always helps customers to examine their warehouse strategies, and offer
solutions to make them more efficient, free up premium on-site real estate, or find
additional warehouse locations so the client can maximize the productivity levels of
their highly skilled teams.
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Exel PLC UKs Customer
Novartis, a leading global pharmaceutical manufacturer
United Supermarkets wholesale, a regional supermarket grocery store chain
DuPont Building Innovations, focus on dynamic science to discover and
develop innovative new products and integrated systems and services
Sun Microsystems, evolved several key computing technologies
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Innovation in logistics in term of business process and technological of
Exel Plc UK
Exel is deploying green projects with a reliable network to ensure the customers can
get important materials to their field engineers or meter installers when and where
they need them. By eliminating the need to travel to a central warehouse for supplies,
they can focus on the task at hand, and increase productivity drastically. Ehelped
companies save millions by working with them to increase engineer utilization and
transfer activities to lower cost resources.
With their engineering response model, Exel manages the materials supply chain from
works planning and inbound goods through on-site works, delivering stock to
engineers and other workers in the field. All activities other than the core engineering
functions are managed and co-coordinated by us through a central control tower
function. They also manage the reverse flows of plant and material, which can include
waste and decommissioned assets.
Good design is at the heart of an effective supply chain solution. Exel develops
innovative solutions that streamline operations and improve control. Their supply
chain diagnostic activities identify the possibilities; and Exels experienced
consultants recommend the changes that deliver the most value.
The result is an optimized supply chain with reduced capital assets when there are
fewer steps in the process, there are less physical materials and locations to manage.
They also analyze and improve business processes across operations and show the
customer how to manage people and projects in a way that minimizes the impact of
change on an organization.
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Comparative analysis between two LSPs
Exel is part of the SUPPLY CHAIN division of Deutsche Post DHL, the
world's leading logistics group, with annual revenues of more than 55 billion euros.
Deutsche Post DHL is the parent company of DHL, the global leader in international
express, overland transport, and air freight. Becoming part of the global DHL Supply
Chain and sister company to DHL Express allowing them to add more value to their
customers' supply chain management solutions in the Americas and around the world.
While PKT which formerly known as Port Klang Trading was establish in
year 1974 and moved to new headquarter in year 2010 and aimed to serve its
customers in one logistics hub.
In terms of global supply chain management, both are using different of global
service strategy, PKT are using global strategy, which is its service focus are only
local market customization and its management strategy are mainly decentralized
operations with local profit responsibility. While the Exel Plc UK are using
transnational strategy. Its service focus is mainly focus on global branding and
integrated operations and its management strategy centralized planning in global sites.
This is because Exel is sister company to DHL express and both company had
integrated their capabilities in order to reduce cost.
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Next, Exel Plc UK has always practice Supply Chain Operations Reference
Model (SCOR Model) in their daily operation, which is Plan, Produce, and Store &
customized, Move, and lastly is Return. Although PKT also practicing it either, but
for return process, PKT still need improvement for increasing its efficiency in reverse
logistics. This is because the reverse logistics in Malaysia are still in developing stage.
For Exel Plc UK, it will help the customers to design, plan, and implement a reverse
supply chain that supports its customers profit goals and provides them the maximum
value for their assets. Exel bring to reverse logistics the exacting management,
resources, and technology required to increase control and asset recovery, improve
information management, and save administrative time.
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Group Opinion for Malaysian LSPs to be globalized
Booming world trade has fostered longer and more complex supply chains,
which in turn has created a pressing need for better logistics in all corners of the world.
In our group opinion, the global players will continue to concentrate in the near future.
Thus, there are three important trends are driving this path to fewer and larger global
3PLs.
First, the world's largest manufacturers and retailers have solidly adopted the
logistics outsourcing concept, and they prefer to do business with other larger
companies, including their 3PLs. Second, while more and more manufacturing,
sourcing and other supply chain activities are happening in places like China, India,
Latin America and other emerging markets, required logistics capabilities often do not
yet exist in these regions. The Global 1000 companies operating in these markets
want global logistics providers that can expand operations wherever they are needed
and move from region to region as manufacturing sources change. Third, in order to
quickly grow in size, capability and geographic reach, global 3PLs must expand by
acquisition. The big 3Pls that intend to be among the handful of truly global players
are under great pressure to eat or be eaten by their competition.
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Nowadays, Malaysia Logistics industry is concentrating on the outsourcing of
logistics activities and growth of 3rd Party Logistics (3PL). However, the issue of cost
appears to be the utmost important factor in the growth of 3PL where greater
emphasis is placed on reducing cost and delivery lead time. In addition, Malaysia
3PLs are more focus on the domestic operation only and it should expanding their
footprint to international. Thus, in order to attract the investment capital, Malaysia
3PL industry must grow profitable enough.
In conclusion, there are a lot of effort that local logistics service provider need
to concern and also benchmark from overseas in terms of logistics software and
solution available in overseas, to ensure our Malaysian logistics service provider have
ability to compete with other LSPs in other country.
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References
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