TERMINAL LOCATION

When you are getting involved in the supply chain industry which required you to send the commodities to the other place or provide service at the other place, you are frequently need the terminal to drop by in the middle of your journey. What is terminal? For the people involved in this industry, terminal is being very familiar to them but not for the public. Actually terminal can be considered as the place to drop by to complete the service or the items. There are the terminal for pickup and delivery, release terminal, break-bulk terminal and others. Terminal plays an important role in our industry, so the location of the terminal must be suitable. What are the factors in choosing the right terminal’s location?

The first one is the terminal must be situated in the center of the cities or the place that become the point of view of people. It is because it will be near to the market, supplier and also the customer. This is quite important as it will make the transaction becomes easier. The suitable locations will give the benefits for both of the parties which is the seller and the buyer. It means that the supplier can deliver the goods on time as the terminal located near to them and it will increasing the efficiency of the product flow and the customer can receive the goods easily which at the same time increasing the customer satisfaction. For example, we are locating the main terminal which focused on the pickup and delivery activity in the center of Johor Bahru. Both customer and supplier from district of Johor and Singapore can easily pick and deliver the shipment.

The second factor in choosing the location for the terminal is locating the terminal at the place which having complete infrastructure, complete infrastructure here means they are having the road, highway, customs place, warehouse, petrol station and also distribution center. It is also the advantage if we are locating the terminal near to the ports or airports. When there is the infrastructure near to the terminal, it will become more efficient to manage the transaction activity. Just imaging you are conducting a transaction at the terminal where there are no infrastructures at all such as bank, the customs place or even no petrol station. It’s gonna be hard to manage all the documents causing more additional time requirements to handle the shipment and at the same time, it will automatically increasing the cost.

The last factors in choosing the best location for the terminal is the accessibility. Accessibility means that you can connect to almost any geographical area. Activity of receiving and delivery will be hard if the terminal is located at the urban or rural area as not all the people can access to the place. For example, you are locating the terminal at one of the islands in Sabah, it’s gonna be weird as people need to across over the sea to reach to the terminal, increasing the time and cost of completing the service and the shipment.

As the conclusion, it is important to make the best decision in choosing the best location for the terminal as it will give the big effect towards many parties involved in the industry.

Read More

SUSTAINABLE TRANSPORTATION FUTURE

Every single thing in this world is moving with transportation. Even the foods that you are eating are being move by transportation. You are moving to school, office, college or anywhere, its all using the transportation. It can be said that this world are being moved by transportation. Today, millions of transportation is moving everyday around the world causing many problems towards the people, communities and of course the bad one is towards the environment. This occurs because of our unsustainable transportation system. So, all the parties involved should paid a fully attention towards the issue in order to keep the sustainable transportation in the future.

The first one is in term of environment. The unsustainable transportation system today is bringing up the unbalance environment towards the people. Talking about the air environment, most of us will think about the cars or other transport as the main reason that lead to the causing of air pollution. The increasing of the carbon dioxide causing the ozone layer become more thin is one of the dangerous thing of unstable transportation system. There are the ways to keep the environment at the same time to make sure there is the sustainable transportation in the future. The first one is by asking the public to practice using a car pool. Why not you are being in the same car with your friends who are going on the same direction instead of driving different car which can causing the number of vehicle on the road become more increased and will lead to the traffic congestion. Besides, you are also should use public transportation or using bicycle if you are going to the near destination. This can help to save our mother earth for our future generation.

In the view of economy, we can see that the transportation had changed the world. As we can see, over the past year ago, people just walking to move from one place to another and there is not even any development occurs during that time causing no economy benefits towards the country. Transportation are really changed the world today. People or anything gets to move with transportation. Road, highway, railway, airports and ports are the thing that built up because of there is the transportation. With transportation today, the economy is moving fastest from day to day. This must be kept moving until the future in order to keep this sustainable transportation for our next generations.

Social equity is also the thing that we must consider in our way to keep the best sustainable transportation in the future. Most of people need transportation in order to manage their life such as going to work and for their personnel matters. Mostly today, people are having their own transportation. It can provide a quality of standard living. In future, more people will need transportation in their life. It can be consider as the necessity one. The number of people getting more increased from day to day and this had allowed to the more requirement of using the transportation. And this becomes one of the reasons of the important of having the transportation in the future. Besides, the government should provide a facility for cycling activities. This can increase a social relationship among the public.

To keep the sustainable transportation in the future, we need to keep our green environment. People may ask on how to keep our environment green? One of the ways is by change our transportation for example we should move to use hybrid car instead of using car that use diesel or petroleum. This can reduce the quantity of carbon dioxide that caused more pollution and at the same time it can help in reducing the user of diesel and petroleum. We can also use the electric busses. This is not only help in reducing the pollution but it also opens the wide user of another renewable energy such as solar energy. This can totally help in maintaining a sustainable transportation system in the future.

Read More

DABBAWALA AND THE LUNCH BOX

In 1890, Mahadeo Havaji Bachche started a lunch delivery service with about a hundred men.In 1930, he informally attempted to unionize the dabbawallas. Later, a charitable trust was registered in 1956 under the name of Nutan Mumbai Tiffin Box Suppliers Trust. The commercial arm of this trust was registered in 1968 as Mumbai Tiffin Box Supplier's Association. The current president of the association is Raghunath Medge.This an information about a service known as Dabbawala,most commonly in Mumbai, who is part of a delivery system that collects hot food in lunch boxes from the residences of workers in the late morning, delivers the lunches to the workplace utilizing various modes of transport, predominantly bicycles and the rail trains, and returns the empty boxes back to the customer's residence that afternoon. They are also made use of by prominent meal suppliers in Mumbai where they ferry ready, cooked meals from central kitchens to the customers and back.

SUPPLY CHAIN

The supply chain process start with collecting dabbawala, usually on bicycle, collects dabbas either from a worker's home or from the dabba makers. As many of the carriers are illiterate, the dabbas have some sort of distinguishing mark on them, such as a colour or group of symbols.

The dabbawala then takes them to a designated sorting place, where he and other collecting dabbawalas sort and sometimes bundlethe lunch boxes into groups. The grouped boxes are put in the coaches of trains, with markings to identify the destination of the box (usually there is a designated car for the boxes). The markings include the railway station to unload the boxes and the destination building delivery address.At each station, boxes are handed over to a local dabbawala, who delivers them. The empty boxes are collected after lunch or the next day and sent back to the respective houses.

CODING SYSTEM

Next is about Coding their package. Lunch boxes are usually marked in several ways: (1) abbreviations for collection points, (2) colour code for starting station, (3) number for destination station and (4) markings for handling dabbawala at destination, building and floor.[4]A typical dabbawala lunch.It was estimated in 2007 that the dabbawala industry was still growing by 5-10% per annum.The dabbawalas have started to embrace technology, and now allow for delivery requests through SMS.A colour-coding system identifies the destination and recipient. Each dabbawala is required to contribute a minimum capital in kind, in the form of two bicycles, a wooden crate for the tiffins, white cotton kurta-pyjamas, and the white Gandhi cap (topi). Each month there is a division of the earnings of each unit.

SIX-SIGMA

Forbes never certified the dabbawalas as being a six-sigma organization. In fact, I never used the term at all. As you know, six-sigma is a process, not a statistic. But it is commonly associated with a statistic of 3.4 errors per million operations, and that is what caused the confusion.The efficiency and complexity of the process by which some 175,000 tiffin boxes were sorted, transported, delivered and returned each day by people who were mostly illiterate and unsophisticated.Question to the head of the organization how often they made a mistake. He said almost never, maybe once every two months. Any more than that would be unforgivable to customers.One mistake in 8 million deliveries, since the tiffin carriers are returned home each day.

Read More

" DRIVE LESS,SAVE MORE "

Did you ever sick of getting stuck in the middle of traffic jam? Getting late to office? This is the real situation or scene that you will face when you are driving your car in the middle of metropolitan city just like Kuala Lumpur. “Drive less, Save more!”. This is one of the thing that you should practice in order to save many things and at the same time earn all of benefits from it. Drive less means we are minimizing the uses of transportation in our daily routine. On the other hand, save more brings the concept where we will save everything just like saving money, time, and energy once we are minimizing the uses of transport.

In general perspectives, all of public especially those who living in the middle of big city should practice this type of concept “Drive less, Save more”. This is because of several reasons. One of it is this concept will totally help them in order to save their money, time, energy and even will help to save our environment. How to practice this kind of concept? Actually most of people nowdays already practicing this concept for example most of public are using public transportation likes train and buses. This will totally help them to reach destination smoothly without need to face with the congestion. Some of them are also practicing carpooling especially for those who are working in the same or near to their office by moving together. Easy right? With this, you are gonna save everything!

While in the logistics view, this “Drive less, Save more” concept should be practice by all the company involving in this chain. This concept could be achived once the company implement the consolidation or economy of scale. Consolidation is when you are consolidate all the small shipment into the large shipments and deliver it at the same time. This will totally decrease the uses of transportation during the shipments. While in logistics, transportation cost is the biggest and highest cost that involved in this chain. Then you can totally save it through implementing the concept of “Drive less, Save more”. At the same time your customer satisfaction will be increase!. Besides, you also can practice economy of scale in order to achieve the target of your company to minimize the transportation cost. Economy of scale is when you are delivering the shipment in bulk quantity so the will less re-ship the goods as it will causing high transportation cost.

In conclusion, we as the public or the person involving in the supply chain industry should practice “Drive less, Save more” concept as it will bring up many benefits towards us. Remember, “DRIVE LESS, SAVE MORE “!. You’re gonna feel the real journey!

Read More

Air Asia The Legend Story

‘’ If you sit up in your ivory tower and just look at financial reports, you’re going to make some big mistakes‘’

                                                                                    Tony Fernandez, CEO

Ever heard about the story of this great guy? Yup, he is Mr. Tony Fernandez, a guy who had just created a great art up in the Malaysia’s airlines industry. Mr. Fernandez had started his career in the music industry but once the music industry failed to adapt quickly to the internet, Tony Fernandez deeded to make a clean break. He left his job to pursue a childhood dream which is to set up an Asia’s first low cost airline. Mr. Fernandez bought Air Asia from a Malaysian government owned company in September 2001. Mr. Fernandez running the airlines business with zero knowledge, he had no experience of running an airlines at all. Coming into a big industry with good art and strategy of business, Air Asia had grew up from 2 planes in 2002 to a fleet of 86 aircraft flying 30 million of people around the world. After the success of Air Asia’s short-haul flights, he then expanded had created two separate companies which one will focus on low cost short-haul flights while another one focusing on long-haul routes. Managing two different companies with different management could bring a big problem to others but not to Mr. Fernandez. ‘’ We have 2 separate sets of crew, two separate sets of pilots and engineers. So, it’s a very different culture but they’re symbiotic without being parasitic and being on top of each other ‘’, he explain.

These two airlines however utilize similar modes operand which is efficiency is the key to keep up with demand and ensuring a profit. We used to heard that customer always comes first or customer always right at any comp or org out there but not for Mr. Fernandez. He always is practicing the concept of ‘’ employees before customers ‘’. He used to say that, ‘’ employees comes number one, customers come no. 2. If you have a happy workforce, they’ll look after your customers anyway’’. This is the great view of this brilliant guy.

            Air Asia also moves one step front by involving in air cargo industry. It’s not quite a norm usually that low cost carrier (LCC) to have a dedicated cargo business but Air Asia has done it with great success. While belly cargo operation is not fresh anymore in this sector since MAS Cargo also conducts this industry. Air Asia has done it in great success and this can be seen from the TV numbers that latter has experience in terms of revenue and growth. The vast network that both Air Asia and Air Asia X covers as well as the numbers of aircraft that the comp holds right now is also the factors that lead to the successful of Air Asia Cargo. The A320 airline has about 2.5 tons of cargo capacity while the larger A330 has about 10 tons of capacity.

            Normally, LCC has minimal turnaround time of just 25 minutes but amazingly, Air Asia has managed to come up with 22 min of turnaround time for cargo handling into and out of its aircraft compared to the usual 45 to 60 min in other airlines. Extra points should be given to Air Asia team for manage to reduce their delay of fights due to cargo handling from 1% to 0.03% and incidents with regards to cargoes have also been reduced to just 2 cases per month.

            Throughout 3 years of operation, Air Asia Cargo Division has won awards for its outstanding achievement. It is only LCC and airlines that has won World’s Best Customer Care Awards by Air Cargo week. Perhaps this is due to this that Apple has given Air Asia X the honor of transporting the 1^st batch of Ipad 2 deliveries from its China’s Chengdu plant to Nagoya, Japan and Sydney, Australia.

‘’Hand your cargo with a smile. Let us take the load off you.’’

                                                                   Air Asia Cargo.

            Air Asia is really a great company airlines airline that create a creative and innovative ways of conducting business even you’re coming into industry with zero knowledge, but once you worked for it then you gonna feel it.

Read More

Characteristics of road freight

Transportation is very important and consider as a primary activities in logistic. In order to smooth the operation of logistics, we need to manage the transportation wisely. There are five modes of transportation that we can choose as a carrier and shipper to deliver the shipment. We need to choose right modes so that it can cut our expenditure. Each mode has advantages and characteristics that can help in order to make evaluation and select the right modes.

The characteristics of road freight are firstly can accessible to anywhere. With development of highways, road freight has potential to access to almost every destination. It can pick up or delivery the shipment without constrains by waterways, rail track, and airport location. Because of this, road transportation can provide bridge between pickup and delivery destination. Besides, with road transportation the shipment can deliver to airport or port to next destination.

Secondly, road freight speeds. Is true that the air freight is more faster than road but the fixed schedules of  air mode and need to wait before can ship make the total transit time more longer than road mode. The lower transit times make the road freight is less times than the other modes and can ship the goods quickly.

Road transportation also provides the door to door service. It can proceeds directly from the shipper’s door to the consignee’s door. If the shipment direct to deliver, it lower the transit time and less danger when hold the shipment.Transportation also can smooth the operation of shipment.It more safety because it ship in small quantity than the rail or shipping modes.The bulk quantity of freight in rail and shipping modes can damage the goods.With road mode,the risk of damage can be reduce and less cost of insurance.

Road freight has a more benefit in flexible service rather than other modes.Road mode can adjusted the schedule such as routes and timings based on individual requirements. This flexible service can provide a benefit to a shipper and carrier.They can manage the shipment properly and react on customer requirement.
Besides,road transportation can be loaded quickly.For example, one cargo unit can be loaded less time than need to operate several cargo unit.

Road freight is limited capacity.Water and rail mode can carry the bulk quantity rather than road mode.But, it suitable to carry the high value product such as electronic goods.It also suitable for short distance and domestic market.As a conclusion,every type of modes have their own characteristic.

Read More

TRANSPORTATION REGULATION AND POLICY IMPLEMENTED BY GOVERNMENT

        Due to of development of the world, people are getting sucks with all the complicated system or rules that they must be obey to. Even certain people were starting to create a war when they are talking about the country’s regulation. But if they are taking a look from every single perspective, they’ll see why every single thing in this world is being created with laws and policy. Transportation regulation is becoming the most important law that must be following by every people all around the world. Malaysia is one of the countries that are being very strict for transportation regulation and public policy. Why the government is giving more attention regarding this regulation? Some of this reason will clear up public’s vision on the question why they must be regulation for transportation.

            Firstly, transportation regulation is being created in order to protect the environment. Ever think that your vehicle is being one of the main factors that lead to the destroying of our mother earth? Today, thousands of vehicles are morning on the road every day, causing much pollution such as air pollution, sound pollution and natural disaster. For example, the government had set up the regulation regarding the limit of the items that are being carried out for the truck per journey. These will directly velocity the air pollution produce by the truck. For example, sound in area hospital. Nature disaster is effect from development of facilities for transportation such as road and airport. The government has implemented the new plantation in order save the green environment.

             Also, transportation regulation and policy are becoming one of factors that lead to the development of our country’s economic. With regulation, transportation system in this country is becoming more systematic and totally suitable for any type of movement. Just imaging if there is no rules charged to the road’s users, our transportation system will be ruined, there’ll be more than hundred cases of accident occurs every day causing thousand or even millions ringgit of less especially to all the committee involved in any industry such as manufacture transportation service or any other agencies. In logistic, systematic system of transportation is very important as there’ll be no delay along their journey to reach to the destinations. This’ll totally give no effect towards their cost. Besides, with regulation there will be a tax charged to all the public such as road tax. This type of tax will become one of the country’s revenue.

            Malaysia’s government also becoming more strict towards the regulation or policy regarding the transportation moves in and out of the country. This is due to the mission of our government which is to balance the import and export activity of our country. With transportation regulation, all the domestic or international companies must follow the regulation in order to avoid from any surplus. For example, there must be only several numbers of air cargo moves out of the country every day. This can help in balancing our domestic products with the international products.

            Safety on the road are becoming the most popular issues the country. Every single day, we’re being exposed to many accidents caused involving the road users. This situation still happened even with the regulation stated by our governments. Ever asking yourself what will be going if there is no transportation rules and public policy? The situation on the road becoming more havoc if the is no rules provided. Millions of vehicles are morning on the road exposing the public to the high risk. So, there is the reason why our government had stated over the transportation such as giving a speed limits of the certain places use different road when you are driving truck or and others.

            Transportation regulation and public policy is the things that all the public must obeyed to. Remember transportation regulation is the main factors that lead to the systematic system of transportation and this will totally giving the best reason for the increasing of our economics’ growth today.

Read More

Advantage of Rail Transportation

Transportation is a vital activity in moving both freight and passengers around the world. Transportation is an integral activity in a firm’s implementation of logistics and supply chain concepts. The management of transportation is concerned with the overall purchase and control of this movement service used by a firm in achieving its logistics objectives. Logistic management defined that logistics is part of the supply chain process that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, service and related information between the point of origin and the point of consumption in order to meet customer requirements. There are five modes of transportation is supply chain activities by air, water, rail, road, and pipeline. Rail transportation is from the one of the type of transportation. There are many advantage of using rail transportation.

First, is safety. Rail transportation is a safe land transport system when compared to other forms of transport. Transportation by the means of railway ensures safety for the desired goods because unlike the road transports a train only stops at a desired station instead of the will of the driver. The train driver does not stop over somewhere else. For example, is stop for have rest or lunch. It can avoid from thief.

Next is cheap. Compare from other modes of transportation for example air transportation. Rail transportation is the cheaper. As a matter of fact, rail transportation is even cheaper then road transportation because of the reason that goods in bulk quantities are carried from a desired destination to other. In case of road transport for instance, less goods as compared to road transport can be carried.

More advantage of rail transportation is increase employment. Rail transportation helps people to carry cheap products from a place to another and sell them at high prices. Moreover, for another example, using truck or road transportation to carry the goods from point A to point B, the landed cost is higher than using train or rail transportation. So, those people can use this advantage to gain more profit. As a result of this, a number of people who are unemployed can find a source of their daily income.

Lastly is bulk quantity. Because of the rail transportation is the most cheaper as compare to to air transportation and road transportation, the goods can be carried in a bulk quantity. At the same time, carried the goods in a bulk quantity can safe lot of time or can reduce time of transportation.

Read More

COST OF TRANSPORTATION

            In order to increase the efficiency and effectively of logistics operation, transportation cost is most expenditure that need to control and minimize as possible. If the half of transportation cost can be cut, it will save the whole of operation because since the transportation cost is a single larger cost in logistics operation. Factors that influence the transportation cost such as distance, volume, density, stowability, handling, liability, and market.

          The most factor that influence transportation cost is a distance. The longer the distance of shipment, the higher the transportation cost. This is because the costs is directly contributes to variables cost. Such as labor, fuel and maintenance. The second factor is a load volume. The principle of economies scale of transportation of shipment increase. The most efficient way is consolidate the small load into a large load to maximize the economies of scale.

          Density is for another factor that can influence the cost of transportation. Density is the combination of weight and volume of product. By increase the product density, the more product units can be load. For example, a bottle drink packaging can be replace with can drink in order to increase density. So, we can fully utilize the cubic capacity. Next is stowability factor. Stowability refers to product dimension that fit into transport equipment. The size and shape of packaging should be fit in transportation space.

          Another factor is a handling. Handling equipment is depends on type of commodity or cargo that use. It is easier to handle the containerized cargo. It more complicated to move the live animals cargo because it need special handling equipment. The cost will be higher if the special requirement is needed. Besides, another consideration that influences cost of transportation is a liability. A product characteristic is main things that need to consider, that can be damage or broken. Carrier needs to have insurance to protect against responsibility for damage. Shippers can reduce the risk of damage by improved protective packaging.

          Lastly, is a market factors. For example, balance the lane volume. A lane refers to movement between origin and destination points. Transportation vehicles must return to their origin, either return with back haul load or deadheaded empty. The best solution is both directions so that can minimize the joint cost.

Classification of transportation cost:

1.     Variable cost

2.     Fixed cost

3.     Joint cost

4
     
     Variable cost is a cost that change quickly and it no fixed.For example,labor cost,fuel and maintenance.This cost are measured as a cost per mile or of per unit of weight.Fixed cost is cost that do not change and need to pay even the company is not operate such as during holiday.For example,cost of terminal and vehicles rent.Besides,joint cost are cost that cannot avoid due to decision to provide a particular service.This cost can give can give impact on tranportation charges because carrier need to consider the back haul cost and forward haul cost.For example,carrier need to consider the cost since transportation vehicles is going to destination point and must return to their origin.  


   

Read More