Wednesday, February 26, 2014

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.

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