CHAPTER 1 = SUPPLY CHAIN MANAGEMENT

CHAPTER 1 : LOGISTICS IN SUPPLY CHAIN MANAGEMENT

Integrated management

Since the industrial revolution,achieving best practice has focused managerial attention on functional specialization.Two important facts of supply chain logic resulted from increased attention be integrated management.

·        Enterprise extension

The central trust of enterprise extension expended managerial influence and control beyond the ownership boundaries of a single enterprise of a single to facilitate joint planning and operations with customers and suppliers.

Tiong Nam Branches:

·        Lot 21,Export Oriential Industrial Zone,Ph1,KKIP Selatan,Jalan Sepanggar,Menggatal,88460 Kota Kinabalu,Sabah.

·        Lot 640 Blok 4,MTLD,Demak Laut Industrial Estate,Jalan Bako,93050 Kuching,Sarawak.

·        23,Senoko Loop,Woodlands East Industrial Estate,Singapore 758155

·        Lot 3324,Jalan Parit Bilal,83000 Batu Pahat,Johor,Malaysia

·        Lot 61383,Seksyen 10,Bandar Baru Bangi,Daerah Hulu Langat,Selangor Darul Ehsan , Malaysia.

·        Lot 5,Jalan Sultan Muhammad4,42000 Port Klang,Selangor,Malaysia

·        Lot 203d,Gebeng Industrial Estate,26080,Kuantan,Pahang,Malaysia

·        917,Permit Jaya,Taman Chendering,20180,Kuala Terengganu,Terengganu,Malaysia.

·        Pengkalan Chepa,16100 Kota Baru,Kelantan ,Malaysia

·        Jalan Kuala Kangsar,31200 Ipoh Perak ,Malaysia

·        Kawasan Perusahaan Bukit Tengah ,14000 Bukit Mertajam , Pulau Pinang,Malaysia.

·        Kampung Kolam,02100 Padang Besar,Perlis, Malaysia

·        Well Grow Industrial Estate,155moo 5,Bangsamak,Bangpakong,Chachoengsao 24180 Thailand

·        Integrated Service Providers

The two traditional logistics service providers are transportation and warehousing specialists.

Two significant benefits are gained when shippers use public warehouses.

1.     Elimination of capital investment in warehouse buildings

2.     Ability to consolidate small shipments for combined delivery with products of the other firms who use the same public warehouse.

Cargo service providers Tiong Nam’s earnings are bright as it reinvests to add a 100,000 sq ft automated storage retrieval system warehouse and a million sq ft of conventional warehouse in Shah Alam.Tiong Nam has about 2,000 lorries of various capacities such as open,box/bonded and refrigerated containers,enabling it to transport goods of varying temperatures including dry,chilled and frozen products.

The Johor-based company owns more than 70 warehouses in the region with a combined storage capacity of more than 5.7 million sq ft , including general warehouse,bonded warehouses,cold rooms and free trade zone warehouses.

 TIONG NAM WORK OF LOGISTICS

PURCHASING AND ORDER PROCESSING

General Whole Process of Purchasing & Order Processing in Tiong Nam

Quotation (from supplier) -> Management Preview -> Issue Purchase Requisition -> Obtain Purchase Order -> Delivery -> Invoicing

1.     Quotation – Supplier will send their quotation of their desired products or services to Tiong Nam.

2.     Management Preview – The management team of Tiong Nam will value either the supplier is   capable to supply the products with the price which means the supplier is competitive or not. Tiong Nam also will value if the supplier have the right and good quality of products.

3.     Issue Purchase Requisition (PR) – Issue PR is the documentation needed before obtaining the purchasing order. Issue PR is compulsory in order to get the approval from the management team.

4.     Obtain Purchase Order – After getting the approval from the management, Tiong Nam will send purchase order to the supplier.

5.     Delivery – Tiong Nam will deliver the shipments as ordered by the suppliers or customers.

6.     Invoicing – Supplier will issue invoicing to Tiong Nam to request the payment.

INVENTORY MANAGEMENT

1.     Types of Systems – Tiong Nam’s dedicated IT team is fully committed in providing and supporting their client’s custom requirement through their adaptable Warehouse Management System (WMS) and Integrated Logistics Management System (ILMS).

2.     System Functions – The system incorporates functions such as RF barcode scanners, RFID readers, daily stock synchronisation, electronic inbound/outbound confirmation, product conversion, exception handling and real-time inventory status. It has an outstanding track record since its implementation in 2002.

3.     Delivery Services – Tiong Nam warehouse services are fully integrated with delivery services. It has a large fleet of trucks of varying capacity ensure that goods are delivered on time and exceeding the customer’s service expectations.

4.     CCTV Facilities – Its warehouse security is state of the art, equipped with CCTV facilities that enable them to remotely monitor and view their warehouses. They further constantly upgrade their equipment to always exceed current market services to their customers.

WAREHOUSING

1.    From one bonded warehouse in 1993, Tiong Nam now owns over 60 warehouses in the region with a combined storage capacity of over 3.5 million square feet. This includes General Warehouse, Bonded Warehouses, Cold Rooms and Free Trade Zone/Free Commercial Zone Warehouses.

2.     Besides providing a convenient tax-free storage for goods needing to be    exported/re-exported, Tiong Nam warehouses’ operations are run by the cutting-edge, high-volume Warehouse Management System (WMS), designed to ensure accurate, fast and smart inventory management

TRANSPORTATION

·        With over 1900 trucks of various capacities including open, box/bonded and refrigerated containers, Tiong Nam is the largest trucking company in Malaysia today. Thus, it is able to transport any type of goods stored at varying temperatures – from dry, to chilled and even frozen.

·  Tiong Nam owns a large fleet of haulage trucks, prime movers, car carriers and that can move 20 40 foot containers. It also own over 200 units of material handling equipment such as forklifts and reach trucks that facilitate warehouse operations.

·         Besides domestic transportation, both their teams of drivers and on-ground staff are also highly experienced in providing cross-border services between Singapore-Malaysia and Malaysia-Thailand, in demountable goods especially.

·        Furthermore, to avoid any unnecessary extra handling of goods, it also provide crane services at the relevant customs check point to transfer  box containers onto trucks belonging to its affiliates of that country which then transports customers’ goods in perfect condition to its destination.

·        Tiong Nam has the solution that covers almost all components of a cold chain. Tiong Nam has one of the largest cold room services in Malaysia, with warehouses in three different locations: Kampung Baru Hicom, Shah Alam and the latest in Bangi, which has 170,000 square feet of storage space.

·         Tiong Nam has the know-how and a comprehensive selection of heavy transport equipment configurations to undertake transportation of various types of heavy and oversized cargoes safely.

Other services:

1.     Consolidated cargo.

2.     Door-to-door express delivery.

3.     Relocation of house and factory.

4.     Ship and air cargo agent.

General flow of transportation:

1.     Received order -Tiong Nam will ensure that they receive an order from supplier or customer before they make the delivery.

2.     Shipping documentation -Office of Tiong Nam will prepare all the shipping documentation needed in order to make delivery especially when it comes to import and export activities which include other countries.

3.     Liaise with trucking department -Tiong Nam will liaise with trucking department. This means that they will plan for the detail routing and scheduling of the shipments.

4.     Delivery -Then, if everything is complete, Tiong Nam will make the delivery to the right place with the right product and the right quantity within the least time.

INFORMATION TECHNOLOGY

1.     Taylor-made -Tailor-made system produces the products with customization from the customers demand. This system accesses into the department data in order to make the production. The customization of the products can improve customer service but the company must give information about the expired date or the perishable products. This is a flexible system in Tiong Nam Company to ensure that their customers are very satisfied with Tiong Nam services.

2.     Mistaken-proven -Mistake-proven system is very important to the company because the company must tell the customers if the products have any mistake such as the invalid bar or invalid stock. This system is very important because the company have to tell about the mistakes to their customers faster to avoid any misunderstanding and unwanted circumstances.

3.     Configure system -Configure system is about sending the important message to the customers. This system automatically sends message every day or two hours once. This system is important to inform the products if the products will be expired such as ink. If the products have expired, the company have to bear the cost of the products, based on the agreement