Operational Opinion by the Manufacturers

The competitiveness and logistics performance of Malaysia are highly supported by the service sector. They act as enabler and encourages the trade domestically and globally. It is ability of the manufacturing firms to arrange and realise its material, operations, information and money flows as reliability, effectively, and cost efficiency as possible.

Decision to outsource or move out the operation from Malaysia

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Managing efficient global sourcing network is challenges among the manufacturers and distributors. The optimal cost of production is not only the reason, however, trade facilitation also will be determined of location. In addition, there are other factor that contribute to the decision to move out the operation such as low cost of direct and indirect labour, better logistics infrastructure etc. This graph demonstrates the possible decision based on percentage by respondents agree with the statement.

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The important of future development in logistics operations

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Future development in logistics operations is vital important for Malaysia. Currently, trade logistics effiency is not only to reduce the cost, however include readiness of industry towards Industry 4.0. In relation to operation, transparency, cost reduction and; competency and quality of logistics services are utmost priority. In addition, results also revealed readiness of industry to develop information systems as well as utilise mobile solutions to maximise customer satisfaction.

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The competence area of personnel that benefit to firm

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Managing trade logistics and global supply chain require skillful and experience among the personnel. It is  important factor for those investor to rely on professional and semi professional labour for operation and strategic planning in Malaysia. Nine basics trade logistics competence areas are highlighted. This results reflect the readiness of Malaysian education and industry training in trade logistics and global supply chain.

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Rate the Malaysian business environment

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A market-oriented economy and government policies that provide businesses with the opportunity for growth and profits have made Malaysia a highly competitive manufacturing and export base. Malaysia require talented graduates in logistics and supply chain as well as trainable workforce. Complement with the excellent personnel, efficient production location as well as logistics infrastructure then contribute to long term competitive advantage for Malaysia.

 

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Logistics functions reflect to firm's competitiveness

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The graph shows the main elements and logistics functions that reflect to firm's competitiveness. How well the goods arrive to customer's premise with the right time, right place and without compromise the goods conditions. It incudes major logistics funtions separately eg; order processing, inventory control, warehousing, transportation, material handling and storage and information. 

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The Proportion of outsourcing the logistics operations

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Outsourcing typically increases a firm’s flexibility and access to state-of-the-art products and processes. As markets or technologies change, many firms find changing supply chain partners easier than changing internal processes. With outsourcing, less investment is required up front in the resources needed to provide a product or service. The benefits of outsourcing can be significant. However, not all logistics operations are outsourced to other party. This is to ensure firm's business strategy and how well they can maintain, control and measure their own standard performance.

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