Significant of Port in Malaysia

MIICEMA 2014 10-11 November 2014 Hotel Bangi-Putrajaya, Malaysia 189 Port activities are usually highly dependent on the specific port activities and size. For example, the activities carried out in the container port are different from activities in the oil port. The same reasoning is from the perspective of the size, general depth, and type of ports services that being offered such as handling, storage, warehousing, added value services stuffing, stripping, assembly, packaging, labelling, testing, integration, separation, transportation between modes using a pipe, truck, train, or ship to a short distance from the ocean, maritime services pilot, tugs, boatman, ship traffic control and other services Mazaheri and Ekwal, 2009. Port related player consist of major port actors and other service provider that operate close to port parameter whether located inside or outside of the port Coppen et. al. 2007, cited from Jacob and Hall, 2007. Port supply chain activities adapted from Lee et. al. 2003 can be generally described in figure 1 consist of several major task namely provide facilities and service for ship, provide facilities and service for cargo, administrative formalities regulatory, safety, security, traffic, port operation, human resources, finance etc, cargo transfer, and value added activities Alderton 2008, Mora et. al. 2005. Establishment of regulatory mechanism are undeniable important to distinguish between legitimate and illegal cargo transaction. Movement of unverified cargo either to the local economy or to the public safety is being prohibited to cross national border through effective enforcement of trade regulation. Lead government agencies in the like of Customs, Police, port authority , and other competent agencies have a big responsibility in facilitate and enforce the trade regulation to ensure proper conduct of import and export activities Trade Facilitation Handbook, pg.22Grainger, 2007. Furthermore, port operation is an integral part for supply chain activities that realize four intrinsic flows that explained the functionality of the supply chain namely; material flows, information flows, finance flows, and commercialtransactional flows Lu , 2011. As depicted in figure 1 from SAP publication that discuss of current SCM trend Knolmayer et. al., 2009 that involve material, financial, and information flow. The first three flows are quite visible in the business environment. While the last component is slightly conceal from the public as its only deal with the change of product ownership along the supply chain.

1.2 Background Study of Supply Chain Management in Industry

Research that begin in 1950’s to 1960’s has prompted most manufacturer to concentrate more on mass production with the intent to minimize cost with less product and process flexibility. Later, the manufacturer in 1970’s realize the impact of huge Work in Progress , manufacturing cost quality , new product development and delivery lead time that eventually create manufacturing Resource Planning to tackle the issues. In the 80’s amid intensify global competition, improving manufacture efficiency and cycle time was the goal to establish cooperative buyer and supplier relationship in order to achieve company strategic goals e.g, Just-In-Time JIT, Total Quality Management TQM Keah 2000 pp40-41 . Since the ea rly 1990’s, people in the academic line and practitioner community have gradually focus more to the supply chain and supply chain management SCM in order find best practice to stay competitive. Industrial buyer rely more on third party services provider 3PLs to improve transportation and logistics MIICEMA 2014 10-11 November 2014 Hotel Bangi-Putrajaya, Malaysia 190 management that stress more on the issue of quick response, service response, and integrated logistic Recent emerging interest is based upon current business environment which becoming globalize and highly competitive Chan and Qi 2003,Tonya Boone Ram Ganeshan 2002 p. 6, Wisner, Tan Leong 2012 p.12. Participant of supply chain started from a simple supply chain of supplier and customer to more extended form that reminiscent of current local and global supply chain component portray in figure 2 Scott et. al., 2011. Hugo 2011 also described in his paperback that services provider can also be refer to the whole other categories of companies or organization that serve up the required services to other companies in the supply chains eg. transport, finance, forwarding, Warehousing.