Malaysian Logistics: Where Do We Stand

Logistics has become an essential part in the supply chain of businesses. It should be viewed as an integral part of the supply chain processes. To achieve better integration with the international supply chains, Malaysian logistics companies must focus more on the supply chain management.

There are new approaches on how business transaction is carried out today. They include:

1. Information technology (IT) has been intensively used and incorporated into business.
2. Traders want their goods to be delivered at lower cost and yet efficiently handled. They want their goods to arrive on time at destination.
3. Traders are now prefer goods to delivered on "door-to-door" basis instead of "port-to-port" and require combination of different transport modes.
4. Many companies are now prefer to keep low inventories in order to lower their storage cost.
5. More manufacturers are outsourcing their production materials worldwide and look for lower price in order to stay competitive.
   

In order for the Malaysian logistics companies to put themselves in a better position, they have to capitalize these trends. They have to play more active role in moving out the materials along the supply chain by providing better speed, efficiency and also at very competitive price.

Logistics industry has become one of the crucial growth factors in the Malaysian economy. In 2007 for example, logistics players have handled about RM 1.1097 trillion worth of trade with 15.3 million TEU of containers. With these figures, we have placed Malaysia as one of the top 20 trading nations in the world.

To make Malaysia as a regional logistics hub, certain issues must be addressed. We need to have skilled and well-trained manpower who are able to bring in innovative solution and introduce new services. The fact that we are located in the center of the Asia Pacific Region, gives us additional advantage to emerge as the gateway between the East and the West. The bundling of goods in Malaysia for example, allows for the shortest transit time to and from Europe and also for intra-Asia trade.