Sunday, February 9, 2014

Topic 1: Provide opinion how the transportation provider response and face the pricing increase of fuel.

Nowadays the economy of Malaysia was affecting many things. This is including the increasing of fuel price. The transportation providers need to face this situation. This is because even the price increase they still need to provide the service. Therefore the company of transportation providers have to find the way to keep the best service and meet customer requirements. From our opinion the transportation providers face the pricing fuel issues by create more consolidation of shipment, make an innovation to their transport and apply the concept of fully utilized.

To face this critical situation they also can make an innovation to the transport itself. For example they can change the basic engine to bio diesel. For sure this innovation involved a lot of investment but for a long time it can help to reduce the cost especially the fuel cost. Besides that they also can apply the concept of fully utilized. When the shipment is move from point of origin to the point of consumption with full utilized shipment then it must have same used of space of shipment when it is return. This concept can rely when the fuel pricing was increased.

In Malaysia, all the transportation providers must face the unstable economy. However they need to run their business even the price of fuel is increased day by day. What happen if they stop their business because of this issue? Of course the logistics in Malaysia cannot run well. The manufacturer cannot run a production and customer cannot get their product as well. Therefore, by hook or by crook they must face and find a solution to get through of this situation and at the same time they still can get the profit.

For the first time the price of fuel increase, the transportation providers must have badly responses. When the fuel price increases most products also get the impact. Raw material will be high cost. Government side also need to control the price of product. In conclusion, the transportation providers must have their own way to solve the issue of increasing fuel price in Malaysia.

Date of published: 9th February 2014

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