Palm Haul Sdn. Bhd. (phsb)

1.0 Introduction

The case study is about a company, Palm Haul Sdn. Bhd. (PHSB) a transporter of crude palm oil (CPO) is facing few problems such as palm oil piracy as well as complaining from its major customer, Oilene Refineries Sdn Bhd where these problems cause the profit of PHSB had dropped significantly compared to the same period last year.

Oilene Refineries Sdn Bhd is complaining about the Quality and Quantity of the CPO delivered by PHSB and its subsequent impact on Oilene Refineries’s inability to fulfill customer orders. Oilene Refineries seriously affected by the bad consignments as they had to shut down the plant to clean out the sludge almost on a weekly basis and this was affecting their delivery timelines as well as the quality of the oil they produced. On top of that, there had been many occasions where the consignment delivered did not tally with amounts listed on the delivery orders. Thus, Oilene Refineries management had to decide whether to renew contract with PHSB which is due in June or to hire other CPO transportation company such as Tiger Oils Transporter which reported a more reliable transporter.

Besides PHSB often faced with thousands of metric tonnes either end up missing, with the tankers not arriving at the refineries or when the tanker eventually do and the CPO is transferred, the quality of the oil is compromised. Many of the tankers that do not reach the refineries are, instead, found abandoned by the roadside, and empty, with the drivers also missing. These had caused a significant amount of compensation being paid out where this expense is related to the total payments made by PHSB for the shortage of CPO when the tankers arrived at the respective refineries.

As Datuk Najeed, the owner-cum-founder of PHSB insisted that En. Rossly, the CEO of PHSB investigates the matters and report to him within one week with possible solutions, the following questions might help in generating solutions and there are few suggestions recommended by our group in order to solve those problems faced by PHSB.

https://www.scribd.com/doc/310506057/The-Pirates-of-the-Silverland

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The case study is about a company Oilene Refineries Sdn Bhd complaining about the quality and quantity of the Crude Palm Oil (CPO) delivered by a transporter Palm Haul Sdn Bhd.

Process of producing refined palm oil starting from Palm kernel are harvested and transported at the mill for CPO extraction and then refined by the refinery for local consumption/export. Refineries largely outsource the transport of CPO using customized tanker to carry. Competition of transport companies is robust, if one company losses a contrct chance are there for others to have the contract.

Gross profit margin for the industry is between 35% to 45%, administrative overhead are usually low and transportation company can generate a reasonable net profit if operate efficiently.