The Pirates of the Silverland (Palm Oil Piracy)
If you in the position of En. Rossly, what would you recommend to Datuk S. Najeed? Answer
There are some problems happened in Palm Haul Sdn. Bhd. (PHSB). The major client of PHSB may not renew their contract because the CPO delivered either deliver short or contaminated with water or sludge. Rising in compensation occurs because PHSB need to compensate their client for the shortage of CPO when the tankers arrived at the respective refineries. Actually, the tankers are loaded with the amounts stated in the delivery orders but when the tankers arrive at the clients, the quantities delivered are short. Other than that, this problem happened quite often at the year-end. Major festivals occur at the year end and the driver might sale the CPO to other syndicates to gain more money. So, PHSB need to pay total compensation when the CPO did not arrived at refineries. Thousands of metric tons of CPO never arrived at the destinations either end-up missing, with the tankers not arriving at the refineries or when the tankers arrive but the quality of CPO is compromised. Tankers are found abandoned by the roadside and empty with the drivers missing. The problem of oil pilferage also may occur because the driver needs money for personal expense at the year-end. The quality of CPO delivered also one of the problems to PHSB. The quality is not good because the order of required temperature is not meet. The issue of driver shortage is the matter of remuneration package for the driver getting from PHSB. Big companies may poach the drivers of PHSB by offering more lucrative remuneration package to the drivers. So, this may lead PHSB to driver shortage. Maintenance cost for PHSB is very high because there is no schedule for regular maintenance on the tankers. This problem occurs because Aliah did not have time to make a schedule of it. The company still done the driver allocation and scheduling manually and Aliah...
Please join StudyMode to read the full document