SWOT for Logistic Companies

INTRODUCTION TO LOGISTIC AND SUPPLY CHAIN MANGAGEMENT

OMGT 2221

MR LOW CHEE SENG

GROUP 8

PAK WEI JIAN (S3418191)
GOH CHUAN KIET (S3451654)
CHIA KANG CHENG (S3446526)
DING YOU MEE (S3446534)
TEO MING JIE NATALIE (S3451671)
LEE KAY HOE (S3418042)

Introduction
The purpose of this report is to highlight the Supply Chain issues that the two companies’ faced based on the research we did in Assignment 1 by using SWOT analysis. We will be explaining the Strength, Weakness, Opportunity and Threats by comparing the similarities and differences between the 2 companies. Based on our SWOT analysis, we came up with recommendations to counter the negative issues to improve the operational scope of the businesses.

SWOT Analysis for Seppingan
Strength

Weakness

•Only handles documentation
•Do not own any asset
•Low fixed cost

•Wide variety of storage
•Limited control over operations

•High variable cost

•Low manpower

•Expansion into SEA
•Fluctuations of oil prices
•Own means of transport (provide door-to-door service)
•Fierce competitions within industry

•Goods being damage during transition
•Build a strong relationship with carrier
•Incorrect information

Opportunity

Threat

Explanation:
Strength:
Seppingan does not own any fixed assets like office, warehouse and fleet of transport, hence their low fixed cost. Their operational duties are being sub-contract out and the only thing they do is to handle documentations. By out-sourcing, Seppingan only has to pay as they use the services; this will cut away a lot of the unnecessary idling and wastage cost. This enables them to provide a wide variety of storages according to their customers’ demand.
Weakness:
Without owning any resources and by out-sourcing to sub-contractors, Seppingan have