Preliminary Framework of Logistics Performance Measurement Systems for Ocean Freight Industry
Fatin ‘Izzati Ishak1, Azanizawati Ma’aram2, Rozlina Md. Sirat3, Anis Anizah Mohamad Baba4
1Fatin ‘Izzati Ishak, Department of Materials, Manufacturing and Industrial Engineering, School of Mechanical Engineering, Faculty of Engineering, University Technology Malaysia, Johor, Malaysia.
2Azanizawati Ma’aram, Department of Materials, Manufacturing and Industrial Engineering, School of Mechanical Engineering, Faculty of Engineering, University Technology Malaysia, Johor, Malaysia.
3Rozlina Md. Sirat, Department of Materials, Manufacturing and Industrial Engineering, School of Mechanical Engineering, Faculty of Engineering, University Technology Malaysia, Johor, Malaysia.
4Anis Anizah Mohamad Baba, Department of Materials, Manufacturing and Industrial Engineering, School of Mechanical Engineering, Faculty of Engineering, University Technology Malaysia, Johor, Malaysia.
Manuscript received on 04 May 2019 | Revised Manuscript received on 09 May 2019 | Manuscript Published on 13 May 2019 | PP: 285-290 | Volume-8 Issue-7S May 2019 | Retrieval Number: G10510587S19/19©BEIESP
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: Two third of ocean freight industry in Malaysia are classified as small and medium enterprise (SME) which they are currently struggling to stay in industry caused by the merging of global shipping alliances. The merging of alliances has impacted the SMEs in terms of competitiveness in getting business opportunities, where SMEs have to compete alongside established companies with well-known reputation. Therefore, differentiation is becoming very crucial factor in order to leverage their capabilities. Without differentiation factor, SMEs are unable to identify their competitive advantages that distinguishes them from competitors, hence causing difficulties to survive in the industry. Another issue arises is the absence of a unique Logistics Performance Measurement System (LPMS) that considers the eccentric characteristics of ocean freight industry, therefore causing slow adaptation of LPMS despite the size and maturity of this industry. Thus, this research attempts to develop a preliminary logistics performance measurement system (LPMS) framework for ocean freight industry and incorporates differentiation factor in the developed LPMS. The preliminary framework is developed based on extensive literatures in logistics performance measures, and consists of three logistics performance measurement dimensions (efficiency, effectiveness and differentiation). However, this framework is only a preliminary point for incorporating the views of logistics dimensions in the critical processes.
Keywords: Logistics, Ocean Freight Industry, Performance Measurement, Shipping.
Scope of the Article: Materials Engineering