Palm Oil Piracy

In: Business and Management

Submitted By kythie86
Words 1393
Pages 6
Summary of the case:

Palm Haul Sdn Bhd (PHSB) established in 2002 at Taiping Perak. It was a small and medium sized enterprise in crude palm oil (CPO) transportation business. PHSB was managed by En.H.Rossly and son in law of its founder, Datu S. Najeed. PHSB was facing the same problems likes others transportation companies which is drivers embroiling in oil piracy. The transportation companies will bear the responsibilities of compensation of the refineries if there any hijacking or piracy happened. The involved culprits most probably are the tankers’ driver, deport operators and the transporters.

One of the major customer of PHSB, Oilene Refineries Sdn Bhd (Oilene) was complaining to Datuk Najeed on the poor quality of CPO delivered by PHSB and it has caused them in big losses in their business as failed to fulfill the requirement of their customers. Oilene will not renew the contract if PHSB does not improve the situation in one month. Besides that, Datuk S. Najeed has reviewed the first quarter result of 2009 and noticed that the profits has dropped significantly compared to the same period of last year. If Oilene could not placated and, as a consequence, decide to leave their custom, PHSB would run into the trouble to return profits for the coming financial year.

Datuk Najeed was very happy and insisted Rn.Rossly to investigate on these matters and report to him within one week with possible solutions. En.Rossly invited his university’s friend, Mukhiz Mohd who was from a management consultancy firm to assist on this.

Problems:
There are some problems happened in Palm Haul Sdn Bhd (PHSB) as below:

1) The clients of PHSB might not renew the contract with PHSB because of shortage of delivered of CPO and contamination of CPO with water of sludge. In facts, the tankers are loaded with the amounts stated in the delivery orders…...

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