PROTON LAUNCHES CENTRALISED LOGISTICS HUBS IN SIJANGKANG AND TANJUNG MALIM
PROTON Holdings Berhad through its subsidiary, Proton Edar Sdn Bhd (PESB) and leading total logistics provider, Konsortium Logistik Berhad (Konsortium) launched its state-of-the-art centralized logistics hubs in both Sijangkang and Tanjung Malim recently. The launch of the hubs, which are also known as Centre for Logistics, Allocation, Storage and Services (CLASS), gives the national car company the competitive edge to handle fast delivery of cars in the best possible condition for domestic and export markets.
PROTON Advisor Tun Dr Mahathir Mohamad launched the hubs, at an official opening ceremony in Sijangkang, Kuala Langat, which was attended by about 400 guests. Also present at the launch were PROTON Chairman Dato’ Sri Mohd Nadzmi Mohd Salleh, PROTON Group Managing Director Dato’ Sri Haji Syed Zainal Abidin Syed Mohamed Tahir and PESB Chief Executive Officer Encik Mohamad Shukor Ibrahim. Joining them at the event were Konsortium Chairman Haji Ismett Azyze Hamad Abbdul Azyze and its Chief Executive Officer Encik Che Azizuddin Che Ismail. Konsortium, which is majority-owned by Ekuiti Nasional Berhad and Lembaga Tabing Haji, is the appointed service provider for the hubs.
The Sijangkang CLASS and Tanjung Malim CLASS, the first-of-its-kind, fully computerized hubs set up by an Original Equipment Manufacturer (OEM) in Malaysia, have now entered its second phase, after commencing operations to cater to domestic dealers nationwide for over a year. Both the hubs officially began preparing cars for shipment to export market on 4 April 2011, meaning that all export bound cars now also go through rigorous pre-delivery inspection there to ensure that PROTON’s overseas distributors receive the cars in the best condition.
PESB, had since 1 April 2010, outsourced the task of managing its deliveries to KLB in an effort to improve its supply chain. With both hubs in operation, cars from PROTON Shah Alam manufacturing plant are now sent to the Sijangkang hub for staging, storage, pre-delivery inspection and pre-shipment inspection before being sent via trucks to sales outlets to be subsequently delivered to customers. Cars from PROTON Tanjung Malim manufacturing plant go through the same processes at CLASS hub located within the plant. Other services provided at the hubs are logistics planning, vehicle storage, stock storage maintenance, washing and fuelling.
The 50 acre-Sijangkang hub, which started operations on 1st April 2010, can accommodate 7,000 cars at a particular time while the 45-acre Tanjung Malim hub, which began operations in June 2010, can accommodate 6,000 cars at one time. The event also saw the signing of a service level agreement which officially sets the service level of Konsortium in terms of storage maintenance, pre-delivery inspection and delivery preparation. Encik Mohamad Shukor and Encik Che Azizuddin signed on behalf of their respective companies. Dato’ Sri Mohd Nadzmi said with the hubs, PROTON would now be well positioned to become a prominent and relevant global automotive player.
“With this, we have the competitive advantage of a fast delivery system and centralized supply chain center. We can proudly say that the centralized hubs give us the cost savings benefits in terms of operations and service charges compared to previously.
“The hubs enable us to strengthen our position in the domestic and global markets by centralizing our operations and services to improve efficiencies of delivery of cars in the best possible condition to customers in the highly competitive marketplace,” he said.
Meanwhile, Dato’ Sri Syed Zainal Abidin said PROTON would be able to maximize its logistics efficiency by reducing costs and delivery time, thereby helping increase customer satisfaction domestically and globally.
“Previously, pre-delivery inspection was handled by local and international dealers at the respective service outlets prior to handing the cars to customers. That is no longer the case, as the process is now done at the hubs,” he explained.
“The hubs will help us standardize the pre-delivery inspection of all vehicles, and this is significant in ensuring fast delivery of cars for domestic market. The CLASS process enables us to reduce a host of problems including multiple handling by 40%, unnecessary waiting time to a maximum of three days, secondary defects and excess inventory at staging points,” he added. Haji Ismett Azyze congratulated PROTON on the implementation of the hubs adding that: “Konsortium is proud to be PROTON’s trusted partner in this advanced hub and we are confident that we will grow stronger from here on,” Encik Che Azizuddin said in April 2011, CLASS successfully delivered a total of 14,573 units of vehicles to its distributors and dealers.
“The total delivery units grow every month and this signifies that Konsortium has the know-how, dedication, creativity, innovation, capacity, technology and the most important element of skilled and highly-trained human capital to manage efficiently and effectively this critical part of the automobile industry.”
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