Optimization of the Delivery Process of Machinery Leasing Logistics

This case study analyzes the optimization of the delivery process for machinery leasing logistics at Johnson Arabia, a company specializing in Mobile Cranes and Aerial Work Platforms in the UAE. The research identifies shipment delays as a key problem, exploring both external factors like customs inspections and documentation issues, and internal factors such as inconsistent employee work hours. The study aims to provide recommendations for optimizing the delivery time of shipments to Oman, addressing bottlenecks and minimizing disruption risks. The research methodology includes a literature review and interviews to understand the current shipment process, goals, challenges, and performance metrics. The analysis covers the impact of external factors, internal bottlenecks, and potential solutions to improve the delivery of rental equipment. The final report proposes new shipment policies and strategies to enhance efficiency and customer satisfaction. The research also investigates the company's operations, including its fleet size, market presence, and the challenges faced in its operations, and provides recommendations to improve the delivery process of rental equipment to customers.

Optimization of the Delivery Process of the Machinery Leasing Logistics
A CASE STUDY OF JOHNSON ARABIA COMPANY, UNITED ARAB EMIRATES
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PREFACE
This research initially emerged from my passion for exploring supply chain problems and
creating better strategies for shipment departments. I would not have achieved and completed the
research without the help of a hardworking and valuable group of individuals such as the one at
Johnson Arabia.
Firstly, I would like to thank my supervisor at Johnson Arabia, Siddhi Mulaokar, who provided
me with reliable information that helped me formulate a recommendation for this research.
Moreover, a special thanks to my mentor, Oscar Peters, for his feedback and encouragement
throughout the thesis period.
Lastly, I would like to thank my family and friends for all their motivation, support, and
appreciation during this time.
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Table of Content
s
Optimization of the Delivery Process of the Machinery Leasing Logistics....................................1
A CASE STUDY OF JOHNSON ARABIA COMPANY, UNITED ARAB EMIRATES............1
PREFACE........................................................................................................................................2
Table of Contents.............................................................................................................................3
ABBREVIATIONS AND ACRONYMS........................................................................................4
EXPLANATION OF TERMINOLOGY.........................................................................................5
1. INTRODUCTION.......................................................................................................................8
1.1 Johnson Arabia.......................................................................................................................8
1.2 Research Problem..................................................................................................................8
1.3 Research Objective and Main Research Questions................................................................9
2. RESEARCH METHODOLOGY............................................................................................11
3. LITERATURE REVIEW.........................................................................................................19
3.1Theoretical Framework.........................................................................................................19
3.2 External Factors Contributing to Delivery Delays...............................................................20
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3.2.1 Quay Crane................................................................................................................20
3.2.2 Dwell Time..................................................................................................................21
3.2.3 Cargo Storage and Handling Infrastructure at Port..............................................21
3.2.4 Custom Clearance.....................................................................................................22
3.3 Internal Factors Contributing to Delivery Delays................................................................23
3.3.1 Management...............................................................................................................23
3.3.2 Technology.................................................................................................................24
Chapter4: ANALYS/ result...........................................................................................................24
Analysis of first interview:.........................................................................................................24
1. General details about the interviewer and the interviewee that are based on the
conversation between them...................................................................................................24
2. Evaluation and analysis in detail of the company service shipment...........................25
3. Identification and evaluation of the working schedule of the employees that are
working in the company and their welfare...........................................................................25
4. Elaborating the challenges and the reasons for the downfall of the delivery system
in the company.........................................................................................................................26
5. Analysis of the equipments that the firm possess.........................................................26
Analysis of second interview:....................................................................................................26
Analysis of third interview:........................................................................................................26
Analysis of Fourth Interview:....................................................................................................26
Analysis of fifth interview:........................................................................................................28
BIBLIOGRAPHY..........................................................................................................................32
Appendix1: Certifications..............................................................................................................35
Appendix2: Interview request by email.........................................................................................36
Appendix3: interview transcript....................................................................................................37
ABBREVIATIONS AND ACRONYMS
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Abbreviatio
n
Meaning
UAE United Arab Emirates
JA Johnson Arabia
UNCTAD United Nations Conference and Trade and Development
ICT Information and Communication Technology
IT Information Technology
AWP Aerial Work Platform
MC Mobile Crane
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EXPLANATION OF TERMINOLOGY
Dry port: This is a port where the provision of essential services are carried out in dealing
with the storage of containers for a short period of time, with cargoes that arrive
and depart from the port by several means such as roads, railways, airports or
waterways (Roso & Lumsden, 2010).
Dwell time: This refers to the duration of elapsed time from when the cargo arrives, to the
time products depart from the port facilities after being issued with licenses and
permits (Huynh, 2008).
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1. INTRODUCTION
1.1 Johnson Arabia
Johnson Arabia (JA) is a global company that specializes in Mobile Crane and Aerial Work
Platforms (AWP). The company was established in the United Arab Emirates (UAE) in 1999,
with the headquarters situated in Dubai. The company provides the leasing of construction
machinery and equipment, such as cost-efficient and versatile lift engineering solutions (Johnson
Arabia, n.d). These are provided to the following industries: petrochemical, civil engineering,
construction, industrial, utilities, aviation, and marine. Johnson Arabia currently operates its own
fleet of approximately 250 Mobile Cranes and 700 Aerial Work Platforms (AWP) (Daniel,
2019).
The company is guided by a strong mission that seeks to be a premium shipping company with
international and local legislation in addition to industry practices. It is the most valuable market
leader around the region that sets records and trends with a dedicated and professional staff
committed to excellence in safety, maintenance, availability, reliability, and total cost-
effectiveness (Johnson Arabia, n.d).
Johnson Arabia employs approximately 400 employees and the company has expanded its
operations in other countries such as Oman, Saudi Arabia, Kuwait, and Bahrain (Zawya, 2020).
The company, however, primarily offers its products in three different locations: Dubai Industrial
City (Dubai, UAE), Musaffah Industrial Area (Abu Dhabi, UAE), and Flagi Al Qabali (Sohar,
Oman). Johnson Arabia has played a major role in construction projects in several areas such as
the Abu Dhabi International Airport, Dubai Expo 2020, and Duqm refinery in Al Duqm, Oman
(Johnson Arabia, n.d).
1.2 Research Problem
The shipment process is an issue that has seen numerous delays at Johnson Arabia. The company
is experiencing a large problem concerning the equipment rental in recent years (Johnson Arabia,
n.d). Mobile Crane and Aerial Work Platforms are exported from the United Arab Emirates to
Oman; they are passed through several procedures, department processes, and shipment and
boarding processes. Within this, however, there are external as well as internal causes for the
delay in the shipments (Johnson Arabia, n.d).
The external causes can include many issues concerning different aspects and points of the
deliveries. Firstly, the presence of strict custom checks and custom inspections can create
problems. Additionally, issues related to customs such as incomplete documentation and
information can be found. Moreover, the misplacement of crucial documents such as the original
bill of lading and overweight cargo – which leads to delays, unexpected closures, etc. – can
cause several issues along the way. Therefore, the containers (Mobile Crane and Aerial Work
Platforms) can be considered as not as timely, compared to other shipments, when moving from
Oman to the United Arab Emirates. The move between these particular companies can, in fact,
typically cause the delay (Johnson Arabia, n.d).
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These obstacles lead to the delay in the shipment process of the containers to Oman at Johnson
Arabia, adding to the internal causes for the delay. For example, the company has various
maintenance plans to monitor all units, however, employees may not be able to oversee these
plans and service programs due to their inconsistent work hours, making them unavailable.
(Middle East construction news, n.d). These issues were considerably less in the past, but it has
increased rapidly in recent years. One of the reasons for this could be the rise in the thorough
searches and checks at customs for security reasons. It is vital to recognize and overcome these
obstacles as they can lead to several negative repercussions for the company. The delay in
shipment can cause a setback in the delivery of the product to the customer and this will reflect
negatively on the company. Over time, customers, in response, may not stay loyal. The extreme
and unfortunate result of this can lead to a major decline in sales and profitability for the
company. Consequently, delay charges such as demurrage, detention, and per diem may arise.
Therefore, it is essential to address this issue in Johnson Arabia which can be done by putting the
right policies in place such as strategies, and practices to be able to curb this situation (Johnson
Arabia, n.d).
1.3 Research Objective and Main Research Questions
The objective of this research was to submit an advisory report to Mrs, Siddhi Mulaokar, the
Marketing officer at Johnson Arabia. The report has identified and discussed the potential
obstacles leading to the delay in the shipment process of goods to Oman at Johnson Arabia, as
aforementioned. The final product of this research was to deliver a set of new shipment policies
for the company and a recommendation of the possible solutions to these obstacles.
This study had a main research question that was as follows:
Which strategy should Johnson Arabia apply to optimize the delivery time of the
shipments of rental Mobile Crane and Aerial Work Platforms to its target customers
in Oman?
Following the main research questions and the sub questions of this research paper, the sub
questions are essentially the main research question broken down into smaller portions to
provide a more concise answer.
1. What is the current shipment process of rental Mobile Crane and Aerial Work Platforms?
1.1 Which activities are included in the shipment process?
1.1.1 Which steps can be identified within the process?
1.2 Who is involved in the shipment process?
1.3 How does the company measure the effectiveness of its shipment process?
2. What are the goals of the company regarding its shipment process?
2.1 What is the ideal shipment process for the company?
2.2 What are the possible challenges regarding the goal?
3. What are internal bottlenecks regarding the delivery process of rental Mobile Crane and
Aerial Work Platforms to target customers in Oman?
3.1 What are the perceived internal bottlenecks?
3.2 Which possible factors might disrupt the shipment process to target customers in Oman?
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4. How do external factors have an impact on the shipment process of rental Mobile Crane and
Aerial Work Platforms from the company to the target customer in Oman?
4.1 Who are the main suppliers of the company?
4.2 What are the relevant characteristics of the products to be shipped?
4.3 What are the shipment regulations?
4.4 Which shipment services does the company work with?
4.5 What does the supply-demand for rental Mobile Crane and Aerial Work Platforms
market look like?
4.6 What are the relevant characteristics of the target customers?
5. What is the performance of the delivery of rental Mobile Crane and Aerial Work Platforms to
target customers in Oman?
5.1 What are the bottlenecks of the shipment time?
5.2 How is the delivery time of the shipment process (steps) measured?
5.3 How often was the delivery time delayed during the last six-month period?
5.4 What are the consequences of overdue deliveries to customers?
5.5 What are other relevant delivery performance aspects to consider?
6. What are possibilities to resolve the perceived bottlenecks or minimize disruption risks?
Aims and objectives.
The major aims and objective to enhancing for making this report to evaluating and
mapping the work process of Johnson Arabia shipment practice in Dubai and Oman as well
aas to seeking out their internal and external factor about what resources, procedure and
system involve in conducting effective shipment process. Along with due to Covid situation
it enhance better practice of work and regulation that arrives to not accomplish or implement
barriers in between Johnson Arabia revenue targets as in productive manner.
Research Structure.
As per the objective is having clarity that tend to begins more explore about what major
system of working in Johnson Arabia company where it faces many challenges and creates
their vision incomplete. It also enhance better accommodation of employees but due to
shortage of manpower the management team of Johnson Arabia not get to better generate
productive manner of outcomes. By taking example that in chapter two basic practical
analysis is enhance through literature review and reflecting delays of external and internal
factor thar propounded more scrutinize issues. Method is been used in the conducting of
research that prevails more opportunities and benefits which can optimise by the
management team of Johnson Arabia. By approaching of Primary and Secondary sources to
collecting information where both practice can bee used for evaluating facts and fining.
Another tools and techniques is determines by this as interview and survey which can better
option to evaluate better structure of research in positive manner.
Literature review
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Goal of the process: During the time of conducting the research, being researcher to ensure
and evaluate the information about better facts and findings that tend to compare with other
companies. It helps to making better productive outcomes can optimise as well as detailed
process to known for measuring the attribution of employees working style and what they
actually approach within their better expectation of profitability. Many methods and
technical process tools used to rectifying the goals and objective. By eliminating the threats
and conflicts before it creates implication in work process in negative outcomes. To
highlight major finding which can prevents more awareness towards Johnson Arabia for
their undergoes performance that they could not approach as per their target. For
questionnaire and other factor which enables about more positive and negative responses
that create better idea about how Johnson Arabica employees are facing situation in better
way or complexify. Through making final conclusion as well as productivity from
employees performance that enhance better opportunity to get over to attain in successfully
manner.
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2. RESEARCH METHODOLOGY
The aim of this research is to find out the obstacles of shipment delay in Johnson Arabia
Company through discovering the following themes: (shipment process, goal of the
shipment, internal factors, external factors, performance of the delivery and risk
reduction).Therefore, this research will be conducted by the primary research (making
interviews with employees from different positions within the company) to help Johnson
Arabia Company to optimize the shipment delivery time.
This chapter covers the research methodology and strategy that will be used while
carrying out the research. The first sub section will describe the data collection that
explains the type of the method that used in this research. The second sub section is
study population that focus on the target group of this research. The third sub topic is
sampling methods that explains about the interview’s questions and linked it to theories.
The fourth sub topic is sampling procedure and data processing analysis that emphasis
on how the data was measured. Finally, validity and reliability that clarifies how the data
is reliable and valid to this research.
2.1 Data Collection
In order to interpret the issue of delay shipment in Johnson Arabia Company, a
qualitative research method had been selected. The researcher utilized face-to-face and
phone call interviews as the primary data collection method. Interview is a technique to
ask open and close questions to different people to gain new information and views
about a certain topic (DiCicco‐Bloom & Crabtree, 2006). According to Gable (1994)
stated that the interview strategies are cost-effective and capable of easily
encompassing a large population interest. Furthermore, it is easy to understand the
interviewee’s point of views and get into their personal interactions. The disadvantage of
using this method is lack of time and it could be costly, employees have plans and their
time is scheduled to produce in the company (Opdenakker,2006). The researcher
should be able to ask and schedule the interview in the right time and place and people.
Therefore, making interview could be beneficial for this type of research, because it
investigates the reason behind the shipment delays in the Company. Furthermore, this
research focused on the Department of Supply Chain Management.
2.2 Study Population
A population is characterized as a study of all subjects within an entity, e.g. managers,
workers or units of study such as organizations that are the object of a study (Jennings,
2001). It is imperative to select a group of participants that share common
characteristics this will ensure effective research.
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The target participants for this study were from supply chain department. 100
employees working in this department that had experience more than 5 years. Most of
employees are between the 25 and 59 years old (Mulaokar,2020).
The employees were selected based on their experiences for this research: three
managers from the supply chain department. The first interviewee was an Executive
Manager for the Oman and Dubai sectors for cranes. He has 11 years of experiences in
the company and he is expert in the products. The second interviewee is …….
(complete it after the interview)
These categories of individuals were in a better position to understand what factors
were contributing to the delays in delivery as they were involved in the company’s
supply chain management.
2.3 Sampling Methods
This part will explain the translation from the interview questions to the theory what, why
and how. The sampling method of this research is structured interview questions that
include more than 50 questions and it is an oral and written questionnaire. The interview
is for the employees which consist of 30 questions, and 5 employees will be
interviewed.
It will be two ways communication that helps to understand the interviewee’s opinions
and to clarify any confusing. It will be linked to the following sub-questions and it will be
determined how it is related to this research. With the aim of conducting the interview,
structured questions had been arranged in different themes such as shipment process,
goal of the shipment, internal factors, external factors, performance of the delivery and
risk reduction. Nevertheless, the questions were not followed as expected, because
sometimes the participants do not cover a certain topic. However, it helps the
interviewee to talk openly without constrained way and give the researcher extra
information about the topic.
The first part of the interview consists of general questions for the participants in the
supply chain department. These questions were (How old are you, how long have you
been working in this company? what is your position). These questions will help the
researcher to gain more information about the interviewee’s knowledge, experiences
and background about the topic. According to Bolderston’s article (2012), it explained
that the participants who are interviewed need to have the necessary experiences to
back up the research’s information and have the ability to share their skills and
knowledge for the research. Therefore, the researcher selected the participants who
have more than 5 years experiences.
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