Analyzing Sabah Furniture's Logistics for Export and Retail Contracts

This report provides a comprehensive analysis of Sabah Furniture's logistics operations, focusing on its export processes and supply chain management. It begins with a process map of the current export procedures, followed by an assessment of how the supply chain can be realigned to create more value for the company, including defining a clear corporate strategy, identifying supply chain-enabled areas, aligning performance metrics, optimizing supply chain structure, aligning incentives, and continuous strategy refreshment. The report then identifies potential risks in the supply chain when meeting international retailer requirements, encompassing supply, demand, and operational risks, as well as external factors like ecological, geopolitical, financial, and technological influences. Finally, it explores how Sabah Furniture can modify its logistics processes, specifically focusing on transportation, mode determination, and transporter relationships, to successfully fulfill contracts with international retailers. The report utilizes various sources and frameworks to provide insights into optimizing Sabah Furniture's logistics for improved efficiency and profitability.

Logistics: Work place simulation, Case study of Sabah Furniture
(SF)

Table of Contents
ASSESSMENT ACTIVITY 1.1 Develop a process map for Sabah Furniture exports........................................3
ASSESSMENT ACTIVITY 1.2..........................................................................................................................5
How could the supply chain be realigned to develop more value for SF.....................................................5
Define and communicate a clear corporate strategy...............................................................................5
2. Identify the areas of your corporate strategy that are enabled by the supply chain .........................5
3. Align supply chain performance metrics with the corporate strategy................................................5
4. Structure your supply chain to optimize the strategic goals................................................................6
5. Align incentives end to end.................................................................................................................6
6. Keep refreshing the strategy and alignment process...........................................................................7
ASSESSMENT ACTIVITY 1.3..........................................................................................................................7
The risks that may occur in the supply chain to meet the potential international retailer’s requirements.7
ASSESSMENT ACTIVITY 1.4..........................................................................................................................9
How could SF change its logistics processes to successfully deliver the contract for the international
retailer.........................................................................................................................................................9
Bibliography...............................................................................................................................................11

ASSESSMENT ACTIVITY 1.1 Develop a process map for Sabah Furniture exports
Distribution Sequence:
Currently Sabah Furniture operates with the above depicted process flow technique. But this kind
of operation is optimal because it is well structured. The distribution sequence to the customer is
right from the dispatching of shipment. The order so placed is collected from the dispatch yard

and provided to the customer at the specified time. The logistics have to play this role of
distribution of inventory.
ASSESSMENT ACTIVITY 1.2
How could the supply chain be realigned to develop more value for SF
Define and communicate a clear corporate strategy.
One of the greatest failure points in aligning strategy is the point at which the supply chain
organization doesn’t realize what to align with. Strategies can’t be excessively restricted and
failing to consider and organize all the market prerequisites and components on which members
contend (highlights, value, conveyance, and so on (Gbadamosi, 2013). Sabah Furniture is trying
to develop a strategy which shall help in aligning the supply chain with business activities. The
dependency of company is more on shipping agents because they are mediators between
production and sales. If shipping agents step back in the middle of operations execution then the
desired shipment might not reach respective locations. Corporate strategy defines a clear
conception regarding goals and direction in which Sabah Furniture or any other organisation
shall be functioning. The operations can be effectively managed if clear communication of
corporate strategy takes place. SF should apply these qualitative principles so that effectiveness
is achieved.
2. Identify the areas of your corporate strategy that are enabled by the supply chain
Sabah Furniture has enabled corporate strategy in the outsourcing operations of the supply chain
and also in the management of goods at different destinations. It is important for the company to
develop a corporate strategy which enables supply chain. Objectives are the primary steps which
help in understanding the areas which can work as highly competent for Sabah Furniture.
Despite of the fact that there is more reliance or dependency of Sabah on foreign contract labour,
the company must develop a corporate strategy with objectives that aim to eradicate this

dependency and bring in more support in terms of domestic and accountable labour. The
objectives should also indicate towards appropriate pricing and consequent reduction in
transportation costs.
3. Align supply chain performance metrics with the corporate strategy.
Supply chain performance metrics provides an insight regarding performance of employees and
the company when it comes to supply chain. Sabah Furniture. With an aim to integrate or
become an outsourcing partner with an international retailer, Sabah Furniture requires a good and
efficient supply chain. The objectives and goals which have been devised by Sabah Furniture
when utilised in the corporate strategy automatically help in aligning the performance metrics for
supply chain. A directional flow is achieved for all the operations through objectives of the
corporate strategy.
4. Structure your supply chain to optimize the strategic goals.
Supply chain arrange, areas, provider choice and business terms, stock and arranging strategy,
hierarchical structure are some of the key elements that need to be considered by Sabah Furniture
before implementing the corporate strategy . Supply chains that are improved for cost
effectiveness will look not the same as supply chains that are advanced for adaptability and
responsiveness (Nijssen, 2001). The company Sabah Furniture can use hierarchical structure in
administering the supply chain. Initiating with manufacturing and ending up with administration,
the entire supply chain has to be divided accordingly. It helps in optimising the strategic goals.

5. Align incentives end to end.
Performances are subject to evaluation when respective organisation considers monitoring and
evaluation of efficiency. The use of incentives helps in motivating the employees to a great
extent and also results in positive impact over performance. SF must Construct a vigorous
S&OP process and drive deals and advertising groups with destinations that aren't inconsistent
with supply chain goals. One normal disappointment is when company deals and advertising
have no impetus to control stock. SF will overdrive the gauge to ensure accessibility and
afterwards the supply chain organization is left with the abundance stock.
6. Keep refreshing the strategy and alignment process.
Most organizations have key arranging cycles of one to three years, yet we have seen
organizations that actually go decades without re-aligning their supply chain technique. SF
should implement the supply chain technique on an indistinguishable calendar from the extra
funds and resources which remain unused after allocation. SF can utilise the aforementioned
suggestion for amending the supply chain process and the only attribute for consideration is
alignment of goals and objectives.
ASSESSMENT ACTIVITY 1.3
The risks that may occur in the supply chain to meet the potential international retailer’s
requirements
The intricacy of supply chains requires an appraisal of the sorts of risks included and the related
elements that may bring about them. The risks are interrelated:
Supply Risks. Impacts components of inbound supply, inferring that a supply chain can't take
care of the demand as far as amount and nature of parts and completed merchandise. The result is
named as a supply interruption. There is a great risk for the company when it comes to

uncertainty in shipping by the shipping agents. The time taken for an order to reach from
Malaysia to Europe is 1-2 months. Sabah Furniture shall suffer losses if there is negligence from
shipping agent's side.
Demand Risks. Impacts components of the outbound supply chain where the degree or change of
the request is sudden. This is marked as request interruption. Sabah Furniture manufactures the
goods only on demand basis and these are termed as customer orders. The risk from fluctuating
demands is quite less because on time production and delivery of the items is used as the
principle technique by Sabah.
Operational Risks. Impacts components inside an inventory network, hindering its capacity to
supply administrations, parts, or completed products inside the standard prerequisites of time,
cost, and quality. Transportation is a standout amongst the most notable operational hazard.
Currently Sabah Furniture is witnessing a continuous delay in the delivery of orders with about
2-3 days of time. The reason behind this kind of negligence in processing is due to lack of
physical place for managing containers and shipments. Sabah Furniture shall loose its clients and
customers if there is no proper solution provided to this issue.
The most noteworthy variables affecting supply chain risks are natural, geopolitical, financial,
and mechanical. Each variable has a likelihood of bringing on disturbances inside worldwide
supply chains (communicated by an overview of 400 officials performed by the World Economic
Forum and Accenture), extending from high to low (Eric, 2002). The principle elements are:
Ecological. Thought to be that components that have among the most astounding likelihood of
event and that can be the minimum successfully relieved since they have a tendency to be wild.
Cataclysmic events (e.g. quakes) and outrageous climate are inside this classification, including

potential ocean level ascents. Pandemics are likewise plausibility, yet their likelihood and
moderation stays dubious.
Geopolitical. A few geopolitical elements have a tendency to have a high likelihood, specifically
clashes and exchange limitations, however supply chain on-screen characters affect the result.
Financial. The most critical monetary variables identify with request stuns, frequently connected
with political or financial sudden changes. Value unpredictability is likewise a worry since it
importantly affects input costs. The fluctuations in exchange rate is also an a risk factor because
it results in significant changes in financial strategies and shipping processes.
Innovative. Transport framework disappointments are genuinely uncommon, so the most striking
mechanical concern includes ICT interruptions (Nijssen, 2001). As supply chain administration
progressively depends on data innovations for its administration and operations, any data
framework disappointment has imperative repercussions.
There is a possibility that the shipping agent of SF backs out or runs out of proper resources to
trade, this implies that company might not have an appropriate shipping agent to ship the
furniture. In these cases, it is important to keep a back-up so that the distribution process is not
hindered.
ASSESSMENT ACTIVITY 1.4
How could SF change its logistics processes to successfully deliver the contract for the
international retailer
Transportation is an extremely key component of the logistic procedure and the supply chain
which keeps running from merchants through to the company to your clients. It includes the
development of item, administration/speed, and cost which are three of the five key issues of

compelling logistic. It additionally impacts with the other two logistic developments of data and
mix inside and among providers, clients, and bearers.
A transportation methodology, to be compelling in supply chain administration, is not playing
one transporter off against another. It is not reducing the rates. Or maybe it is an approach to
react to the elements of your business, its clients, providers, and operation.
The system, paying little heed to whether the company is included with household or worldwide,
is substantially more and ought to perceive
Client necessities. The supply chain includes consistent and effective development of item from
seller to maker to client. Along these lines the transportation program must reflect and meet the
client’s needs. The time and administration parts of transportation are crucial.
Shipments must move auspicious (Eric, 2002). Clients request their shipments be conveyed as
they require- - on the date required, by the bearer favored, in the best possible transportation
bundling technique and finish, both dispatched finish and conveyed finish and in great request.
Having the capacity to have a transportation program with can do this gives consumer loyalty
and can give your organization an upper hand. SF should consider evaluation and analysis of
client demands and then apply it in the process flow so that more satisfaction can be achieved.
Mode determination. Stock and administration which is required for processing the orders is
considered as mode determination. The company has to bear excessive costs in terms of
inventory when shipment is delayed. The mode through which entire distribution takes place
must be determined and effectively selected by SF so that loss of financial resources doesn't take
place.

Transporter connections. Volume makes transporter/forwarder consideration. Regardless of the
possibility that the company have no procedure, the quantity of transporters attempting to meet
with the company will make the company create one. Rare delivery manages another approach.
SF should maintain good connection with the transporters this shall help in better administration
of delivery and effortless transportation of goods.

Bibliography
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Nijssen, E. (2001) Creating Customer Value Through Strategic Marketing Planning, New York:
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