Challenges Faced by Logistics and Supply Chains in Malaysia

Logistics and supply chains are vital to the success of any industry and economy. Their contributions ensure the rapid and efficient distribution of items and products all over the world. Logistics and supply chains control the forward and reverse flows of goods and services; these flows may either go towards the origin or recipient. 

The development of logistics has made the process of warehousing much simpler for many. Logistics and supply chains even contribute to reducing the unemployment rate by providing the market with many jobs.

 

Significant challenges that hinder the growth

Just like any other line of work, there are significant challenges which logistics and supply chains in Malaysia must overcome.

  • The implementation of regulations related to logistics in Malaysia has often been uncoordinated; this lack of coordination has also hindered the optimal function of logistics and supply chains. These current negative trends have thus caused several difficulties within Malaysia’s logistics and supply chains to arise.
  • Managers of logistics and supply chain networks across Malaysia are often less knowledgeable about logistics and supply chain strategies than are their counterparts abroad. This poses a challenge because their relative lack of knowledge often harms the potential of firms’ market expansion. 
  • The reduced expansion potential makes high-level cooperation between logistics and supply chain companies as well as other firms more difficult. This reduced level of knowledge among managers also makes the establishment of supply chain systems less efficient. The less efficient a supply chain system, the less flexible it will be. The system will also incur higher costs.
  • Forecasting inventory. Malaysia’s economic condition has historically been relatively unstable. As a result, most of the country’s consumers tend to exhibit inconsistent purchasing patterns. This volatility of demand has therefore made it much more difficult for supply chain managers to accurately forecast inventory. The more accurate the forecasts, the better the level of customer service that can be provided. Accurate forecasts will ensure that customers will receive exactly what they intend to purchase without the risk that their desired item will no longer be in stock. 
  • The growth of e-commerce has forever changed the procedures and processes of logistics and supply chains around the world, including in Malaysia. More orders than ever before are coming from the e-commerce sector. This has caused many of Malaysia’s logistics companies to struggle to fulfill the demands imposed by this sector due to a lack of resources and technological development. 

 

Join Ranaco Education & Training Institute, together we overcome the challenge.

Obviously, these challenges need to be overcome. And who better to overcome them than a competent, skilled graduate of Ranaco Education & Training Institute’s Diploma in Logistic & Supply Chain? Every student of this course receives comprehensive instruction and training about optimal strategies and methods involving logistics and supply chains.

A course of two-and-a-half years, it has a duration of seven semesters and includes industrial training. All students will be thoroughly educated on matters including procurement and supply management, international trade, supply chain performance measurement, transportation management, and warehousing management. 

This knowledge will prepare them for a thriving career in the logistical field which may be related to warehousing, inventory, shipping, distribution, or even exports and imports.

While a career in logistics and supply chains is undoubtedly challenging, it is also extremely rewarding and a vital contributor to the economy of the country. If you’re interested, contact us at Ranaco Education & Training Institute now – we’d be happy to have you here with us.

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Contacts

PT 4568,  Jalan Bengkel 1,

Kawasan Perindustrian Jakar II,

24000 Kemaman,

Terengganu, Malaysia

Tel: +609 850 3161
Tel: +609 858 4623