...ISSUES ON HIGH ABSEENTEISM AND DRIVER SHORTAGE Problem Statement The next problem that PHSB was faced is the high abseenteism and driver shortage. This is greatest challenge facing PHSB and not merely limited to smaller transport companies. With greater attention to operate closer to just-in time, the transport companies were pressured to deliver CPO to the refineries on time. Just-in-time operate under the concept of receiving raw materials, products and parts as they are needed, rather than days or even weeks before. This allows businesses to significantly cut inventory costs by having fewer unnecessary supplies on hand and far less material to store. As effective as just-in-time delivery is, it can be difficult to coordinate large amounts of shipments efficiently, especially when dealing with shipments that vary in size and destination. In using just-in-time delivery, the fact that most companies require drivers to be on the road for days at a time. And of course they will be tired after their stint. The irregular routes and the days away from home are difficult for many drivers. This leads to the high abseenteism and driver shortage because they need to be ready at all time regardless what they are doing. Other than that, the problem is the matter of remuneration package that these drivers are getting from PHSB. Since PHSB was a small family-owned company, it was unable to provide an attractive remuneration package to the drivers. The hardwork of PHSB’s drivers were...
Words: 987 - Pages: 4
