BRIEF BACKGROUND OF THE STUDY

In the developing countries, in the Malaysia production is used to be small business operation until it becomes the agricultural-based economic sector contributing significantly to the national economy. The issue that possess the industry is whether the utilization of internet technology in the Malaysia Palm Oil Industry (MPOI) and exploitation by industry participant using technologies in the logistic sites. The participants or workers acceptance to evolve the operation is less as where they prefer to conventional ways of managing their logistics. There a lots of effect that cause efficient and effective to the industry rather staying in old operation that referring to lack real-time information and experiencing the high cost of face-to-face interaction. The reason they avoiding using technologies as the internet facilities leading to slow speed of internet connection, resistance to change regular business method, ‘wait and see’ attitude among companies and the issue of internet security and trust among drawbacks that have discovered and discussed in many e-commerce studies. E-commerce appointed improvement in business logistics activities and assisted companies to carry out logistics activities electronically where cheap and in an easily accessible form. The operation provided real-time information to reduce cost on logistic activities such as distributing, storing and retrieving product. This system created ‘new channel’ for information flow, goods flow and new partnership across distribution channel. The application affects all elements in the supply chain that rely on data flow and to improve efficiency of deliveries activities along supply chain. The smooth integration of information flow based on e-commerce that improving tool to increase competitive advantage.

PROBLEM STATEMENT
This paper aims to investigate the utilization of Internet technologies in the Malaysian Palm Oil Industry (MPOI) and explore how the technologies have been exploited by the palm oil industry participants to manage their logistics activities. Many participants did not realise the potential of advanced Internet technologies in managing their business activities. Lack of understanding of advanced Internet technologies explains the low level of utilization of these technologies among the MPOI participants. Most of the participants were comfortable with conventional ways of managing their logistics activities.

RESEARCH QUESTION
E-commerce has become a catalyst for changes in business logistics activities and has assisted companies to carry out logistics activities electronically, which is relatively cheap and in an easily accessible form. By providing information related to logistics and other activities in real time; it helps customers to reduce costs related to logistics as well as search costs and costs of product offered. E-commerce has created ‘new channels’ for information flow, goods flow and new partnerships across distribution channels

Issues such as lack of awareness and skills, low level of understanding of computers and Internet connection, the linguistic diversity, feeling the lack of privacy and security, issues of the secure payment, preference for established relationships with trusted partners, and unwillingness to pay for on-line services. There are drawbacks of e-commerce in agriculture sector including the lack of high-speed Internet access, the prohibitive cost of implementation of e-commerce technology and a low level of computer literacy of farmers. Whether agriculture participants will employ advanced Internet technologies will actually depend on their willingness to cope with these issues.

CONTRIBUTION – THEORETICAL AND PRACTICAL
The impacts from technologies adapt the speed of distribution activities could improve compare conventional tools for satisfaction and fulfills customers need. They provides related information on the flow of goods and status order which helps the companies to conduct prompt delivery using the most reliable mode of distribution across the distribution channels that could exploited opportunities on digital platforms. Restructured physical distribution of good to take advantage of increased efficiencies in e-commerce to improve communication and information sharing between companies and other player in the supply chain that open entire new market for players. From enabling further integration with other business partners that allow access the same computerized databases. The reducing physical distribution cost partially through elimination of intermediaries if they choose not to outsource their logistic activities by being passive, cost absorbing function into strategic one. There is argued crumble for companies adapting e-commerce where needing faster, more responsive and demand-driven distribution operations in order to fulfill customer needs. The e-commerce helps to integrate key agriculture activities as warehousing, transport and marketing producers that refer marketers and consumers that lead to lower transactions cost between them. The market reaching improvement of convenient that reduced business transaction cost, transparency of market condition, increase of productivity and efficiency and coordination of supply chain.

METHDOLODY BRIEFING
A structured questionnaire (self-administered questionnaire) was used as a research instrument. Most of the questions in the questionnaire were closed-ended questions where a Likert-scale was used. The main respondents were the palm oil industry participants who were mainly involved in the downstream activities such as millers, refiners, oleochemical plants and exporters/manufacturers and most of these respondents have Internet connections. The participants were regarded as a representative sample of the MPOI participants being involved in Internet-based activities.

To achieve the validity of the questionnaire, a pilot survey was carried out where questionnaires were sent to different companies before the actual survey was carried out. The purpose of conducting the pilot survey is to ascertain feedback and information from the respondents and to scrutinize the weakness of the questions so as to increase the validity of the questionnaire.

ANALYSIS TOOLS AND INTERPRETATION
By the effort, the real-time information enables to assist business organization to perform online transactions with business partners, customers and suppliers. Regarding for providing company profile to customer and supplier via internet loosen cost to information searching. The company improving promotion strategy and customer service by using internet for their business to keep ahead of competitors using accurate information. They are able to select supplier faster and globally as to reach a wide range of new customer. In the other hand, they couldn’t assist having faster approval from government agencies and other is unable to keep track on status order, production and distribution of their company. The company is unable to gain benefit of online ordering and online payments using internet. A total of 58 out of 316 (18.4%) questionnaires were returned and used for the analysis. The result from the questionnaire survey reveals that 49 (84.0%) of the respondents have used the Internet whereas 9 (16.0%) of the respondents have not

Most of the MPOI participants (105 companies) in this study were low-level users who used basic Internet applications such as e-mails, web sites and Intranet for their business activities. Sixteen companies were categorized as medium-level Internet users while 15 companies were high-level users who used more complex applications such as online order monitoring systems, online trading and tracing, e-trading, and e-procurement. None of the companies used e-auctions for online business transactions.

The result indicates that 47 companies that they were able to have more accurate and timely information whereas 45 companies were able to have better communication and connections with their business partners, customers and suppliers. With fast growing Internet technologies and their applications, real-time information becomes an essential element to assist business organizations to perform online transactions with business partners, customers and suppliers. Another 43 companies was that they were able to provide information about their companies to the customers and suppliers. This would probably help the customers and suppliers to reduce cost related to information searching. The MPOI participants have also improved promotion strategy (37 companies) and customer service (37 companies) with the utilization of Internet technologies within their business. As information could easily be accessed by most of the customers and suppliers via the Internet, this has assisted the MPOI participants (33 companies) to keep ahead of competitors. The companies were able to provide accurate information, thus improving the competitiveness of their business. A total of 31 companies stated that with Internet technologies they were able to select suppliers faster and globally whereas another 35 companies were able to reach a wide range of new customers.

CONCLUSION
In their view of the internet function is minimal as the impact is limited and seeing reducing planning time for freight transport and distribution costs together on-time deliveries is increasing. By then, the delivery time is reducing and their fulfillment delivery rate increase by using internet. Through improving efficiency in logistic effecting faster response time, lower inventory level, improved order accuracy, better information management and cost saving. In the end, they rather conventional business application as it not really meant for logistic activities but it use mainly general as gaining time information and better communication and connection links. The participants are mostly preferable to traditional approach rather adopting and adapting e-commerce for their logistic activities. If they implement, they could maintain long-term survival of the company operation and increasing their competitiveness.