...CASE STUDY : PIRATES OF THE SILVERLAND (PALM OIL PIRACY) Company’s Introduction Palm Haul Sdn. Bhd. (PHSB) was a family-owned small and medium sized enterprise in the crude palm oil (CPO) transportation business located in Taiping, Perak. Established in 2002, it had about 200 employees which most of them were tanker drivers. On the average, PHSB transported 3000 tonnes of CPO from palm oil mills to the respective refineries that purchased the oil from oil palm plantation companies and cooperative mills. The company actually facing alarming problem with the quality of consignments to the refineries where the CPO either delivered short or contaminated with water or sludge. Statement of the problems Oilene refineries as one of PHSB’s major customer seriously affected by the bad consignments as they had to shut down the plant to clean out the sludge almost on a weekly basis and this was affecting their delivery timelines as well as the quality of the oil they produced. On top of that, there had been many occasions where the consignment delivered did not tally with amounts listed on the delivery orders. Oilene management had to decide whether to renew contract with PHSB which is due in June or to hire other CPO transportation company such as Tiger Oils Transporter which reported a more reliable transporter. Recommendations for Oilene 1. Contaminated CPO To overcome the problem caused by contaminated consignments that shutdown the eventually shutdown the whole production...
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...ACC 4291 INTEGRATED CASE STUDY TERM CASE THE PIRATES OF THE SILVERLAND (PALM OIL PIRACY) NAME: RAJA SITI AFIQAH BINTI RAJA AZMI MATRIC NO: 0826174 LECTURER: PROF. SHAMSUL NAHAR SECTION: 2 DATE SUBMITTED: 26th NOVEMBER 2012 SUMMARY OF THE CASE Established in 2002 in Taiping, Perak, Palm Haul Sdn Bhd (PHSB) was a small and medium sized enterprise in the Crude Palm Oil (CPO) transportation business. PHSB was managed by En. Rossly, the Chief Executive Officer which is also the son-in-law of PHSB’s founder, Datuk S. Najeed. Like the other transport companies involved in the business, PHSB also faced problems with its drivers embroiling in oil piracy. Transport companies are naturally will held the responsibility for such thefts as they usually take place under their watch and these companies are bound to compensate the refineries for such losses. The culprits involved frequently tanker drivers, depot operators and transporters. One of the major customer of PHSB, Oilene Refineries (Oilene) complaint about the quality of the CPO delivered by PHSB and its later impact on Oilene’s failure to fulfil their customer orders. This is because of the practice of siphoning CPO and adulterating the consignment with water, used oil or sludge was so uncontrolled that a number of PHSB’s customers have threatened to change their custom to other more reliable transport companies. Besides that, profits for the first quarter of 2009 had drastically decrease compared to the same...
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