Effective Communication Systems for Malaysian Logistics Industry

Available online at www.sciencedirect.com ScienceDirect Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 INCOMaR 2013 Effective Communication Systems for Malaysian Logistics Industry Mokhtar Muhammad*, Suhaimee Saahar@Saabar, Haliza Hasan, Ahmad Faisal Mohd Fiah, Antashah Mohd Nor MITRANS - Universiti Teknologi MARA, Shah Alam, 40450, Selangor, Malaysia Abstract The logistics industry is an ever growing industry not only in Malaysia but also in other parts of this world. Rather than being viewed as a supportive industry to other functional areas previously, now, logistics has been regarded as a strategic industry on its own. In the Asia Pacific region, the potential for growth is very promising. Logistics has emerged from merely a supporting activity that facilitates trade to a crucial sector by which the nation's competitiveness is measured. In other countries especially highly advanced countries such as United States of America and United Kingdom, logistics had already become prominent and acknowledged as a critical factor of competitive advantage and the increasing importance is due on the expansion of the international trade as well as the globalization strategy of companies in their respective business and Malaysia has no exception on this particular issue. To make sure logistics industry together with supply chain management comply with the needs of current trend in the industry, they need complete support system and one of the system is the communication system. Effective communication system is one of the crucial elements in making a smooth operations in logistics industry. This study was conducted to explore key issues related to communication systems in logistics industry. Three objectives were set, firstly to find out communication method that practiced among parties involved in logistics industry. Next is to identify patterns of communication network practiced by the main parties in the logistics industry and last but not least to identify the current problem of communication channel used in terms of disseminating information to all parties in logistics industry. The research found that good communication flow and devices is crucial in logistics industry. There are certain devices are identified as “must have” in logistics industry such as mobile phones and the research also found that most of parties involved in logistics process can be considered as technology-savvy as far as communication is concerned. This research concludes that, communication and information technology is crucial for logistics industry, therefore those who suppose to provide right from infrastructure to human capital must cope with latest needs and rapid development in both aspects. © 2014 2014 The The Authors. © Authors. Published Publishedby byElsevier ElsevierLtd. Ltd.Open access under CC BY-NC-ND license. Selection and and peer-review Committee of of INCOMaR 2013. Selection peer-review under underresponsibility responsibilityofofthe theOrganizing Organizing Committee INCOMaR 2013. Keywords: information technology ; communication; logistics * Corresponding author. Tel.:+6-03-55444860; fax: +6-03-55444861 E-mail address: [email protected] 1877-0428 © 2014 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license. Selection and peer-review under responsibility of the Organizing Committee of INCOMaR 2013. doi:10.1016/j.sbspro.2014.04.025 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 205 1. Introduction Logistics industry is one of the catalysts for the development of industrialisation in Malaysia which is linked to the international trade. The performance of the industry will have an impact on the progress of the nation’s industrialisation and its competitiveness in international trade. The development of logistics management has facilitated production and distribution processes and created more access to the global market. Logistics is widely defined as a backbone to the economic development. It means that a good or systematic logistics system applied in certain organizations will bring good impacts to the organization and definitely could increase their competitiveness among competitors. Thus, up to a certain level, the healthy competitiveness could bring developing countries to stand at the same standard as developed countries. The transport industry in Malaysia, comprising of land, sea, air and pipelines has gone through numerous changes especially in the 1990s in terms of infrastructure facilities, operators, equipment, manpower and operating systems. Nevertheless, there was no cohesive and comprehensive transport policy guiding the industry, but some mode-specific policy statements were made on ad hoc basis. Two main contributors to the development of the local transport industry are industrialization and international trade. These two key factors are complementary in nature and created the necessary demand for transportation and logistics services (Salina, 2004). Rapid economic development greatly affects the logistics industries in this country. Large-scale economic concentration and weight have a positive impact on the development of logistics industry in the country. Necessity for logistics industry such as water, land and air has opened a new opportunity in this sector. In the early 1980s, the Government took several measures to develop selected heavy industries such as iron and steel, petrochemicals, cement and automobile with the objective of strengthening the industrial base and further develop our capabilities in the manufacturing sector. As a result, the manufacturing sector’s share of GDP rose to 33.1% in 1995 (Salina 2004). 1.1. Problem statement Research conducted by Ali et al (2008) on the logistics industry in Malaysia found several constraints that limit the logistics development in this country. Among the constraints were lack of follow up actions after certain meetings or issues raised, lack of sophisticated management techniques among the supply chain companies, problems in information technology (IT) system with regard to the (1) costly EDI pricing and charges due to in transparent marks-up by freight forwarders and (2) overall performance and functionality of the system, lack of skilled and trained manpower, no single established source of logistics data and information including lack of information of the industry players, facilities, services and capabilities of the sectors, lack of research and development of the industry, lack of regulatory forms to facilitate the industry, lack of dissemination of information with regard to the development and expansion of the logistics industry. This information was important because through the information obtained, the practitioners could then suggest on how they could participate in the new business opportunities (Thong, 2007). Also, one of the main problems faced by the local service providers is the inability to participate in international logistics activities as a result of limited IT linkage, overseas corporate network and capital investment (Ibid). Logistics plays a vital role in economic systems and in everyday life. Given the significant cut back in manufacturing and labour costs, reducing logistics costs has become an increasingly important task for managers. On account of the complex supply chains and globalization, the cost of logistics operations could comprise as much as half the value of general commodities. However, technological development offers new cost cutting opportunities (Dianwei 2006, 591). According to Bowersox, Rodrigues & Calantone (2005), global logistics costs in the year 2002 were estimated at USD 6,732 billion, and corresponded to 13.8 per cent of the world’s GDP in 2002 (Bowersox et al. 2005, 9-10) .The level of logistics costs is heavily dependent on the industry, but in general tends to be high in logistics-intensive operations such as food, metal, chemical and paper manufacturing (Memedovic et al. 2008; Farahani, Asgari & Davarzani 2009, cited in Rantasila and Ojala 2009). 206 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 1.1.1. Research outcomes In this study, there are three expected outcomes: (1) to propose proper the right communication method that shall be practised in order to enhancing delivery system in logistics industry, (2) to enhance the levels of communication efficiency among industry players of logistic industry and (3) to rectify current problems that occur in communication channel that affecting information dissemination in logistics industry. 1.2. Literature review Study conducted by Pokharel (2003) mentioned that a good communication system helps to execute activities faster, support autonomous decision-making processes and enable distribution operation, in order to achieve higher logistic efficiency, meet customer service level and reduce cost of operation by as much as 50 per cent of overall logistics cost over the traditional business practice. Singapore Logistics Company provides many types of product and industries with multiple logistics function. If the types of products are higher, then higher levels of ICT implementation are needed, but the importance and consumption of ICT are different according to the size of company and the availability of technology. Transportation and warehousing are the major cost factors in logistics services. Thus, by increasing information and communications technology (ICT) level can helps reduce the costs. In transportation, ICT is functional as information transfer, route and mode planning, picking and delivering, electronic identification, mobile communication, physical automation, managing claims, and tracking and tracing. This related activities can be achieve by using transportation management system (TMS) through ICT network. The system dispatcher producing by decreasing the paper work, reduction in turnaround time through efficient communications with the warehouse and providing real the date for the use by management. In warehousing, information on product design; assembly, packaging, kitting and consolidation and weight, and volume of stored product by type and cost of inventory are necessary. These related activities can be facilitated through the warehouse management system (WMS) through ICT to enhance inventory utilization, customer support and value added. In conclusion, this article show that the adoption of ICT by multiple size of company are importance to increasing operational efficiency, decreasing data entry error, decreasing cost, and increasing customer service level. Feraud (1998) carried out a research to see the similarities between the strategic management of information technology and information technology management through the use of in-depth interview. Logistics management and information systems (IS) management offer a lot of similarities, and extensive research in information technology (IT) management (Feraud, 1997) has confirmed the importance of logistics to achieve IT-enabled competitive advantage. According to this study, the use of IT is widespread among companies and more recently known as the "strategic management of information technology (SMIT)." According to Porter and Millar (1985), the competitive analysis theories and showed that IT can provide five main ways of enhancing advantages of the following: 1) Taking advantage of the modifications in the nature of the industry, through the information content of both the value chain and the product; 2) Changing the nature of competition through a modification of competitive pressure; 3) Creating a completely new competitive advantage through cost reduction or enhancement differentiation; 4) Modifying competitive scope, and 5) Creating new activities. In this study, they had to take two examples to see the relation between SMIT and logistics, which is kind of strategic trust and industry fields. From the results of the study, the most frequently mentioned is the link between IS and management strategic. "At present, information-systems management is the domain which has the strongest synergies with logistics" (Fabbe-Costes and Colin, 1994, p.40). In addition, it was found, the logic of the strategic management of IS and strategic logistics are very close and complementary which strategic logistics consist in imagining and developing strategic actions that would be impossible without strong logistics competencies. From being seen first as a key factor for success, logistics is becoming a fully competitive advantage (Cooper, 1994, p.38). Therefore, to see a competitive advantage through logistics, two large companies in European are selected which one company operating in a beverage industry, and another in the chemical industry. In this study, the company responsible for the management of logistics and another one responsible for a logistics Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 207 management and IS management. In the beverage sector, logistics plays an important role in the function of procurement, planning, distribution and customer service. In this division, IT is seen as a complement in which without IT, logistics cannot function properly, where IT is defined as "in addition" but is intrinsically necessary. IT is used in many ways and can be divided into: 1) For market surveys, to share the load between all the different factories in the system to leverage volume, and devices such as the internet are used to gather information on raw materials, their process and availability. 2) Integrated systems such as the MAP system or the DMS (demand management system) help to plan inventory levels in accordance with the demands of the customers. 3) In transport, the location of the shipments helps both the beverage manufacture and its customers to gain precise knowledge on the estimated arrive time and the according actions to be launched. Meanwhile research conducted by See (2007) focused on the integration of logistic management with information and communication technologies. To improve the effectiveness of logistic fleet operations. The work presented here shows a real-world fleet management system that integrated mobile communication and supports real-time logistics information and supports real time information. Modern logistics system requires real-time monitoring and interaction with fleet vehicles to attain high fleet utilization and provide fast response to customers need. The technologies that support these real-time logistics requirements are mobile communication global positioning system (GPS), geographical information system (GIS) and embedded real time system design and implementation technologies. This paper also looks the real time fleet management system (RTFMS) communication technology furnished by GPRS and 3G data is wireless mobile can be organized to furnish directional information transfer amongst logistics fleet management centre and all vehicles in the fleet. The architecture of RTFMS focuses on providing an integrated mobile and static communication flow for the fleet dispatching management and cargo delivery status information. To development of logistics fleet management solutions, each vehicle in the fleet needs to have a MDT installed to establish wireless virtual connection between vehicle and enterprise fleet management centre. Enterprise fleet managements centre. Enterprise needs to construct an information technologies infrastructure that integrates and provides various users. To reduce the workload of vehicle driver the communications control, sensor data acquisitions and providing easy reading message display and simple driver interactions. This kind of on board device has been called MDT.MDT helps the dispatching centre in presenting the message to the driver, support from the digital map and the GIS software. Considering the technologies profile of the MDT, there have been two categories of MDT implementations is personal digital assistant (PDA) from consumer sector. Personal organizer provided on Microsoft pocket PC or PALM OS. GSM, GPRS and 3G (third generation) communications provide several alternatives of mobile data communications services. In this study service interaction are being based on the internet infrastructure, the future works in this direction would be investigating in composing the logistic fleet managements services. The timing considerations for each route of information flow have been clearly indentified and addressed. The consideration for the selection of vehicle borne data terminals and the mobile communication technologies have been presented with associated technologies profiles. 2. Methods This research is a quantitative research. Respondents of this research merely come from logistics industry in Malaysia. Those who are actively involved in logistics industry considered as the best targeted participants. However, since the research team unable to obtain the exact population for those involved in the logistics industry, this research uses ‘convenience sampling’ sampling method as its methodology. 2.1. Sampling Size Total of 950 questionnaires were distributed in this research where 250 sets were distributed during the first stage and 50 of them were rejected. During the later stage of research another 700 set of questionnaires were distributed and only 9 sets were rejected. Those respondents came from 3 main regions which were Central Region (Kuala Lumpur and Selangor), Northern Region (Pulau Pinang) and Southern Region (Johor). Those 3 regions are selected because those regions considered as main cities in logistics and has whether airports or ports. 208 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 3. Results Table 1. Distributions of Respondents based on The Department Group Department Group Frequency Percent Logistic (Operation & Forwarding) 328 47.5 Admin (Account & HR) 264 38.2 Warehouse (Storage) 99 14.3 Total 691 100.0 The respondents are from three major departments, namely the logistic department (47.5%), administration department (38.2%) and warehouse department (14.3%). Based on the researcher understanding after consulting various experts in logistics industry, it is understood that these three departments are most common in any logistics company especially big companies. Table 2. Distributions of Respondents based on The Age Group Age Group Frequency Percent <31 yrs 408 60.18 31-34 yrs 227 33.48 >34 yrs 43 6.34 Total 678 100.00 In terms of age, the respondents are comprised of younger middle age workers in which majority of them (93.66%) are less than 35 years old. The distribution of gender is almost even with 51.17% are males while 48.83% are female. Table 3. Distributions of Respondents based on Gender Gender Frequency Percent Male 349 51.17 Female 333 48.83 Total 682 100.00 209 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 RO 1 : To find out communication method that practiced among parties involved in logistics industry. Based on table 4, respondents were asked a series of questions covering the first objective of this study, which is, to find out communication methods that practiced among parties involved in the logistics industry. There are eight questions were used to measure the communication method used by the respondents in this study. Table 4. Communication methods and its usage by those involved in logistics process. Usage Status The effectiveness (efficiency) of communication tools (methods) in enhancing the delivery/ Communication process The usage of communication tools has helps your organization in enhancing the logistic process The usage of communication tools has increased the level of customer satisfaction The usage of communication tools has helped the organization in meeting its logistic goal The usage of communi cation tools has improved staff competen cy The usage of communicatio n tools has help enhancing the communicatio n process Mobile Communication 4.25 4.1 4.18 4.25 4.2 4.17 4.19 SMS 3.84 3.79 3.87 3.9 3.88 3.82 3.94 BBM 3.22 3.42 3.59 3.65 3.67 3.6 3.67 Email 4.03 3.97 4.05 4.1 4.08 4.05 4.04 Intranet/ Extranet 3.74 3.79 3.87 3.89 3.93 3.9 3.89 GPS (tracking and tracing) 2.93 3.24 3.46 3.43 3.47 3.49 3.48 Hand-held (walkie talkie) 2.72 3.03 3.37 3.26 3.34 3.35 3.37 PA System 2.53 2.86 3.15 3.08 3.16 3.18 3.24 Based on the first question, respondents were asked to rate the degree of usage of communication tools used by them. Based on the finding, the highest mean for this question is 4.25 (mobile communication), the second highest is email (4.03), followed by sms (3.84) and the lowest is PA system (2.53). From the finding, it is clear that mobile communication is the main communication tools used by the respondents in their daily works. Followed by email and sms. Three tools were identified at the level of frequent use only which is GPS (2.93), Handheld (2.72), and BBM (3.22). Meanwhile, the PA system was seldom used by respondents in this study. Based on the third question, the respondents were asked to rate the usage of communication tools in enhancing the logistics process. From eight tools that were tested, the highest mean for this question is mobile communication (4.10), second is email (3.97), third is sms and intranet/extranet (3.79), fourth is BBM (3.42), fifth is GPS (3.24), sixth is hand-held (3.03) and the lowest mean is PA system (2.86). From the findings it is clear that most of the respondents were agreed that mobile communication is the main tool to help them to enhance the logistic process in their work. It is followed by email, where it is the second communication tools agreed by the respondents that can help them to enhance their works. The respondents also disagreed that PA system can help them in their work. Two tools were identified by the respondents as neutral in terms of usage that can help them to enhance the logistic process which is GPS and Handheld. 210 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 Table 5. Main purpose of communication methods Mobile Communicati on SMS BBM Email Intranet / Extranet GPS Handheld PA System N 86 % 9.2 N 62 % 8.1 N 44 % 6.9 N 124 % 13.7 N 83 % 11.1 N 82 % 12.5 N 44 % 7.9 N 43 % 8.3 81 8.7 73 9.5 51 8.0 81 9.0 66 8.8 89 13.6 110 19.0 63 12.1 33 3.5 28 3.7 67 10.5 139 15.4 147 19.6 64 9.8 75 13.4 88 17.0 532 56.9 432 56.4 333 52.3 271 30.0 197 26.3 103 15.7 117 20.9 110 21.2 47 5.0 37 4.8 43 6.8 49 5.4 51 6.8 48 7.3 86 15.4 118 22.7 Managing Claims 75 8.0 70 9.1 57 8.9 155 17.2 73 9.7 37 5.7 32 5.7 35 6.7 Tracking & Tracing 81 8.7 64 8.4 42 6.6 84 9.3 132 17.6 231 35.3 95 17.0 62 11.9 935 100 766 100 637 100 903 100 749 100 654 100 559 100 519 100 Route & Mode Planning Picking & Delivering Electronic Identification Mobile Communicati on Physical Automation TOTAL Based on question 2 (research objective 1), respondents were asked the purpose of usage. There are eight communication tools and seven of usage that respondents have to answer. From the table above, it shows that from 935 respondents that used mobile communication the top usage of this tool is for mobile communication purpose (56.9%), second is route 9.2 %, picking and delivering; tracking and tracing 8.7%, managing claims (8%), physical automation 5% and electronic identification 3.5%. Based on the finding, it clearly show that for SMS, the top main usage for this tool is for mobile communication usage (56.9%), second is picking and delivering (9.5%), third is managing claims (9.1%), fourth is tracking and tracing (8.4%), fifth is route and mode planning (8.1%) and the final one is for physical automation usage (4.8%). For BBM, the main top usage is for mobile communication purpose (52.3%) and the lowest for BBM is tracking and tracing (6.6%). For email the top usage is mobile communication (30%) and the lowest usage is picking and delivering (9%). The highest usage for Intranet/Extranet is for electronic identification mobile communication (26.3%) followed by electronic identification 147 (19.6%), third is tracking and tracing 132 (17.6%) and the lowest usage is for physical automation 51 respondents (6.8%). Based on the finding clearly show that most of the respondents were agreed that all communication tools that had been listed to them is mainly for mobile communication purpose. 211 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 RO 2: To identify the patterns of communication networks practiced by the main parties in logistics industry. Usage Effectiveness Incompetent skills Difficulty of Understanding Accessibility Language Factor Time Factor Disaster/ Hazards Table 6. Patterns of communication methods usage Computer 4.31 4.76 3.24 3.12 4.06 3.84 3.79 3.50 Internet/ intranet/ extranet 4.22 4.71 3.21 3.07 4.03 3.79 3.74 3.49 Wireless communication/ radio frequency system (including mobile phones) 4.10 4.58 3.16 3.11 4.07 3.77 3.86 3.48 Financial (accounting) system 3.88 4.45 3.36 3.25 3.79 3.62 3.72 3.30 Bar coding & scanning 3.63 3.84 3.36 3.19 3.63 3.52 3.67 3.27 Electronic data interchange 3.60 4.00 3.36 3.25 3.63 3.52 3.63 3.31 Vehicle routing 3.55 3.83 3.32 3.24 3.60 3.49 3.53 3.37 Transport management system 3.64 3.95 3.29 3.23 3.61 3.49 3.54 3.43 Warehouse management system 3.54 3.84 3.23 3.19 3.56 3.47 3.49 3.50 Enterprise resource planning 3.33 3.45 3.24 3.34 3.44 3.34 3.38 3.41 Hand-held/ on-board computer 3.24 3.30 3.17 3.29 3.34 3.25 3.35 3.34 Global positioning system 3.17 3.14 3.12 3.25 3.28 3.23 3.29 3.32 Automated guided vehicle 3.13 3.03 3.13 3.24 3.23 3.15 3.24 3.31 Automated storage & retrieval system 3.19 3.11 3.14 3.26 3.29 3.21 3.28 3.30 Based on the table above, the respondents were asked eight questions to identify the second objective of this study, which is, to find out the patterns of communication networks practiced by the main parties in logistics industry. Based on the first question, respondents were asked to rate the degree of usage from 14 listed communication tools. Based on the finding, the highest mean for this question is 4.31 (computer), the second highest was an internet/intranet/extranet (4.22), followed by the wireless communication (4.10) and the lowest is the automated guided vehicle (3.13). From the finding, it is clear that computer is the main communication tools used by the respondents in their daily works. The second question, the respondents were asked to rate the effectiveness of communication tools in their daily works. The research found that the computer is still the highest mean score of 4.76 recorded, followed by internet/intranet/extranet (4.71) and the wireless communication (4.58). The automated guided vehicle (3.03) was the lowest mean and less effective compare to the other communication tools. The third question, the respondents were asked to rate the incompetent skills of communication tools in their daily works. The research found that there were three communication tools sharing the highest mean score (3.36) which are the financial system, bar coding & scanning and electronic data interchange. The second highest mean score selected by the respondents was the vehicle routing (3.32), followed by the computer (3.24). The global positioning system or GPS was the lowest mean score (3.12) recorded. 212 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 The next question that had been asked to the respondents were to rate the difficulty of understanding on the daily users of communication tools. The research found that the enterprise recourse planning was rated as the highest mean score (3.34), followed by the hand-held/on-board computer (3.29) and the automated storage & retrieval system (3.26). All these communication tools in the logistic industry need to become priority for the organization to make sure the existence of the entire item are useful. Meanwhile, as expected, the internet/intranet/extranet (3.07) was rated as the lowest mean score on the level of difficulty used among workers since the medium has become among the highest demand of daily used. It can be seen from the above analysis that the level of communication tools accessibility shows the wireless communication (4.07) was the highest mean score recorded. This result also shown the computer was preferred among the respondents with mean score slightly low (4.06), followed by an internet/intranet/extranet (4.03). The automated guided vehicle (3.23) was the lowest mean score in terms of accessibility chosen by the respondents. Hence, to ensure the process of delivery become more accurate and convenient, the logistic industries have to extend the accessibility of communication tools among their workers. Language factor is another angle in communication tools that need to be considered. In the analysis, the researcher found that the computer was rated as the highest mean score (3.84) recorded. This rated were followed by an internet/intranet/extranet with the mean score (3.79) and wireless communication (3.77). The automated guided vehicle again was also befalling as the lowest mean score with (3.15) for the language factor. The other question that had been asked to the respondents were to rate the time factor in the communication tools. Based on the result above, the researcher found that the wireless communication was rated as the highest mean score (3.86), followed by the computer (3.79) and internet/intranet/extranet (3.74). The result also shows that the automated guided vehicle (3.24) was the lowest mean score rated by the respondents. The last analysis was the question asked to the respondents on disaster/hazard obstacle in communication tools. The finding shows the computer and the warehouse management system was rated as the highest mean score (3.50), followed by the internet/intranet/extranet with slightly low (3.49) and the wireless communication rated with (3.48). The analysis also shows that the bar coding & scanning was rated as the lowest mean score compared to the others communication tools on disaster/hazard with (3.27) recorded. Table 7. Factors of communication ineffectiveness Lack of ICT resources 3.82 Rising operational cost 3.62 Increase in demand and supply 3.44 Increase in competition 3.40 Lack of competent human resource 3.61 Instability of political situation 3.54 Rapid changes in technologies 3.56 Too much 'red-tape' (bureaucracy) 3.62 Based on the table above, most respondents answered that the lack of ICT of resources will affect the communication ineffectiveness (mean = 3.82). Too much ‘red tape’ or bureaucracy also would affect the communication ineffectiveness with the mean score at 3.62 the same score for the rising operational cost would affect the communication ineffectiveness. It shows that, lack of ICT and too much bureaucracy and operational cost are the most essential in daily logistics operation. The lack of human resource is also another critical factors where mean score of 3.61 recorded. Although ICT is one of the essential factors in good logistics industry service, respondents said rapid changes in technologies will affect the communication ineffectiveness (mean = 3.56) meanwhile the political stability comes next with mean score of 3.54. The least mean score of 3.44 recorded for the increase in demand and supply will affect the communication ineffectiveness while increase in competition seems does not affect the logistics industry with the mean score of 3.40. 213 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 RO 3: To identify the current problem of communication channel used in terms of disseminating information to all parties in logistics industry. Table 8 – Possible communication problems in logistics industry Lack of ICT resources will affect the communicati on ineffectivene ss 3.87 Rising operational cost will affect the communicat ion ineffectiven ess 3.71 Increase in demand and supply will affect the communicati on ineffectivene ss 3.54 Increase in competition will affect the communicati on ineffectivene ss 3.51 Lack of competent human resource will affect the communicati on ineffectivene ss 3.72 Instability of political situation will affect the communicati on ineffectivene ss 3.63 Rapid changes in technologies will affect the communicati on ineffectivene ss 3.64 Too much 'red-tape' (bureaucra cy) will affect the communic ation ineffective ness 3.75 Admin (Account & HR) 3.82 3.60 3.34 3.28 3.48 3.44 3.56 3.53 Warehouse (Storage) 3.68 3.40 3.35 3.39 3.61 3.46 3.32 3.41 Total 3.82 3.62 3.44 3.40 3.61 3.54 3.56 3.62 Department group Logistic (Operation & Forwarding) The above table shows mean score finding by departments. Overall, logistics department has the highest average mean score at 3.67. In terms of ICT logistics department (operation and forwarding) has the most mean score at 3.87 for the effect of ICT towards communication ineffectiveness followed by admin department (mean = 3.82) meanwhile warehouse recorded the least mean score at 3.68. The effect of too much ‘red tape’ or bureaucracy on communication ineffectiveness also recorded the highest mean score by logistics department compared to admin department and warehouse at 3.53 and 3.41 respectively. The lack of competent human resource also essential for logistics department with mean score of 3.72 followed warehouse at 3.61 while admin department recorded the lowest score at 3.48. Mean score of 3.71 recorded by logistics department when they asked whether rising operational cost will affect the communication ineffectiveness. For this item, admin department scores the second highest mean score at 3.60 while warehouse recorded 3.40 of mean score. The next highest mean score recorded by logistics department is on the effect of rapid changes in technologies on communication ineffectiveness. Mean score of 3.64 is recorded while 3.56 mean score recorded by admin department and warehouse recorded 3.32 of mean score. The effect of political stability on communication ineffectiveness comes next with logistics department recorded 3.63 mean score while warehouse and admin department at 3.46 and 3.44 mean score respectively. The effect of increase in demand and supply on communication ineffectiveness seems one of the lowest mean score recorded by logistics department at 3.54 but still higher than other departments where warehouse recorded only 3.35 mean score while admin department recorded 3.34. The effect of competition on communication ineffectiveness recorded the lowest mean score of all whereby for logistics department the mean score is 3.51, warehouse department recorded 3.39 of mean score and admin department recorded 3.28, the lowest mean score recorded compared to other seven items. 214 Mokhtar Muhammad et al. / Procedia - Social and Behavioral Sciences 130 (2014) 204 – 215 4. Discussion This research can be considered as an exploratory study. However the research team satisfied with its findings and believe these data can be used as future reference especially in terms of communication aspects. The research team concluded that those objectives set in the research as achievable. As conclusion, the research team found that mobile technology and its application is vital in logistics industry. Data shown in table 1 clearly indicated that communication and information technology and its application are vital in logistics industry where “mobile communication” and “email” scored the highest agreement from respondents. Those communication and information technology also would enhance logistics operation effectiveness and it is clearly shown in table 2 where “computer” scored the highest agreement from respondents. Most respondents also agreed that lack of ICT would affect logistics efficiency although table 5 showed lower scored as compared to “computer”. This study also found that “logistics department” can be considered as the main department that too “dependents” on communication and information technology. In Table 5, that department scored the highest score for every item. The research team would like to suggest to relevant authority to upgrade and enhance communication and information technology and devices. Another aspect that must be maintained and even upgraded is the internet connection. In logistics, fast and accurate information is vital and they cannot afford to have slow connectivity. Since Malaysia quite some time introduced and established its own Multimedia Super Corridor (MSC) and even has its own satellite in orbit, means that Malaysia can already offer a good and well-maintained communication and information infrastructure but at the same time it must also be enhanced from time to time while for the logistics industry, each players can lend a support towards better and proper communication and information technology and its application. 5. Acknowledgments This research is fully funded by Malaysian Logistics Council and supported by MITRANS – UiTM to identify communication effectiveness in Malaysian logistics industry by looking at several aspects such as communication channels, communication barriers and communication patterns that practicing by logistics companies in Malaysia. From the findings, we hope it can contribute to the development of better communication systems in Malaysian logistics in the next coming future. References Ali, R M, Jaafar, H S and Mohamad, S 2008, ‘Logistics and Supply Chain in Malaysia : Issues and Challenges’, Paper presented at the EASTS International Symposium on Sustainable Transportation incorporating Malaysian Universities Transport Research Forum Conference, Johor, 12-13 August. 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