Hau Yong Kang - 2011179 - ABDS3064 - TM - Group

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KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN

FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS


ACADEMIC YEAR 2021/2022

Subject Code and Name of the Subject : ABDS3064 Transportation Management

Tutorial Class : DLMG3

Type of product : Covid-19 Vaccine Pfizer

Group member’s Name I.D. Number

1. HAU YONG KANG 20WBD11179

2.YAP PEI QI 20WBD10484

3.ANG WEI HAN 20WBD10565

4.LIEW YONG BIN 20WBD06323

5.KOK ZI YING 20WBD10706

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FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
COURSEWORK FEEDBACK FORM FOR WRITTEN REPORT

COURSE CODE/ COURSE TITLE: ABDS3064 Transportation Management


NAME OF STUDENT(s): ID No:
1) HAU YONG KANG 20WBD11179
2)YAP PEI QI 20WBD10484
3)ANG WEI HAN 20WBD10565
4)LIEW YONG BIN 20WBD06323
5)KOK ZI YING 20WBD10706
PROGRAMME: DLM
YEAR OF STUDY: YEAR 2 ACADEMIC YEAR: 2021/2022
SEMESTER: SEM3
GROUP NO: G3
COURSEWORK NO: 1 NATURE OF 73/100
COURSEWORK:
Group Assignment

Overall feedback (e.g. strengths, weaknesses , areas for improvement etc) :

Student’s Date:8/3/2022 Lecturer’s /Tutor’s Date:


Acknowledgement: Name and
HAU Signature:

Note: This form must be submitted together with the assessment grid/grading criteria used for
the coursework

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APPENDIX B: PLAGIARISM STATEMENT

KOLEJ UNIVERSITI TUNKU ABDUL RAHMAN


FACULTY OF ACCOUNTANCY, FINANCE AND BUSINESS
ABDS3064 Transportation Management
DLM

Plagiarism Statement

We confirm that the submitted work are all our own work and are in our own words.

Name (Block Capitals) Regn. No. Signature

1. HAU YONG KANG 20WBD11179 HAU

2. YAP PEI QI 20WBD10484 QI

3. ANG WEI HAN 20WBD10565 HAN

4. LIEW YONG BIN 20WBD06323 Liew

5. KOK ZI YING 20WBD10706 YING

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DATE: 11/03/2022

Plagiarism Report

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Assessment Criteria

1-5 6-10 11-15 16-20

● Description of
the scenario and Incomplete General Detailed
important Poor description
description description description
service provided
components provided provided provided
(14/20 marks)

Majority of Analysis is Detailed analysis Detailed analysis


Transportation
analysis is not relevant but without sufficient with supporting
mode
relevant incomplete evidence evidence
(15/20 marks)

Majority of Analysis is Detailed analysis Detailed analysis


Potential
analysis is not relevant but without sufficient with justification
challenges
relevant incomplete evidence and evidence
(16/20 marks)

Mostly relevant
Decision to Able to identify
Poorly explained but without Clearly explained
insource or but lacking
and not relevant sufficient and relevant
outsource explanation
explanation
(12/20 marks)

Some of the
content requires
Demonstrates
Unable to more Most of the
creativity and
Write-up effectively clarification, content is clearly
professionalism in
communicate however general delivered
(16/20 marks) delivery
message is
understood

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TABLE OF CONTENTS

NO. CONTENTS PAGE


NUMBER

1. 1.0 Description of the scenario and the most important service 7-8
components (transit time, reliability, accessibility, capability or
security)

2. 2.0 Choice of transportation mode with justification 9-11

3. 3.0 Potential challenges faced 12-13

4. 4.0 Decision to insource or outsource transportation operations 14-15


with justification

5. Reference 16-17

6. Appendix 18

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1.0 Description of the scenario and the most important service components
The COVID-19 pandemic has wreaked havoc on people's lives and livelihoods all over the
world. (Oecd 2022) Many countries have taken extraordinary steps to strengthen social safety
nets, particularly for low-income families, children and youth, women, low-skilled employees,
part-time or temporary workers, and the self-employed. The only way to stop the Covid-19
pandemic is for everyone to get vaccinated as soon as possible, which is why Malaysia reiterates
its appeal for universal access to the vaccine. The Malaysian government has planned to obtain
COVID-19 vaccine from a variety of authorities and firms, with the goal of vaccinating at least
70% of the population. Malaysia to opt for Pfizer-BioNTech COVID-19 vaccine to Reaching
‘Herd Immunity’ for the country itself. Doses of the vaccine, developed by Pfizer in the United
States and BioNTech in Germany, the first coronavirus vaccine to pass rigorous testing and be
approved for use. The production plant for this vaccine is locate at Puurs in Belgium.
(Straitstimes 2020) In order to supply the Pfizer-BioNTech COVID-19 vaccine to the
destination country, Pfizer have to transport the vaccines from their production plant in Puurs,
Belgium to Kuala Lumpur, Malaysia.

The Pfizer-BioNTech COVID-19 vaccine must be kept at –70° Celsius, which necessitates the
use of special storage freezers and shipping containers. (Tina 2020) During the process of
transporting. In order to fulfill the criteria, the Pfizer-BioNTech COVID-19 vaccines, the
vaccines must pack in thermal shippers with dry ice as the temperature data logger to ensure that
no cold chain breaches during the transporting process. (Who 2021) Due to the special
requirement Pfizer vaccine is needed during the transporting process, Pfizer require to choose a
transportation way that having high reliability or else the effectiveness of the vaccines will
greatly reduce. Apart from that, transit time is also one of the service components of freight
demand of Pfizer. Transit time is also one of the service components of freight demand of Pfizer.
People who receive a Pfizer-BioNTech COVID-19 vaccine need 2 initial shots to complete the
primary series. There is a timing between the receiver's first and second shots of Pfizer-
BioNTech COVID-19 vaccine which is getting the second shot 3 weeks later (or 21 days) after
their first dose of shot. The transit time of COVID-19 vaccine is crucial for Pfizer, as the
pharmaceutical company have to ensure the second batches of COVID-19 vaccines have to
arrive on time within the scheduled period in order to avoid the receiver of the first dose of
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Pfizer-BioNTech COVID-19 vaccine faced delay on their second shot appointment. The faster
Covid-19 vaccine roll-out can help Malaysia to increase the vaccination rates of the country and
reducing the negative impact that bring by COVID-19 pandemic. The transit time of the Pfizer-
BioNTech COVID-19 vaccine must be fast and accurate. (Icao 2020,)

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2.0 Mode of Transportation
Intermodal Transportation mode with a combination of air freight and motor carriers

Since the customer's main concern when shipping Pfizer-Biotech's COVID-19 vaccine is transit
time and reliability, we will recommend to the customer to use a multimodal mode that combines
air and motor transportation. Intermodal transportation is described as a method or system in
which passengers and freight are transported using numerous modes of transportation. Pfizer
Vaccines does not categorize under the common good as it is the high value medical products
and even have the higher value over the cost of air freight. Pfizer-Biotech's COVID-19 vaccine
can adopt the Cargo Air Freight for the delivery process from Puurs, Belgium to Changi,
Singapore. The truck transportation modes can be used for the delivery of Pfizer-Biotech's
COVID-19 vaccine within Malaysia.

Transit Time

Pfizer-Biotech's COVID-19 vaccine belongs to perishable and valuable items. Pfizer-Biotech's


COVID-19 vaccine must be delivered in a shorter time to assure the effectiveness of the vaccine.
The transit time is shorter which means the negative impact that brings by the Pandemic of
Covid-19 can be substantially reduced. Getting vaccinated against COVID-19 reduces Malaysia's
citizen’s chances of contracting the virus that causes COVID-19 and spreading it. Vaccines can
also aid in the prevention of major diseases and death.

Cargo Air Freight

Cargo Air Freight suitable for long-distance delivery. Among the modes of transportation
accessible today, cargo air freight is the quickest and most efficient. It makes use of natural paths
and does not necessitate the development of separate roadways. It's also because of the
utilization of cutting-edge technology and highly trained and competent technicians. Forests,
towering mountains, enormous deserts, and oceans can't stop it from flying. Airfreight is
unquestionably faster than maritime freight. It can take weeks for ocean cargo to arrive. It simply
takes a day or two for air freight to arrive at its destination. While ships are becoming faster and
ocean transport routes are being optimized all the time, nothing compares to the speed of air

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travel. Air cargo freight can fly directly past any location whereas maritime freight must follow
specific routes, such as can't directly pass through the city. The Pfizer Vaccine mainly requires
delivery to the destination as fast as possible due the epidemic had become more and more
serious. The government is required to get the Pfizer vaccine as fast as possible to control the
epidemic becoming more and more serious.

Truck Transportation

The truck transportation method was best for delivering perishable goods over short distances.
When opposed to rail transportation, truck transportation can give door-to-door service. The
other short-distance transportation mode does not meet the requirements for offering door-to-
door service, for example, a train cannot arrive immediately at a customer's warehouse.
Malaysian road construction is far superior to railroad construction. To accomplish last-mile
delivery service, train transportation needs the assistance of other forms of transportation. When
items are transferred from one mode of transportation to another, extra time is necessary, which
causes a delay in shipment. Pfizer-Biotech's COVID-19 vaccine is transported by truck, which
just requires loading at the airport and unloading at a specialized warehouse. Rail transportation,
on the other hand, necessitates loading the cargo at the point of arrival, unloading at the terminal,
and loading it into another transport vehicle.

Reliability

All humans require the COVID-19 vaccination developed by Pfizer-Biotech. The vaccine
transportation method must be dependable in order for the government to properly plan for the
vaccine procedure. If the delivery of Pfizer-COVID-19 Biotech's vaccine is always delayed, the
negative impact of the Covid-19 pandemic would be exacerbated. The government may face a
vaccine scarcity as a result of the supply delay even the effectiveness of vaccine will be affected.

Cargo Air Freight

Weather conditions can easily throw airline schedules off, but flights are typically adjusted and
rescheduled promptly and effectively. Furthermore, flights between major cities are frequently
many every day, whereas ships leave once a week. When ships are thrown off schedule, it
usually takes them a few days to get back on track. According to Hanbury (2021), there are a
total of 111 container ships waiting to dock and unload around the ports of Los Angeles and

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Long Beach. The previous high of 108 boats reported on October 21 has already been surpassed.
This type of incident will cause delays in sea cargo shipments. However, this type of vehicle
gridlock in airports waiting for offloading will not occur with cargo air freight. Due to the
airplane's stay at airports, a fee must be paid. The cargo air freight businesses will not allow the
plane to stay in the airport for too long since they will lose money by paying higher fees.

Truck Transportation

Truck transportation can reach the end location immediately. However, without the assistance of
another mode of transportation, the railway will not be able to reach the final destination.
Because trains can deliver a large volume of products at once, railway transportation is less
expensive than truck transit. Because the volume of products hasn't reached the expected level,
railway firms will postpone their shipments while they wait for more. This move will always
create delays in rail transportation. Due to the customer's preference for truck transportation,
which is based on whether products will arrive on time or not, truck transportation will not
postpone their shipment even the expected level of goods has not been met. If truck
transportation is always delayed due to whatever reason, Pfizer-COVID-19 Biotech's vaccine
considers vital needs for all human beings. Why aren't people making use of train transportation,
which will likewise cause delays but is considerably less expensive than trucking.

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3.0 Potential challenges faced
Firstly, the potential challenges that Pfizer will face are that the staff of the transport department
do not have sufficient experience. They need to be familiar with the shipping process and have
good training on quick handling, loading, and other operations. It is because the staff are required
to complete the entire transportation process quickly and smoothly at almost 4-degree
refrigerated area. Besides that, it is necessary to clearly record the whole process of supply chain
status information that can be traced and monitored. Furthermore, inexperienced employees are
prone to make mistakes when faced with complex processes. On the other hand, drivers who are
transporting vaccines, they require a great physical body and rich in driving experience. In the
truck cab, the equipment including the main and auxiliary cooler control panels, on-board
temperature recorders, driving recorders, routing data, temperature data and more. All these
devices require a experienced and trained drivers to operate. During the transportation activities,
drivers need to always be concerned about the condition of the vehicle, location coordinates,
temperature in the car, whether the door is closed or not, and having adaptability to the sudden
problem. These operations need to be based on the accumulation of experience to judge and
manage, otherwise even the best refrigeration systems and equipment also will not work. (UWT
2022)

The second potential challenge faced by Pfizer is among the logistics process, it is difficult to
always control the temperature of Pfizer in the specified temperature range. Through the entire
transport chain, it is hard to maintain an appropriate temperature for vaccines. It is because a
complete logistics chain to transit Pfizer Covid-19 Vaccine usually consists of different transport
processes, such as road transport, storage, loading and unloading, customs clearance, and air
transports. Therefore, it is hard to monitor the whole process and ensure that the temperature of
all intermediate steps is stable. If the temperature is unable to be maintained at the desired
temperature while in the transportation chain, it will affect the quality of the vaccine. When the
vaccines are stored at specified temperatures, vaccines may be destroyed or unsafe to use.
Typically, Pfizer vaccines should be refrigerated between 2 and 8 degrees. Regular refrigerators
cannot maintain a stable temperature, so vaccines require specialized medical refrigerators. In

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short, Pfizer Vaccines need strict temperature requirements. Through the process of
transportation, the transformation of the logistics chain is complicated, and there exist many
uncontrollable factors. For example, the shipment arrives in our country, then refrigerated trucks
will transport the vaccine from the airport to the cold storage. After that, the vaccine was only
transported from the cold storage to the regional center by using a portable refrigerator and
stored in the freezer. In addition, companies should more focus on the storage refrigerator
requirements issue for local warehouse capacity, it is also necessary to consider the temperature
stability and monitoring capabilities during the transporting process. (SEKO Logistics
Knowledge Hub 2021) (Inspirage 2021)

The third potential challenge of Pfizer is the rising geopolitical tensions. During the war and
conflict between two nations or more than that, it will lead to the prohibition of airspace where
the flight of aircraft is not allowed, due to security concerns. Because of its high visibility, air
freight is inherently vulnerable to geopolitical risk. Aircraft crisscross national airspace, and
disruptive and harmful actors target airports. It is sensitive to climate extremes, societal and
economic tensions, and weaponized technology. As a result, changing worldwide political and
security situations, as well as new regulation, may have an impact on air freight. If Pfizer is
transporting the supply of vaccines using air freight from their manufacturing facilities to the
destination country during the war time, the pharmaceutical company is exposed to the risk of
being shot down by the militarized weapon accidentally when flying by the danger areas and no-
fly zones. Situations on the ground can have disastrous implications for airspace above 30,000
feet, as the downing of Malaysia Airlines Flight MH 17 over Ukraine in 2014 demonstrated.
There is no guarantee of safety at altitude, and certain places may need to be avoided, which will
cost time and fuel. (Andreas 2019) (Mathew and Robert 2022)

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4.0 Decision to insource or outsource transportation operations with justification
Usually, we choose to outsourcing transport for vaccines. What is outsourced logistics?
Outsourcing generally refers to engaging someone or a company to do the work for you. This
outsourcing logistics refers to hiring a third-party logistics company (3PL) to be responsible for
logistics services. 3PLs can bring more convenience by taking over intralogistics activities. Also,
3PLs are usually full-service providers (land, sea and air). Although the most commonly used
outsourced logistics for local distribution activity is transportation by land, third-party logistics
may include warehousing, supply chain management, and order fulfillment. It can clearly know
the dynamics of the customer's inventory. A full-service 3PL helps e-commerce brands become
more efficient during and after a crisis. A complete logistics service provider offering an end-to-
end solution that makes it easy and fast to ship or move orders to your customers. With a
strategic network of distribution centered across the country, a full-service 3PL like ours ensures
you have the right item in the right place, making your order faster and cheaper either by land,
sea or air.

The main reason for choosing 3PL services is that these outsourcing logistics company can
liberate the productivity of vaccines, allowing them to spend more time in developing and
manufacturing vaccines. Handling logistics jobs is not easy unless the company is in the logistics
industry. If they choose insource logistics, one of the practical problems they must face is that
they cannot keep up with the thousands of changes and trends in the field of logistics. Also, the
reason for choosing it is that it does bring many benefits.

The first is that it can reduce the total cost of the supply chain. They have greater control over
storage locations, and retail partners have higher order value, giving them a reason to keep their
own warehouse space. This means your funds can be used for efforts that generate better returns.
Apart from that, the second benefit is that it saves labor time less manpower is required as now
manpower is difficult to employ and also the competent personnel to carry out the duty of
logistic. During the pandemic, companies are asking employees to work from home, including
those working in 3PL warehouses and fulfillment centers. As a result, warehouse automation has

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become a key differentiator for 3PL services. The third is the internationalization of its
management. There is a lot of behind-the-scenes work to scale an e-commerce business.
International expansion requires a global fulfillment network. Documentation and customs and
duty accounting are required to process international orders. Outsourcing these responsibilities
can make it easier to sell across borders. It also speeds up delivery times, increases customer
satisfaction, and reduces shipping costs.

As the epidemic has been on the rise, all parts of the world are concentrating on developing a
drug or vaccine that can fight the virus. Pfizer is a drug developed in the United States. After
many clinical trials, this drug that can prevent infection has finally been developed and approved
by WHO to be used worldwide. Once the vaccine is approved, scale-up production begins.
Therefore, no matter from production to transportation, we must be extra careful and must
consider the problem from all aspects. In the process of making a COVID-19 vaccine,
researchers and developers must work simultaneously in several different stages to expedite
results.

Next, in the packaging part, in order to allow the public to obtain a safe and hygienic vaccine
preparation. Once the vaccine is mass-produced, it is packaged in glass vials and carefully
packaged for safe refrigeration and shipping. Also, vaccine packaging must be able to withstand
extreme temperatures, as well as the risks of breakage during global shipping. Therefore, vaccine
vials are often made of glass, as glass is clean, durable and able to remain intact under extreme
temperatures. Vaccine storage is also very particular, and when the vaccine is exposed to too
cold or too hot temperatures, it becomes less effective or even loses it activeness. As a result, the
vaccine could be unsafe for use. Vaccines must be kept refrigerated between 2 and 8 degrees
Celsius. Moreover, ordinary refrigerators cannot always be maintained at one temperature, and
must be transported by special constructed medical refrigerators.

Should a 3PL is chosen this will makes it easier to ship to all parts of the world. Once the
vaccines are made and packaged, they will be shipped around the world. When the products
arrive in the destination country, refrigerated trucks transport the vaccines from the airport to the
cold storage. The vaccine is then transported from the cold storage to the regional center using a
portable refrigerator and stored in the freezer. If vaccinations are to be administered outside of a
regional facility, the final step usually involves transporting the shipment to the vaccination site

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with a portable refrigerator. Portable devices have been created using new technology that can
keep vaccines at low temperatures for days without the need for electricity. (Alexandra T 2021)
(WHO 2022)

References

1. Alexandra T 2021, Outsourcing, Viewed 9 March 2022,


<https://www.investopedia.com/terms/o/outsourcing.asp>.
2. Andreas 2019, Four key geopolitical risks likely to affect aviation industry this year,
Viewed 9 March 2022, <https://www.wtwco.com/en-ID/Insights/2019/03/4-key-
geopolitical-risks-likely-to-affect-aviation-industry-this-year>.
3. Hanbury, M 2021, A record 111 container ships are floating off California's busiest ports,
despite Biden's 24/7 schedule and looming fines, viewed 10 March 2022,<
https://www.businessinsider.com/supply-chain-crisis-record-number-of-container-ships-
ca-ports-2021-11#:~:text=The%20number%20of%20container%20ships%20stuck
%20off%20the%20coast%20of,waiting%20to%20dock%20and%20unload>.
4. Icao 2020, Guidance for Vaccine and Pharmaceutical Logistics and Distribution, Viewed
9 March 2022,
<https://www.icao.int/MID/Documents/RPTF/Guidance_for_Vaccine_and_Pharmaceutic
al_Logistics_and_Distribution_Glo.pdf>.
5. Inspirage 2021, What are the supply chain and logistics challenges in delivering COVID-
19 vaccines?, Viewed 9 March 2022, <https://www.inspirage.com/2021/01/what-are-the-
supply-chain-and-logistics-challenges-in-delivering-covid-19-vaccines/>.
6. Mathew and Robert 2022, The top twelve risks and opportunities for 2022, Viewed 9
March 2022, <https://www.atlanticcouncil.org/content-series/atlantic-council-strategy-
paper-series/the-top-twelve-risks-and-opportunities-for-2022/>.
7. Oecd 2022, Focus on social challenges, Viewed 9 March 2022,
<https://www.oecd.org/coronavirus/en/themes/social-challenges>.
8. Straitstimes 2020, First doses of Pfizer-BioNTech Covid-19 vaccine being shipped from
Belgium to Britain, Viewed 9 March 2022,
<https://www.straitstimes.com/world/europe/first-doses-of-pfizer-biontech-covid-19-
vaccine-being-shipped-from-belgium-to-britain>.

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9. SEKO Logistics Knowledge Hub 2021, The Logistics Challenges of COVID-19
Vaccination Distribution,Viewed 9 March 2022,
<https://www.supplychain247.com/article/the_logistics_challenges_of_covid_19_vaccina
tion_distribution>.
10. Tina 2020, Here’s why COVID-19 vaccines like Pfizer’s need to be kept so cold, Viewed
9 March 2022, <https://www.sciencenews.org/article/coronavirus-covid-19-why-
vaccines-cold-freeze-pfizer-moderna>.
11. UWT 2022, THE 4 MOST COMMON COLD CHAIN LOGISTICS PROBLEMS
TRUCKERS FACE AND TIPS FOR SOLVING THEM, viewed 9 March 2022, <
https://unitedworldtransportation.com/4-common-cold-chain-logistics-problems-truckers-
face-tips-solving/>
12. Who 2021, Training on handling, storing and transporting Pfizer BioNTech COVID-19
Vaccine COMIRNATY® (Tozinameran), Viewed 9 March 2022,
<https://www.who.int/publications/m/item/training-on-handling-storing-and-
transporting-pfizer-biontech-covid-19-vaccine-comirnaty-(tozinameran)>.
13. WHO 2022, Outsourcing vaccine supply chain and logistics to the private sector, Viewed
9 March 2022,
<https://www.who.int/immunization/programmes_systems/supply_chain/optimize/
outsourcing_evidence_brief.pdf?ua=1>.

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Appendix

Appendix 1: Pfizer-BioNTech Covid-19 vaccine specialized storage

Appendix 2 : Pfizer-BioNTech Covid-19 vaccine storing criteria

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