CAEA 3230

INTEGRATED CASE STUDY

Lecturer: Dr. Zarina binti Zakaria

The Pirates of the Silverland

(Palm Oil Piracy)
NAME

MATRIC NUMBER

AZRUL BIN AZMI

CEA 120010

NORANISA BINTI MUHAMAD

CEA 120068

NUR HIDAYAH BINTI RUSLAN

CEA 120073

RAUDZOTUL JANNAH BINTI AMIN

CEA 120091

INTRODUCTION
Palm Haul Sdn. Bhd
(PHSB)
(A transporter of crude palm oil)

Owner and Founder

Datuk S. Najeed

CEO

Major Customer

En. H. Rossly

Oilene Refineries Sdn.

Bhd.
(ORSB)

HIGHLIGHT
Received complaint: the quality of the CPO delivered by PHSB give impact on ORSBs inability to fulfil customer order.
PHSBs first quarter of 2009s financial report shows that profits had dropped significantly compared to the same period
last year.

Significant
drop in Profit
Margin

Management
Plan

Significant
drop in Profit
Margin

Management
Plan

ISSUES
HIGH ABSENTEEISM/DRIVER
SHORTAGE
Pressure to deliver CPO on
time with lack number of driver.
Long journey- driver physically
and mentally tired.
Unattractive remuneration
packages.

2.
SOLUTION

SOLUTION
NO

PROBLEM

High Absenteeism/Driver Shortage

High oil pilferage

SOLUTION

because of this it has

historically been associated
with sacrifice, danger and
Take disciplinary action to the
drivers who conduct wrongdoing.
courage.

Adopt GPS tracking system ( Fleet Management System) in company as

part of internal control system.

Establish proper internal control system regarding the delivery of the CPO.
For instance, assign manager who will check for the quality and quantity of
CPO before its been delivered to customer and confirm the delivery with
customer after the CPO arrived.

Send the vehicle to service center regularly based on the requirement of

the mileages.
Equip the driver with basic mechanic knowledges, so that the driver will be
able to repair the vehicle whenever there is ordinary breakdown.

Complaint from major customer

High maintenance cost

Hire sufficient number of drivers to deliver CPO

Create systematic and flexible schedule of driver daily hours and route
Red medical examination
Monitor driver health by conduct
Is the color
and the driver
Establish attractive remuneration
planoftoblood,
motivate

3.
RECOMMENDATION

RECOMMENDATIONS
Short Term Recommendation
1.

Hire sufficient number of driver to deliver CPO.

We believe that insufficient number of driver lead to long

working hours. This could be a factor of not productive driver
and indirectly contribute to demotivated of the worker.

2.

Create a proper maintenance schedule for the vehicle.

This could reduce the maintenance cost caused by the vehicle

that lower the profit margin.

Long Term Recommendation

1.

Establish proper internal control system and evaluate risk

management of the company

2.

Management should revised the remuneration packages to the

driver.

Adopt and apply Fleet Management System. This system is

one of internal control system which could track the position
of the lorry.
Evaluate the risk that facing by the company and design
effective internal control system to improve the operation
continuously.

This is one of the factor to motivate the worker to do their job

more effectively and efficiently. By giving a proper remuneration
packages also could prevent the driver from conducting
pilferage of oil.

Fleet Management System

REFERENCES
Fleet management system. Retrieved from
https://en.wikipedia.org/wiki/Fleet_management
Truck driver pay and benefit. Retrieved from
https://schneiderjobs.com/company-drivers/benefits
Retrieved from
http://www.afrirent.co.za/content/fleet-management-sys
tem
Retrieved from
http://www.bizcoachinfo.com/archives/11419
Retrieved from
http://thethrivingsmallbusiness.com/4-ways-to-reduceemployee-absenteeism/
Retrieved from
http://www.smart-trucking.com/truck-driver-shortage.htm
l

Thank Y u