Monday, June 6, 2011

Kontena unveils logistics package for SMEs

Third party logistics provider Kontena Nasional Bhd will launch a warehouse and transportation package deal for small- and medium-sized enterprises (SMEs) today, which may make it viable for your favourite Penang halal "tao sah piah" manufacturer to bring it to a store near you.

The launch is in conjunction with Smidex Exhibition 2011.

SMEs have always been limited geographically due to high transportation costs. Starting out small, SMEs do not have the necessary volume to negotiate competitive rates with transportation providers.

"Our strategy is if we are able to cater, not to a single SME, but a group of SMEs in a single platform, in a single location, then we will be able to reduce the cost significantly, bearing in mind that once they grow they will be able to add volume to this produce of theirs," Kontena Nasional chief executive officer Hood Osman said in an interview here recently.

About 95 per cent of total businesses in Malaysia are SMEs.

Called 1 KN 1 Rate, Kontena Nasional's latest offering is customised to meet individual SMEs needs. It includes role consulting, planning, transport rates and warehouse rates.

Hood said the last six to eight months have been about bringing Kontena Nasional to a state of readiness to offer the services.

"We have applied halal certification and increased our fleet to multi-vehicle services. We used to be wholly in prime movers and hauliers, and have expanded our warehouses. These are all significant contributors to the whole infrastructure that will help facilitate the growth of SMEs," he said.

Kontena Nasional currently has about 15 warehouses nationwide, and is expected to add another three by the end of the year.

"We have used the past six months to make sure that we can cater to individual requirements, to do a bit of study, to see where SMEs are and how to go about servicing them," Hood said.

He said its studies have shown that SMEs generally do irregular deliveries, make sporadic requests and require too small a space in warehouses for retention.

Kontena Nasional expects to bring in between RM7 million and RM8 million in sales from the venture.

The second phase will be the introduction of its product to SMEs in Sabah and Sarawak.

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