Case Study-Sanlu

Company Background

Sanlu was a state-owned Chinese dairy products company based in Xinhua District, Shijiazhuang.It produced one of the oldest and most popular brands of infant formula in China.And New Zealand's Fonterra owned 43% of Sanlu.

Due to the Sanlu crisis,it received a bankruptcy order from Shijiazhuang Court on 24 December 2008, and several of its top managers were sentenced to long prison terms.

Sanlu Crisis refer its infant formula had been contaminated with the toxic chemical melamine. Melamine, a chemical used to produce plastics and fertilizer, can appear to heighten the protein levels of milk so that the milk is erroneously iden- tified as a higher grade and yields a higher price. The dangerous effect to health is infants and young children will become sick or even die from kidney failure. The melamine scare also resulted in many countries recalling and banning goods using milk products from China

 How did Sanlu milk crisis arise?

There are reasons leading initial rise of Sanlu in China

• Breastfeeding was declining in China
• Emphasizes on using infant forumla
• Very intensifies inter-regional competition among the industry

Most importanyly. Sanlu took advantages of low price

 

First complaint about milk adulteration: Dec 2007

A consumer posted in the internet community about package dated post 17^th Dec and reported to be a fake  (Power of Internet)

                           

The crisis came into light in Sept 2008 when the company did not respond to the Chinese government on the alteration of milk and its effects which killed 3 babies

 

The Chinese government was alerted by the New Zealand prime minster as Fonterra group, a New Zealand milk company and joint ventured with Sanlu for mutual benefits

Sanlu made a public apology on 15^th Sept

Who is responsible?
1. Sanlu:
   Neglect the harmful results of adding chemicals into milk powder
   Want to maximize their profit & decrease their cost
   Top management: not ensuring a visibility in supply chain
     Also hide the problem to government

2. Suppliers:
 produce & supply milk powder with chemicals(melamine)

3. Government:
Should regulate the quality control as compulsory
The internal food crisis was discovered by a foreign country

 Why do companies outsource?

• Sanlu can concentrate on its core activities(dairy R&D) which has competitive edge
• Non-core activities aren’t the company’s competitive edge
• require management effort and continuous investment to keep them operating
• Avoid taxes, governmnet regulation, labour cost, etc.

Pros of outsourcing

§  Milk Station (Outsourced vendors) are specialized on the raw milk production

§  To reduce the costs and the dependence on non-core activities

  Enjoy economies of scale by reducing labour cost

                    Sanlu has > 30 production plants and > 10,000 employees

§  The risk of the raw milk production can be shared with the outsourced vendors

Cost of raw milk production can be reduced, including labour and operating cost

Cons of outsourcing

• Risk of losing controls of quality and unable to have the first hand information
• Hidden costs and legal problems
• Losing management over the raw milk production , for example : leak of formula of milk

What is the role of ethics in supply-chain management?
We divide it into different aspects.

Economic responsibilities:	Supply high quality products and services
Legal responsibilities:	Obey laws and regulations
Ethical responsibilities:	Conduct business in a way that is morally consistent with the beliefs of society

Vertical integration: Suppliers >Farmers

• Offering acceptably price to the farmers in order to prevent causing cost pressure
• Share the knowledge with the farmers and management method to milk centre
• Clearly clarify the company ethical expectation with the suppliers and distributors
• Hiring consulting companies to monitor the supply chain process

Channel Management

§  Direct and indirect connection to Supply Chain

§  More direct connection with milk center

   >Supervise the whole process of collecting the raw materials whether conduct is ethical or not

§  Ensure high visibility in Supply Chain

>Sanlu covers the problems at the beginning which increase the seriousness of the scandal

Competition in the industry

Because Sanlu grows too aggressive causing the shortage milk and lower the quality,the crisis was discovered.

For creating a stronger corporate culture, Sanlu should recruit talented individuals with high moral standard to assure quality control.

Society expectation

Sanlu should distinguish the expected ethical values between business operations and society (clear about the customers’ expectation)

What can be done to restore confidence in Chinese dairy products?

1.      Corporate Social Responsibillity

>Increase visibility between trading parties –Tracing System
(Through labeling and database)

>Establish received feedback and recall defected products channels

>Encourage the customers to set up Customer Council

>Release the annual report and compliant improvement time to time

2. Advertising

>Cooperation with other dairy companies through experience sharing

>Milk Station Open Day/ Exhibition for public

>Emphasize the importance of fair trading

3.Supervision and management

> Set up real time database by enhancement of information updating

>Grading system to the diary products based on different criteria

>Strictly standardize the regulations to dairy products

> Termination of bad record suppliers

4.Select raw materials from foreign suppliers

  >Choose some famous foreign suppliers with good reputation( using Natural materials ) and publicise it

>Invite foreign expertise to monitor the manufacturing process  


Reference:
https://hbr.org/product/sanlu-s-melamine-tainted-milk-crisis-in-china/an/HKU837-PDF-ENG
http://www.chinabusinessreview.com/ethical-supply-chain-management/

Case Study FedEx

FedEx

Company Background

FedEx was founded in August, 1971 and started its operations on April, 1973 with the launch of 14 small aircrafts connecting 25 US cities. It went on to develop a hub and spoke distribution pattern, previously used by UPS in ground transportation. This later became the standard for air parcel distribution and enabled FedEx to become the leader in its industry
FedEx Corporation has transformed from an express delivery company into a global logistics and supply chain management company through e-business. It provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. 
For instance, FedEx supply chain services provides a full range of services, including freight management, transportation management and order fulfilment, supplemented by additional specialized and customized services, such as integrated fulfilment of inbound and outbound logistics, returns management and reverse logistics, and synchronized just-in-time (JIT) delivery management to customers’ requirements. .
 
Business models  

B2B (Business to Business): To cooperate with other logistics firms such as DHL and UPS in some areas they have better infrastructure and logistic support services.
B2C (Business to Consumer): To provide delivery services to consumers such as business companies and estate residents.
C2C (Consumer to Consumer): To provide tracking services to customers
Competitors 

Globally Competitors
UPS
It is founded in 1907 and has a larger market share in Europe.The primary business of UPS is the time-definite delivery of packages. It extends service portfolio to include less than truckload transportation (primarily in the U.S.) and supply chain services-operations in three segments: U.S. Domestic Package operations, International Package operations, and Supply Chain & Freight operations.

DHL
It aims at investing in handling systems, automation, facilities and computer technology. It dominates the UK market and it is a main competitor of FedEx in the airfreight market which competing overnight delivery service.

TNT
The headquarters of TNT is in Netherlands and it launches a Web Collection facility on the Internet. It is the world’s first global Price Checker service on its Website that allowed customers to calculate the price of spending a consignment from one place to another anywhere in the world. 

Asia Pacific Competitor
SF Express
Ever since its establishment in Shunde Port in 1993, S.F. Express has been committed to improving service quality and satisfying market demands. It has set up powerful business services including information collection, market development, logistics distribution and express delivery services.

Services and products offering

• Provide guaranteed domestic and international air express

• Residential and business ground package delivery

• Heavy freight and logistic service

What is Virtual Supply Chain? 
Definition of virtual supply chain: Any chain (or network) connected through electronic links represents an organizational structure that facilitates efficient and effective flows of both physical goods and information in a seamless fashion.

List the benefits of a virtual supply chain.
1. Provide one-stop solution for customers and buyers and suppliers

• EDI (Electronic Data Interchange), enable manufacturer to improve inventory level and intensify the processing time by reallocating sources and procurement strategies 

• For customers: Improve efficiency 

2. Keep tracking on the packages
3. Great transparency
4. Convenience in information sharing

• Provide communication along the logistic value chain

5. Better value-added service and improvement in efficiency

• Just-right inventory management (reduce cost and high flexibility)

6. Cost reduction (lower administration cost)
7. Reduce transit time
8. Opportunities 

• Creating more transaction

• Expanding logistic capacity 

Discuss the role of IT in FedEx’s eBusiness Strategy


Internal
1.IT creates more business opportunities in Logistic Management

• Re-engineering the supply chain
• E-tailing
• B2B e-commerce
• Higher efficiency & reduce costs
• Information being shared between departments in a company is much faster

2. Provide real-time  information

• Global Operations Command Centre
• Worldwide central nervous system
• More efficient information gathering
• Dissemination of real-time data
• Non-stop updating without any delay 

External

1. Enhance relationships with cusomters

• Higher customers’ loyalty
• PowerShip System
• Value-added service
• Higher efficiency  and control for on-line services
• EDI
• 1-1relationships relationships with customers

 Global Market

1. Provide new service

• Track and trace system with higher accuracy
• Electronicalize more services to boost up the convenience

2.Enlarging the market

• Calibers system
• broader portfolio of services unmatched by any competitor

3. World-wide sourcing

• Lower cost
• Get the best deal by comparing alternatives from all over the world

What are the factors that put pressure on FedEx to consolidate its operations, while remaining customer-focused?  


Factors:
1. Rising fuel prices

•  Costs affect net income directly, the higher the costs, the lower the profit would be

• According to annual report of FedEx, the average fuel cost per gallon kept rising from 2010 to 2012

2. Internet Market & e-Tailing

• Internet changed the basis for competition for most businesses
• Low cost and high variation

• Opened up opportunities in logistics management

Customer confusion:  

• Customers are confused  due to the repeating information
• Too many information on the internet 

Intensive competition 

•   Services are easily to be imitated
•   Information of alternatives are easily to be gathered by   customers
•   Too many rivalries and hard to remain competitive advantage  

Company Visit Kerry Logistics

Kerry Logistics is one of the biggest Logistics Company in the world. It is under Kerry Construction with Logistics network covering 33 countries. Kerry Logistics has hired more than 19000 staff over the world. 

The main business of Kerry Logistics focuses in mainland China. They set up warehouse and distribution centers in major cities. Currently they have a strategy of focusing on the Capacity of Western Region of China. To duel with the high demand, Kerry have a motor transportation service called KART to deliver the products, by creating convenient transportation with different countries and build up good relationships.

In Hong Kong, they owned 12 warehouses in total and operates with different functions. These warehouses can handle large variety of products, such as dangerous goods or frozen food or chemicals.

Their core business of Kerry Logistics included integrated logistics, international freight forwarding and supply chain solutions. These three business coordinated together and success Kerry.

Kerry Logistics offer customers with stable reliability and high flexibility in supporting continuing growth and expansion in China and South-east Asia. They offer many value-added and customized service or some solutions for their customers.

Besides from the above 3 core business, IT is also a essential focus of Kerry Logistics's operation. KerrierVision is one of the special value in Kerry. It is a IT platform that could meet each individual customer' need. It can provide a cost-effective and convenient solutions for customers and create a win-win situation for all stakeholders.

The service provided by Kerry Logistics mainly are in two aspects, Integrated Logistics and International Freight Forwarding. Integrated Logistics includes value added service, warehouse service and concentrate in local service. In our visit, we have seen three videos of Kerry providing different value-added service to customer related to various industry. For example, Kerry can provide GOH packing for LV apparel to reduce the unexpected damage and keep the products in good condition; or in the Canon example, Kerry can providing kitting and packing service, or some labeling to meet the Hong Kong market demand.

Kerry Logistics also did well in International Freight Forwarding. They offer different intermodel solutions, including the KART. By combining with the KerrierVision, Kerry Logistics can innovate new idea to meet the global changes and customers need.

Q&A Session 1. What are the competitive advantages of Kerry Logistic compare with FedEx, DHL and USP?

Basically, logistics company such as FedEx, DHL take different business strategy. These firms are having the leading positions in transportation and logistics firm but in different divisions. Kerry Logistics are mainly focused on the Asian market, especially that in Mainland China. Moreover, Kerry Logistics is differentiated itself to be a B2B, while the others mentioned are usually B2C.Therefore they are not the direct competitors.

2. Beside RFID, what technology have you used for inventory tracking?
For Kerry logistic, it does not really use the RFID technology, as the cost is high and comparatively useless. Kerry Logistic has enough security approaches such as simple labelling and scanning for the staff to know where the product is located without RFID technology. What is more, being a third-party logistics company, actually it will be difficult to use the RFID alone, without the agreement from their clients. If they set up the RFID system within their warehouse only, the costs will be pretty high. Therefore, in order to be cost effective, technology like RFID may not be used generally unless the stakeholders in the whole supply chain get used to it.

3. Unlike your competitors, Kerry is an asset-based logistics company. Obviously, it reduces some uncertain market risk such as the raising rental cost. However, it will potentially reduce the future liquidity and flexibility in long term. Why do you have this plan or strategy?

As a logistics company, having its own assets can is beneficial to their daily operation since hardware is an important elements in handling their clients' inventory. Moreover, some of the warehouse are their own assets already, so it will not be a great burden that affect the cost.

4. Recently, Kerry logistic proposes to reconstruct the warehouse to columbaria. Why does Kerry have this plan instead of expanding the business so that the warehouse capacity can be fully utilized? Is this action implied that Kerry do have confidence with your core business?

Kerry Logistics has applied with the Town Planning Board to redevelop its 15-storey warehouse in Chai Wan into a columbarium. The proposed Island Memorial Center seeks to provide 120,000 columbarium niches. This is a great opportunity for Kerry Logistic to expand their business in different ways. Besides, before the reconstruction, the warehouse in Chai Wan is mainly for storing file and paper. However, once the proposal is being approved, the documents will be moved to the more center areas where is more convenience to the customers.

5. How can Kerry Logistics use the information system to enhance its effectiveness and efficiency?  
With the support of handheld devices, the Electronic Proof of Delivery (EPOD) solution provides real-time delivery status and details. Thus, the back-office staff are able to check the delivery status which means where is the truck now and how’s the process of the delivery, once the customers call the hot line to check the products, back-office staff are able to answer the questions. Besides, the handheld devices also provide other services included electronic signature, the customers are required to sign on the devices instead of the paper of the parcel.  The staff can even use the device to take photos and send back to the data base of the back office immediately.

6. On your official website, you stated that you’ve provided exemplary cleaning and repair services for "your" ISO tanks. It's not clear here if the ISO tanks are provided by Kerry itself or the customer. Could you please elaborate? 
It is one of the special services in Singapore and Indonesia. The ISO tanks are belong to the customer but not KerryLogistics, however, ISO tank could be provided if the customers request of it.

7. What do you do to protect the goods from being damaged during transport? 

It depends on which type of product is being transported. Generally, the staff will handle the products with care. For example, if it is a machine like a photocopier, they will wrap and put more patch to protect it. They will use different materials to protect the products included air bag or blankets. 

8. How does Kerry Logistics compensate their customers for loss due to the damage of goods?

Kerry Logistics will sign a contract with the customers before they start their co-operation. In case if there is any lost or damage, Kerry Logistics will find out the responsibility. If the responsibility belongs to Kerry Logistic, they will compensate the customer with the maximum liability as stated on the contract. However, if the responsibility is not belong to Kerry Logistics which means it is happened due to the unexpected accidents, they will talk to the customer. Most of the customer will understand and therefore do not ask Kerry Logistics for compensations. 

9. How does KerrierVISION support your operation?

KerrierVISION is designed to meet the individual needs of each and every customer. This online IT platform provides inventory, freight, purchase order and delivery tracking for the customers. Visibility, accessibility and connectivity are the backbone of this IT system.

Company visit - HIT

We have visited Hong Kong International Terminals Limited(HIT) on 27th March, 2015.

Background information about HIT

           Hong Kong International Terminals Limited is the first company which operates as a container port trust listed in Singapore. HIT was found in 1969 in Hong Kong at initially repaired ships as their main service. and its biggest boss is one of the most famous billionaires, Li Ka Shing. It contributes 8% of the total revenue generated of Hutchison Whampoa Limited. HIT has 12 berths operating at 4th, 6th, 7th, and 9th Terminal and consists of 2000 staff.

HIT logistic capabilities

            HIT runs "Load & Unload" as their business model. Their cranes can serve 30 containers in an hour. Most of the ships only stay at the port for around 1 day since this is an industry which focuses on mobility. The advantages of HIT is that the port here is a deep water harbor and lots of large scale ships with tons of cargo can stop by and drop off, also as a commercial free port, cargo does not have to go through the examination process. The port that HIT is currently sitting in is the 4th largest port in the world, right after Shanghai, Singapore, and Shen Zhen. In 2014, 23 million TEU were being served, which was about 28% of the total TEUs in the world that year. However, there is still some limitation for HIT, since all the terminals are already fully utilized and the Government is not going to build the 10th Terminal in a short period of time and this limits the improvement of HIT and gives time for other ports in the world to catch up with.









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Q & A part

Question 1: HIT owned a special management system called nGen, it is a system that control the while function of the terminal. What are the competitive advantages you gained from it? If nGen encounter any technical or unexpected problems, are there any safety measures for HIT to continue the terminal operations?

Answer:

There is a system called OMS which stimulates the actual situation of the harbor. nGen helps to simplify the procedures of loading and unloading containers. Guilder is also a system to help arrange the sequence of loading containers and it has high stability. The advantages of using these systems are higher efficiency, being able to work 24 hours a day. If the system really goes out of order, there are still 3 back-up sites to help functioning.

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Question 2: The terrorist like ISIS become more and more popular. What measures has HIT taken to ensure the safety of the cargo? How can you prevent the prohibit products inside the cargo?

Answer:

For HIT, most of the potential hazards that threatened them are high-risk operation, weather concerns, power failure and etc. HIT has a comprehensive safety management system, that allows them to beware of  any potential risk. This system also applies to the handling or storage of dangerous goods. This will help HIT to prevent from prohibit products harming the terminal.

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Question 3: The cost like the wage of labor is increasing. What measures has HIT taken to deal with the increasing cost?

Answer:

nGen can provide HIT as a solution to the cost management, the automation process provided by nGen can reduce redundant labor or operation and try to be cost-effective .

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Question 4: There are always typhoons hoisted in Hong Kong during summer. How serious would the typhoon affect your operation?

Answer:

It really depends on the wind speed, if the typhoon is too strong that the black rain signal or No.8 Storm signal is issued, then HIT will shut down operations. However, if the signal were no longer issued, HIT will soon recover their operation to avoid delays.

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Question 5: What are the effects to your company after the labor strike?

Answer:

After the industrial strike in terminal, HIT paid more attention to the welfare and wage of labor. In the recent agreements reached by HIT and external contractors, there will be a wage rise of 5.5% according to the inflation.

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Question 6: How does HIT get involved in corporate social responsibility?

Answer: We have built libraries and promote environmental measures, like student graffiti on rubbish bins. HIT also involved in the community care such as "Caring Company" or "Community Care Group" to contribute to disadvantaged. Moreover, HIT provides some scholarship to some outstanding students.

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Question 7: With the advancement of terminal business in Singapore and Mainland China such as Shanghai, Guangzhou and Shenzhen, What HIT is doing these years to keep its competitive edges and compete with other competitors?

Answer: HIT is continuously fighting for more land from government for building back offices. Besides from that, HIT as a transshipment terminal still own some advantages as the Pearl River Delta is highly relying on Hong Kong terminal to export goods.

Company Visit - Hactl

Company Visit – Hactl

We took a visit to Hactl on 13^th March 2015, Hactl have presented their company background, daily operation and the automation service.

Background of Hactl

Hong Kong Air Cargo Terminals Limited (Hactl) is founded in 1976, providing the import, export and transshipment service for air cargo. It is one of the most famous air cargo terminals in Hong Kong, and it owns the world largest multi-level air cargo terminal – SuperTerminal1.

Hactl mainly focuses on mainland business, and some customers from Middle East and England such as Emirates and British Airline. Most of the flights arrive to Hactl at night, so Hactl need to process the cargo at all time.

Operation of Hactl

Hactl has a motor intermodal service called Hacis which allows them to deliver the product to mainland quickly. One of the special features of Hacis is that they can provide non-stop border pass, as they have registered intermodal Transshipment Facilitation Scheme (ITFS) and Quick Pass Mode (QP). This helps Hactl gaining competitive advantage towards mainland market.

They also owned special automation services one called box storage system (BSS), which they can do the box storage automatically with less labor and low risk. Another service called Cargo storage system (CSS), it allows the cargo to do the loading nearby the airside.

Hactl also provides some special service such as livestock storage or dangerous good storage.

Additional Service of Hactl

Hactl aims to provide high quality service to their customer. They have a high standard against the cargo service. Sometimes customers will require some value-added service, Hactl will put a lot of effort to fulfill the requirement. Moreover, Hactl provides mobile apps -- Cosac Plus for customers to track the products, customers can easily find out the current status of their product.

Q&A Section

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1.      One of your service you provided indicated that “The first 48 Hours (from 0000 hours on the day of arrival & the Sunday and Public Holiday within the storage-free period)”, will there be large demand for such service?  How do you match the supply and demand if the service is free?

Ans: By providing 48 hours free storage, it will be an effective method to attract customers. As Cathay Pacific quit Hactl’s service and became a competitor, Hactl will need to use different strategy to attract new customers, also compete with this new competitor. Offering price incentives is one of the most effective method.

As Hactl now facing fierce price competition, the demand should be in a controlled range or otherwise the need of free storage strategy is less needed.  

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2.      How does the development of HACIS (Hong Kong Air Cargo Industry Services Limited) help facilitating the shipping processes of Hactl?

Ans: HACIS could be referred as an intermodal of HACTL. By using motor carriers, Hactl can deliver the products to Mainland quickly. The location of the HACIS terminal is nearby the HACTL express center, so this will shorten the cargo processing time and reduce idle time. Hacis’s trucks are registered with Intermodal Transshipment Facilitation Scheme (ITFS) and Quick Pass Mode (QP), which allows them to pass the border non-stop. For HACIS’ operation, they will start loading at 11:00, all the motors which need to deliver products to mainland will leave the terminal before 7:00. The timing is strictly controlled.

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3.      How will you response to the increasing demand caused by the third runway?

Ans: To Hactl, the impact of the third runway is positive. If the runway can operate efficiently, the capacity of the airport will increase, which means that the airport is able to accept more cargos or flight.

Increase in cargo capacity implies that there are more demand for cargo service, this will increase demand of Hactl and reduce idle capacity caused by Cathay’s competition. The supply will meet the demand more smoothly. 

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4.      Since the demand on air cargo has recently been increasing, how do Hactl deal with this problem and ensure your service quality?

Ans: Hactl has a tight standard for its quality control, they set a high target for the cargo service and other related service. For example, the requirement of flight unloading is to unload it within 5 hours and the target is 96%. Hactl is able to fulfill 98.3-4% of it. The automation service also helps Hactl to eliminate most of the possible mistakes. 

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5.      It was mentioned on your site that the latest Hactl drill demonstrated that systems could be fully resumed in a maximum of four hours should there be a system failure, has there ever been such failures in the past when such precautions were not in place? How did it affect your operations?

Ans: When the system is down, there will be backup computer facilities to restore all systems, and data will soon be replicated and saved. It can ensure that there is no data lost and the system will work as usual. 

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6.      Listed under 'Special Cargo Handling Facilities' is a livestock room at Hactl, what exactly does this entail and how do you handle it when there is outbreak of influenza virus?

Ans: The livestock room indicates that when some live animal such as horses or pets leave/come to Hong Kong, they will be placed to the livestock room and let them take inspection and rest.

As livestock need some special care or value-add service, Hactl provide air-conditioner for livestock, and sometimes when customers have special requirements, Hactl will cooperate with them and provide service. For example, if vets found that the polar bear is under great pressure, Hactl and customer will try to find a solution to make the bear relax in order to allow the bear to enter to cargo. So, Hactl will need to create a pool for them to relax within 1-2 hours.

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7.      In the age of globalization, will you consider to expand your business overseas?

Ans: Hactl has a large variety of customers, although it mainly focuses in mainland business, but Hactl also have some oversea customer such as Emirates Airline. Emirates’ flights are mostly from Middle East and Europe.

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8.      How do you make use of the automation to improve your efficiency?

Ans: One of the important part in Hactl is the Box Storage System (BSS) and Cargo Storage System (CSS), it is fully automated with 10000 storage capacity. The import, export and transshipment cargo will be processed by CSS and box storage by BSS. CSS and BSS can reduce labor requirement, avoid staff from dangerous work and it is under strict security control.

To improve efficiency for every stakeholder in cargo transportation, Hactl also provide some system, one is the Cosac Plus; it contains all information of customers, and it will be easy for customer to do tracking. Hactl also owned a mobile app called Cosac Mobile, which allow some stakeholder such as motor driver or customer to check the timing of loading or unloading.

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9.      What have you done in the environmental protection aspect?

Ans: Same as many other companies, Hactl do many recycling work. Wasted paper, CD, aluminum cans, batteries are the objects they would recycle. One special item that can be recycled in Hactl is the plastic tapes, as they required many tapes for packing process, these tapes can also be recycled. Moreover, Hactl owned a rooftop garden, they have some planting there for environmental purpose. For daily operations, the forklifts using in airport are all electric cars, it can reduce use of petroleum. 

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10.  How Hactl apply information technology in company operation in order to enhance its competitive advantages?

Ans: Same as Q8, the CSS and BSS will help Hactl to reduce excessive labor and reduce cost. Cosac Plus and Cosac Mobile will help Hactl and customers to track their shipments easily. These are unique systems that will help Hactl to gain competitive advantages. 

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