272228_WRHS INDVD ASS_2

BPMG3133 WAREHOUSE MANAGEMENT
SEMESTER A211 (2021/2022)
GROUP A

SECOND INDIVIDUAL ASSIGNMENT:
A. What is the entrepreneurial opportunity that you observed from the company?
B. What is the entrepreneurial experience that you find in the company?
C. How does the company respond to risk tolerance in their daily operation?
D. Does the company have a clear direction on their internal locus of control?
E. Do the company set their target of achievement and perseverance?

PREPARED FOR: ASSOCIATE PROF. DR. HERMAN
PREPARED BY: SHAH BIN ANUAR

NARISSA ZOLHASRI 272228

TABLE OF CONTENT

1.0 INTRODUCTION 2
Figure 1: The logo of CJ Century Logistics Sdn Bhd. 2

2.0 THE ENTREPRENEURIAL OPPORTUNITY IN CJ LOGISTICS 3

3.0 THE ENTREPRENEURIAL EXPERIENCE IN CJ LOGISTICS 4
Figure 2: The list of CJ Logistics global family. 5
Figure 3: Another award that CJ Logistics have received. 6

4.0 CJ LOGISTICS RESPOND TO RISK TOLERANCE IN THEIR DAILY OPERATION
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5.0 CJ LOGISTICS HAVE A CLEAR DIRECTION ON THEIR INTERNAL LOCUS OF

CONTROL 7

6.0 CJ LOGISTICS SET THEIR TARGET OF ACHIEVEMENT AND PERSEVERANCE
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REFERENCE 11

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1.0 INTRODUCTION

CJ Logistics Holdings Bhd was founded in Korea in 1970 and provides multiple logistic
services and supply chain solutions such as integrated logistics services, procurement logistics,
oil logistics and data management solutions. In 1988, CJ Century Malaysia were builded and
have been in charge by CJ Group in 2006 and since then they have expanded their operation.
Since 2016, Datuk Lee Say Tshin is a chairman of CJ Logistics Express Malaysia and has
decided to be a courier company that is critical in the future with rapid development in
e-commerce and discernment of smart devices in Malaysia.

They grow strong together with vision to keep their company following high-tech
processes with strategic collaboration with others and be a recognizable third party logistics
company that is able to achieve customer’s supply chain with implementation of better quality
integrated logistics solutions. Supported by CJ Century’s objective is to enhance the interest of
stakeholders with their efficient business operation. Other businesses that they offer are
warehouse management, global shipping, chartered and bunker. In Malaysia, CJ Logistic
Malaysia head office located at Bukit Raja, Selangor has 675 vehicles and 18 warehouses. One
of their warehouses is 3 single storey warehouses located at CJ Century Logistics Sdn Bhd, Lot
8, Lingkaran Sultan Mohamed 1, Bandar Sultan Suleiman, 42000 Port Klang, Selangor Darul
Ehsan.

Figure 1: The logo of CJ Century Logistics Sdn Bhd.

Nowadays, integrated logistics keep growing more complicated with intense rivalry and
volatile markets, along with critical demands. With that, CJ Century Logistics provides matching

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service profiles that achieve market and industry demands while continuously adjusting solutions
and providing exceptional logistic solutions at every level of complication as well as operational
dynamic. CJ Century Logistic Malaysia confident that they able to serve their global customer
demand in logistics sector because they have a professional collaboration with both air and sea
carries to ensure that enable to make sure full coverage from customers logistics demand from
every sort of location. They have been one of the members of the International Freight Logistics
Network starting in 2008 and also included domestic federal ports such as Port Klang, Johor
Port, Port Tanjung Pelepas, KLIA, Kota Kinabalu, Bintulu and Kuching. CJ Logistics Express
Malaysia carried their goals to be a top-tier third party company in Malaysia with the best
services. For domestic delivery CJ Century Logistics uses road transport to carry their goods
from the distribution center to locations in Peninsular Malaysia.

2.0 THE ENTREPRENEURIAL OPPORTUNITY IN CJ LOGISTICS

Every entrepreneur will look for chances by paying attention to changes in the
environment, trends in the economy, and social issues. Entrepreneurial opportunities are
frequently used to describe situations in which an entrepreneur seeks to maximize attainable
profits by selling a product or service at a price higher than the cost of production. Based on my
observation, CJ Logistics is also one of those who are able to manage their entrepreneurial
opportunity in their warehouses. If the goods are carried out correctly, the storage procedure
maximizes the amount of space available in the warehouse while also increasing worker
efficiency. Storage processes in warehouses need to be optimized as efficiently as possible in
order to guarantee to make full use of all of the available space in the warehouse. The CJ
Logistics believe that a systematic allocation of the most appropriate storage space for a
particular goods may help the inventory management. To begin with, CJ Logistics has
implemented a logistics innovation system based on TES to ensure that their inventory
management and performance are very successful in order to reach the high profits that were
targeted.

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Products are valuable assets, the more products that can be stored in the warehouse, the
greater the profits. They are pioneering smart logistics and safe logistics digitization technologies
by utilizing TES in response to a quickly changing market environment. They believe that an
efficient warehouse operation is one that utilizes technologically advanced and effective
technology to complete a task. CJ Logistics is working to improve its operations and find ways
to make them more automated by being a leader in automated logistics operating systems and
innovative technology such as autonomous long distance delivery services. For instance, CJ
Logistics warehouses use digital picking to manage a wide selection of digital goods to reduce
lead time using Intelligent 6-sided scanners, Quick picking systems, AGV-Based Picking
Solution, Robotic Palletizing & Depalletizing Solution and others to support parallel operations.
and elections. With the right equipment, they can partially or completely automate many of their
existing warehouse tasks, allowing their employees to do more tasks in less time. Furthermore,
proper warehouse equipment can streamline processes, by reducing manual labor, and maximize
productivity and contribute to more efficient overall operations. These benefits can maximize
employee productivity and increase efficiency in the warehouse so that it can focus on fulfilling
more orders more quickly.

3.0 THE ENTREPRENEURIAL EXPERIENCE IN CJ LOGISTICS

For almost 90 years, CJ Logistic has been solidly established in the logistics industry,
with a network of 154 companies based in 40 countries, 154 cities, and 279 hubs, with the goal
of significant worldwide expansion. Without a doubt, CJ Logistics has a very strong
entrepreneurial experience, creating $ 9.66 billion in revenue (USD) in 2020 and becoming a
leader in the logistics business and opening up chances to improve people's quality of life, which
has driven the country's economic growth. Furthermore, CJ Logistics has successfully entered
the logistics industry in rising developing countries, beginning with Vietnam in 1966 and
expanding to the United States, China, Japan, and others as a dependable logistics partner. CJ
Logistics has been building a global business platform to accelerate its growth as a global
logistics firm since 2013. CJ Gemadept Logistics & Shipping in Vietnam, CJ Darcl Logistics in
India, CJ ICM Logistics in the UAE, CJ Speedex Logistics and CJ Smart Cargo in China, and CJ
Century Logistics in Malaysia are a few examples.

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Figure 2: The list of CJ Logistics global family.

Aside from that, CJ Logistic has acquired numerous awards and certifications from other
parties, by demonstrating their great entrepreneurial experience. For example, CJ Logistics in the
United States, has earned accolades in the logistics industry between the United States and
received the American food logistics publication "Food Logistics" awarding them the "Best 3PL
and Cold Storage Supplier 2020." They have received attention for their cutting-edge cold chain
logistics efficiencies, such as temperature monitoring technology, warehouse management
systems, and transportation management systems. Furthermore, as a result of their efforts to
implement ESG management principles by guaranteeing its position as a pioneer in green
logistics, they were awarded as "Green Supply Chain Partner" by American logistics magazine
Inbound Logistics two years in a row in 2020 and 2021. Aside from the guaranteed
entrepreneurship experience, CJ Logistics is regarded as a firm that provides solid logistics
services while also delivering excellent customer service in the logistics sector.

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Figure 3: Another award that CJ Logistics have received.

4.0 CJ LOGISTICS RESPOND TO RISK TOLERANCE IN THEIR DAILY OPERATION

Based on the numerous sorts of threats, each company has their own unique risk
tolerance level. If some businesses employ similar risk measurement or rating scales with the
same level of risk tolerance should be applied regardless of the source or risk. Risk tolerance is a
measure of an organization's ability to perform at a certain level of risk, either qualitatively or
quantitatively, and it is also utilized as a significant factor for making risk-based decisions. CJ
Logistics categorizes and manages whatever risks have a substantial impact on the business's
day-to-day operations. They have developed a mobile reporting method that enables fast
response via internal communication in the case of any concerns or incidents that might occur
promptly, regardless of place or time. Because of the availability of this system, they may get
reports on dangers occurring at work sites around the world and be able to take rapid action if
necessary. CJ Logistics divides their everyday risks into two categories which are financial and
non-financial, such as operational risk, market, labor, safety and environment, customer, and
regulatory system.

The growing strong rivalry in the worldwide market is one of CJ Logistics' answers to
risk tolerance in their everyday operations. In the logistics industry, where transportation services
are built on networks and services supplied, competitive advantages differentiate us from
competitors in terms of new basic advantages, service innovation, and users of new and
cutting-edge technology. Because of the global expansion of extensive logistics services,
competitors are sprouting up like mushrooms after rain. Flexport, UPS Supply Chain Solutions,
DHL Group, and others are examples of CJ Logistics' competitors. CJ Logistics emphasises and
differentiates their services through ongoing research and development (R&D) methods, while
establishing new markets and extending their business areas through mergers and acquisitions
(M&A) methods. Furthermore, they are devoted to strengthening the brand's quality and
reputation in order to attain market competitiveness.

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Furthermore, the response towards climate change is a matter for everyone on the earth.
Although the government has implemented rules such as a greenhouse gas (GHG) and target
management system, the emissions trading system is quickly expanding, as is the energy
paradigm change. There are various standards that logistics businesses must meet in order to
handle transportation and company operations in line with environmental regulations. CJ
Logistics has an environmental management system (ISO140001) in place at all of its operation
sites and testing electric trucks as part of its commitment to reducing environmental effect and
protecting the environment. They will also move forward and respond to climate change more
quickly by implementing more effective plans and creating advanced environmental
management systems.

5.0 CJ LOGISTICS HAVE A CLEAR DIRECTION ON THEIR INTERNAL LOCUS OF
CONTROL

A person's locus of control is a psychological concept that refers to how firmly they
believe that they have control over situations and experiences that affect their lives. In business,
locus of control usually refers to how entrepreneurs understand the core causes of their
company's success or failure in day-to-day operations. Having an internal locus of control can
help to control the company's path in the face of threats. According to my observations, CJ
Logistics has a focal point for dealing with business challenges or concerns. CJ Logistics,
without a doubt, is one of the largest logistics infrastructure centres and mega hubs in Korea,
providing the best logistics services in the country. CJ Logistics specialises in offering customer
solutions that are compatible with worldwide Electronic Product Code (EPC) projects and
provides a wide spectrum of project logistics.

They also have specialised engineering capabilities based on core internal equipment and
unequalled experience in many places throughout the world, which is why I believe CJ Logistics
has a clear internal locus of control by providing comprehensive logistics solutions. Apart from
logistics services, they also provide oil refining services, petrochemical plants, hydropower
plants, and desalination facilities, and have recently acquired more than 46 logistics project
businesses in 26 countries. With unrivalled efficiency in the management and direction of the

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logistics process due to professional engineering skills. As a result, they provide 130
professionals with high levels of performance in transportation planning, incoming customs
clearance, and installation supply project logistics solutions in road transportation, sea and air
cargo transportation.

CJ Logistics also provides a comprehensive range of industry-specific consultants and
logistics-based services. Firstly, they provide service for consumer packaged goods (CPG),
which has the most extensive transportation and delivery network and infrastructure in Korea, as
well as convenient automation facilities and services to customers. Second, they provide
operational expertise services for e-commerce and retail logistics solutions that meet the needs of
customers using specialised systems and automated facilities of e-commerce and retail
distribution networks divided into three temperature controlled logistics categories which are
frozen, cold, and ambient.

Third, they provide health care logistics by providing specific networks for medications
and managing the temperature of each vehicle based on the state of the medication. CJ Logistics
also provides GPS-based real-time shipment tracking and 3D-viewable inventory management.
Fourth, CJ Logistics provides integrated street shop services, as well as bulk packaging and
inspection services, to the fashion and beauty industries. CJ Logistic also has the largest sorting
capacity in the logistics business based on automated facilities and offers Operational Visibility
Services based on cargo, VOC, and supply flow tracking. CJ Logistics has a clear internal locus
of control, in my opinion, because they use expertise and skilled staff. CJ Logistics provides
complete services encompassing the full process of overseas transfer, from packaging through
shipping, storage, clearance, and systematic delivery.

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6.0 CJ LOGISTICS SET THEIR TARGET OF ACHIEVEMENT AND PERSEVERANCE

In my opinion, CJ Logistics has met its goals and persevered as its aim to join the market
and grow its business to North America by acquiring a logistics company in the United States
has been realised. CJ Logistics successfully purchased DSC Logistics, a prominent logistics and
supply chain management company in the food market, and CPG was renamed CJ Logistics
America. DSC generated 493 million USD in annual revenues by offering logistics solutions
such as transportation, warehousing, and delivery services to the food, manufacturing, medical,
and retail industries. CJ Logistics intends to grow its business in the American logistics market
by acquiring DSC. There are currently many multinational logistics corporations competing in
marketing, but CJ Logistics intends to expand its footprint in America with a strong local
presence in the Warehousing and Distribution (W&D) sector. CJ Logistics intends to compete
with top-tier competitors in the W&D sector by combining DSC's local presence and industry
expertise with CJ Logistics' operational capabilities, a supply chain management consulting tool,
and high-tech logistics solutions. CJ Logistics also intends to achieve synergistic advantages by
cooperating with established enterprises in the United States. CJ Logistics has 30 logistics
networks and 15 warehouses across the United States, Canada, Mexico, and Brazil.

Beside that. CJ Logistics has opened Smart Hub Bagna, Thailand's newest distribution
facility, with the goal of becoming one of the greatest capacity distribution centres and increasing
competitiveness through infrastructure and network growth to become a logistics leader locally
and globally. CJ Logistics intends to establish a logistics network across Asia with a 'Pan Asia
No.1' strategy. CJ Logistics Smart Hub Bangna is South Korea's first smart hub, fully equipped
with cutting-edge technology and proven advanced systems such as an autonomous wheel
clearance system and ITS (Smart Scanner). With additional infrastructure enhancements, this can
increase efficiency even more by increasing capacity and allowing segregation of up to 408,000
packaged goods each day. CJ Logistics Smart Hub Bangna, with easy access to the capital
Bangkok and the countryside, is the first stage in exporting Korea's Number One technology to
Southeast Asia via a customs hub in Thailand.

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CJ Logistics is transferring skills and competences based on TES in order to expand its
local packaging business abroad (Technology, Engineering, Systems & Solutions). With
automation that includes a wheel separator that automatically moves the box to the destination
dock based on its own area code and an Intelligent Scanner (ITS) that automates the filling
process with barcode scanners, route bill numbers, arranges automated equipment and internal
cameras, and provides shipping cost estimates by measuring the volume of each material. This
unique facility confirms best-in-class solutions with the shortest possible distribution time.
Customers are guaranteed on-time delivery and quality service. Companies can give a variety of
services to company customers by increasing recruitment timeframes. The hub also intends to
establish a custom E-fulfillment facility, where consumers will be able to receive a variety of
customised services on-site. CJ Logistics is dedicated to providing exceptional logistics services,
including contract logistics, to both local and multinational corporations, while maximising
customer value via continual development and innovation.

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