Agri-business Across Malaysia and Indonesia

This is indeed the third world, but they must deal with first world global supply chains and technology.

By ·

I spend most of my time working on global supply chain consulting engagements.  But from time to time, I also do Expert Witness work for legal cases involving supply chain issues.

At the moment, I am working on a legal case involving agri-business across Malaysia and Indonesia.  I spent last week in Kuala Lumpur, Malaysia, but in order for me to complete my research, I needed to visit a plantation in Sabah, on the Island of Borneo.  So off we flew to Borneo. I never would have imagined visiting here for any reason.

Arriving after midnight last night, I couldn’t help feeling a little creepy as we sped from the airport to town in a rickety old taxi.  The third world flew by the windows.  The ancient driver was going 140km/hr until I begged him to slow down. What if we broke down or had an accident?  Were there headhunters lurking? The $50 “best hotel in Sabah” turned out to be rather scruffy around the edges and even the bottled water looked suspicious.  But in the morning, things looked better. Our driver arrived with cold water and a 4-wheel drive Jeep to take us the 50 miles to the plantation, over rutted dirt roads. Finally, we arrived at the estate plantation, a bit rattled from the very bumpy ride.

As remote as this plantation is, in the hot and humid jungles of Borneo, it strikes me that the supply chain issues faced by this company are not that different from any other company large or small, rural or in a metro area.  Here, in the wilds, the managers are worried about planning and forecasting, raw materials such as fertilizer and seeds, labor and transportation.  Harvested product needs to be processed within 48 hours; shipped to the processing plant via rag top trucks.  Then, processed product must get to market to meet customer demand.  The managers worry about IT systems to capture production data and pay the workers.  They do analysis for continuous process improvement.

The plantation workers live in plantation housing and their bare-foot children attend plantation schools.  The people are poor, but very friendly.  Hopefully, the year-round harvest is good, and too much of it won’t be eaten by tree rats or monkeys.  Even rain can ruin the workday.

This is indeed the third world, but they must deal with first world global supply chains and technology. It is gratifying to know that the topics we master as supply chain professionals are truly universal.  The skills we learn apply across industries and continents and cultures.  The differences are fewer than we might expect.

It was an interesting adventure and about as far away from my Silicon Valley home as one could possibly get. At least at home, I don’t have to deal with monkeys…at least not that often.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
How Lean is your Lean Quality Program?
Avoid quality program bureaucracy that can sap logistics productivity and increase costs
Download Today!
From the September 2016 Issue
Indecision revolving around three complex supply chain elements—transportation, technology and organizational structure—finds many companies waiting to commit to a strategic path. However, waiting too long will only result in a competitive disadvantage that will be difficult to overcome in today’s fast-paced, global economy.
Time for Asia’s ports to rebuild
Is the freight recession upon us…again?
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Supply Chain Best Practices: Visibility to In-Transit Inventory
During this webcast you'll learn on how various organizations have gained instant access to in-transit parcels and given access to this information to stakeholders.
Register Today!
EDITORS' PICKS
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...
2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...

Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...
Digital Reality Check
Just how close are we to the ideal digital supply network? Not as close as we might like to think....