Mary has over 20 years experience as the editor of our Malaysian sister magazine, The Tyreman. Based in Kuala Lumpur, she writes articles for us on the Malaysian and other South East Asian markets.
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“NCT was founded by the Chairman Ng Chen Thing, who is my father, in 1983 as a small proprietorship forwarding firm. Initially, we only offered air freight transportation. At that time there was no forklift and material handling was a very labour intensive process. With the 5 of us, 4 boys and 1 girl, my father had the advantage in manpower. The joint effort within the family took us from basic services to more integrated and comprehensive logistics,” said Business Development Director Ng Vui Chuan.
Vui Chuan followed in his brothers’ footsteps and joined the company in 1987 after graduating from school. The involvement of the second generation in the family business brought new and innovative ideas and strategies, which helped NCT to grow tremendously. Its innovative management, highly developed hardware and software as well as skilled personnel gained it a reputation in the market and industry. Customers rely on the company’s prompt and high quality services while the industry sees it as a trendsetter. Due to its long establishment, the company was able to build long term and strong strategic partnership with many domestic and international firms.
eCommerce is Changing Logistics
“We are now looking at eCommerce and eStore logistics, catering to the warehouse, inventory and distribution needs of online retailers. Last year, Alibaba Group expressed readiness to help promote Sabah’s tourist attractions through its online travel marketing platform, Alitrip. Thus, there is a possibility that it will come to Sabah and we need to be ready to tap into the vast eStore and e-purchasing market potential.”
Compared to the logistics industry in China, Vui Chuan pointed out that the Malaysian logistics sector was 10 years behind. “We can see how eComerce is changing traditional logistics in China. As eCommerce continues to grow, retailers need to expand their distribution network, set up more fulfilment centres and leverage more third party logistics (3PL) partners. To enable faster delivery, there is a need to keep their bases closer to major population centres. In short, they will need to have a wider variety of stock, more buffer stock on hand and more space for storing due to individual order picking, packing and shipping directly to consumers. Of course, more space for returning items as well. This is where logistic players come into play.”
In addition, the modern consumers who shop online have expectations about delivery time; same day delivery and visibility over the entire delivery process in particular, which was far beyond previous generations.
At present, he continued, not many logistics companies were actively involved in these areas and they were mainly based in Kuala Lumpur, serving mostly cosmetics, clothing and baby products. He explained that eStore Logistics specialised in providing warehousing, inventory management and distribution services to online and multi-channel retailers.
“The greatest challenge for eStore is volume. But we need to overcome that as the future trend is definitely moving towards eCommerce and eStore. We are also looking at developing Kota Kinabalu as our eStore hub and distribute the products elsewhere, including Sarawak,” he added.
Integrated Logistics Overview
As a Lead Logistics Provider for businesses in East Malaysia, he said the company always made progress and found new ways to coordinate all aspects of supply chain management on its day-to-day basis. NCT’s commitment and vision were to empower local merchants and enhance their logistics solutions to compete with the international standards.
With 260 staff and more than 150 trucks and equipment in Sabah, NCT Forwarding & Shipping, U-Port Management Sdn Bhd and Budget Marine Sdn Bhd make up the NCT Group of companies. The Group’s full suite of services encompasses transportation, warehousing, management and container depot management with branches in Tawau, Tawau Airport, Sandakan, Lahad Datu and Labuan. By consolidating its operations within a single facility, NCT Group of Integrated Logistics is equipped to be a one-stop solutions provider.
Apart from air, sea and land forwarding and transportation, the Group also covers ship chartering, removal and storage, barge services, packing and moving, supply chain solutions, project mobile planning (project cargo transportation), trucking, combined transport arrangement, handling of livestock including export/import of live fish, seafood and live animals, insurance and customs brokerages, just to name a few. It has a container yard of 800,000 square feet (equivalent to 30,000 TEUs).
“A stringent focus on being a leader in innovative logistics solution helped us to remain competitive over the years. We have developed comprehensive tailor-made solutions to meet the specific requirements of customers. This is achieved through the understanding of the customers’ objectives and operation. Furthermore, we ensure the selection of highly trained personnel, continued investment in state-of-the-art technology, use of reliable vehicles and equipment as well as advanced warehousing and distribution facilities.”
As a responsible corporate citizen, he said the Group was committed to its Corporate Social Responsibilities (CSR). Among its CSR programmes was to work with the Malaysia Department of Environment (DOE) to dispose electronic waste in Sabah.
“Recycling e-waste protects human and environmental health. Improper disposal of e-waste leads to environmental pollution and this may in turn harm human health. The best way to treat e-waste is to recycle it properly,” he added.
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