Highly Confident Transportation:

Dynamics of IT Application in Supply

Chain Management

Supply Chain Management

Professor: Dr. DaeRyong David Kim
2011 Spring Term II

By: Rashmi Shrivastava

History

•Taiwan based transportation company found in

1938.
•Taiwan‘s first integrated logistics service provider.
•HCT is also Taiwan's Blue Ocean strategy’s
benchmark company.
•HCT is professional Third-Party logistics provider.
•1972 changed the name as “Hsin Chu Trans
Transportation.”
•Chen Rong-chiuan was the main person behind
HCT’s success.
•2007, HCT was awarded the Taiwan Manpower
Innovation Award
•Website:http://www.hct.com.tw/
•
Issues

Globalization & Competition

Technology

Political and Economic Constraints

Issues Logistics and customer service

Organizational Consolidation

Quality and durability of Taiwan’s road

Lack of predecessor
Solutions

Globalization &Competition
•In 2000 HCT lunched Business process reengineering which makes
it a high value-added company in high-tech service industry.
•HCT made changes to its strategies
•HCT started to venture into 3PL sector in 1991.
•P&G and Nokia are HCT’s main customer
•In 2006 HCT became integrated logistics service provider.
•HCT had become the largest company offering air freight services
between Taiwan and China.
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Solutions

Technology

•Established first information center in 1983

•Adopted barcode system
•HCT build a computer network in 1988
•Electronic Data Interchange system
•HCT build its e-commerce platform and new website
•Implemented digital signature and image authentication for tracking.
•• •In 2003 HCT introduced real time tracking system.
•HCT implemented an e-commerce and mobile technology model.
•Handy terminals simplifies the tracking of good
•Installation of conveyor automated its platform.
Solutions

Political and Economic Constraints

•Business to business network is established in 1993 to supported
Taiwan department of Commerce’s plan to promote automation in
business.
•To develop Taiwan as a global logistics center Taiwan’s government
also changed some laws and regulations.
•Taiwan government had simplified the custom clearance revised
commodity inspection law.
•Foreign companies were given tax exemption for distributing their
goods through logistics centers in Taiwan.
•
Solutions

Logistics and customer service

•By using Quick response and efficient Consumer Response in Electronic data
Interchange system enabled HCT to provide services that integrated the
various flows in a logistics system.
•HCT build its e-commerce platform and new website.
•HCT adopted enterprise Resource Planning (ERP).
•In 1991,HCT established Jetes Express delivery to provide express delivery
service.
•In 2005 HCT's customer were able to check real-time consignment status
online.
•HCT had the largest team of service vehicle equipped with GPRS
capabilities.
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HCT’s Devised System of Deliveries
Solutions

Organizational Consolidation

•Partnership with Procter & gamble (P&G)

•In 2000 Sagawa express (Japan’s home delivery company) acquired a minor
stake in HCT.
•In 2007 HCT had formed partnership with Tianjin binhai international
Airport to build the first passenger and cargo management centre in China to
serve business between Taiwan and China
•
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Solutions

Quality and durability of Taiwan’s road

•Alliance with Danish company in 1991 MAERSK Line, was first partner in
Taiwan to integrate land and sea transportation.
•Alliance with TNT in 1998 completed the integration of land and sea
transportation that had started with the HCT-MAESRK Line alliance.
Solutions

Lack of predecessor
There was no precedent in Taiwan for the company to learn from.
As a result, the company had to test out new technologies for itself.
•HCT was first transportation company in Taiwan to adopt barcode
system for tracking goods and shipments.
•Taken the initiative to integrate land and sea transportation.
•HCT was first logistic company in Taiwan to venture in 3PL
arena.
•In 2004 HCT build the first digital signature and image
authentication system in Taiwan.
•Build the first passenger and cargo management centre in China

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Recommendation
Support Taiwan Government in development plans

Technical training to employees, customers &partners

Invest in Research and development

Try to extend geographical boundaries

Govt. should try to improve the current condition

Recommendatio
n HCT should also try to increase its market share

Motivate employees

HCT should also try to increase its market share

HCT upgrading technology & strategies as per market standards.

Achievements of HCT

Year Achievement

1991 Strategic alliance with Denmark Masklin and was the first to combine
the operation of oversea land and sea transport in Taiwan
1993 Be the first one to import EDI freight in Taiwan
2000 Cooperated with Sagawa to promote the Business Process Reengineering
(BPR)
2004 Selected as case study in the book of "'s version of Blue Ocean Strategy"

2007 Awarded the “National HRD InnoPrize” from Council Of Labor Affairs
Executive Yuan Taiwan
2008 Acknowledged as success story of the University of Hong Kong ACRC
(Asia Case Research Center)
2009 Won the "Award for the year manager of the services" and "Outstanding
IT service management "
2009 Awarded the “2009 Commercial Service Brands (TSCB)”
Conclusion

This case is an To survive in this

dynamically changing This case showed us
example of how an that, how logistics
organization can global industry,
adapting the changes can creates value for
improve its position in its customers,
domestic as well as is the only key to
survive. partners, whole
global market with the society and
help of IT, innovation country’s economy.
and commitment to
provide good customer
service.
Relation to the chapter

Chapter 1 Chapter 2
•
•If we look closely to the case due to
•We can understand how HCT as a
globalization HCT extend its boundaries.
And to remain competitive in global logistics company added value to its
industry HCT used technology very customer, partners, and society.
extensively. Technology played vital role in •HCT is an excellent example of
HCT’s success.HCT’s main motive was how logistics can affect the
provide high level of customer service and economy. Due to HCT Taiwan gets
for which they implemented different more business from other countries
technology, strategies Taiwan government which also boost its economy.
also changed their laws and rules to •
develop Taiwan as a global logistics center. •
•Then major issues faced by HCT can be •
understood by issues given in chapter 1 i.e.
complexity, Information, cost, technology
etc.
•HCT is an example of how organizations
have evolved from physical distribution
management to logistics management.

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 T hanks You!

Questions?

Rashmi Shrivastava