78 FGV HOLDINGS BERHAD ABOUT FGV MANAGEMENT DISCUSSION & ANALYSIS VALUE CREATION Group Business Review Logistics & Others SUSTAINABILITY HIGHLIGHTS Our transport operations have been committed to energy efficiency and carbon reduction initiatives. The existing programmes include: Route Optimisation for FGV trucks to reduce mileage Automated Control (CAN-Bus) for heavy vehicles towards reduced emissions Digitalisation through e-Delivery Order (eDO) and Smart Fuel card for convenient fuelling up at any petrol station Internal Regulatory and Standards for Maintenance towards optimal operational efficiency and building of a Euro-5 engine fleet for cleaner emissions Challenges Action plans Outcomes • Pipelines replacement at Kuantan Bulking Installations (KBI) • Increase in external customer contribution • Handled six new customers with total throughput of 237,000 MT • Surpassed more than 80% mark for customer satisfaction survey for the past consecutive seven years • Successfully reduced variable costs ICT • Fast-changing technological trends • Challenges by local competitors and global players • Limited R&D capabilities • Strategic and smart collaborations with selected principles or higher institutions • Transformed own IPs and commercialised these as SaaS on cloud, hence transforming the company from Software Integrator (SI) into Technology Player • Established an Innovation Lab Centre for R&D on Technologies as well as scouted for research funds/grants on new technologies • Prodata Business Collaboration & Partnership unit has been set up to galvanise potential strategic and smart collaborations. The team is finalising major partnerships which involve: – Sales & Marketing Partnership – Universities collaboration for the R&D and Resource Planning • Focusing on Prodata’s IP that can be commercialised such as: – WMS – Integrated Logistics Management System • By 2022, Prodata is targeting to market its SaaS products that can be marketed to any parties. Among the pioneer products are: – Project Management Performance Tools – Professional Service Desk Systems • Prodata has established its Innovation Lab Centre under the Strategy & Technology Management unit. This unit is actively commercialising our IPs, developing our own SaaS products, and strategic collaboration for new research funds/grants Travel • Weak demand for travel due to movement control order • High dependency on internal business • Competitive market for Umrah business • Focused on growing KedaiFGV and e-commerce platforms, our non-travel businesses • Participated in tenders and pitched for new corporate clients for ticketing • Offered attractive Umrah packages • Developed an agent system to strengthen our sales force • Sales for KedaiFGV grew 15 times in FY2021 • Managed to open new accounts for ticketing business. The new customers are Employees Provident Fund (EPF), Suruhanjaya Syarikat Malaysia (SSM) and Malaysian Agricultural Research and Development Institute (MARDI) • Successfully brought on board 70 new agents from all over Malaysia to focus on Umrah sales
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