3. COMPANY BACKGROUND
Transportation Market in KSA
Location: KSA(Kingdom of Saudi Arabia)
2,15 Million km2
27,6 M population
Estimated Size: ~540 Million $ US annually.
>1 Million cars transported inside/outside KSA annually.
Organization:International Group of Albassami
Founder:Saeed Al-Bassami(Deputy Head of the Council of Saudi Chambers of
Commerce and Industry’s national transport committee)
Founded in 1968
Services[1]:
Air Freight
Sea Freight
Door to door
Domestic/International Courier
Warehousing
Professional Packing
International Freight Forwarding
4. COMPANY BACKGROUND
Organization:International Group of Albassami
Daily Workload:
>1.000 Shipping Contracts
2.000-2.500 Bills of Lading(Konşimento)
44 Branches(+30 [8])
Fleet[6]: Largest Fleet in KSA
1100 Large Trucks
14 Small Car Carrier Trucks
15 Medium Car Carier Trucks
37 Large Car Carrier Trucks
250 Trailer Express Trucks
26 Mini Trucks
38 (Two Vehicle)Car Carier Trucks
+70 New Trucks(New deal) [7]
5. SOLUTION OF BUSINESS
PROBLEMS
Business Challenge:
Poor Asset Management
No audits on Drivers
No Freight Tracking
Operational Reporting Errors
Different Truck’s Availability Lists
Discrepant Shipping Reports from Different Branches and Headquarters
Competitors:
United Technology for Trading
Abdullah Hashem Company Ltd.
Al Tala'a International Transportation Co. Limited
Almajdouie Group LLC
Management
Encourage knowledge-sharing among branches and
Headquarters
Increase use of data by managers
Identify opportunity to use technology
6. SOLUTION OF BUSINESS
PROBLEMS
Organization:(New Buss. Models)
Redesign Business Processes
Build new channels of information flow
Train employes in use of the system
Technology(New services)
Deploy clustered Dell servers(Windows 2003) and over 270
clients(XP)
Deploy a DBMS(using Sybase Adaptive Server) and Clients(Using
SQL Anywhere)
Deploy SMS (Short Message Service) / POD(Point of Delivery)
Updating
Tracking shipment & Customer Info
Deploy a Web Page [9]
Online tracking with Bill/Phone Number
Rate Calculation
7. SOLUTION OF BUSINESS
PROBLEMS
Information System:(Customer-Supplier Intimacy)
Online Tracking
SMS Tracking
SMS on Delivery
POD(Print On Demand) Updating
Business Solution:(Competitive Advantage)
Up-to-date Client Data, Maintenance and Vehicle Tracking
Info(Every 30 Minutes)(Electro. Data Interchange)
Proper Budget Allocation
Improved Investment and Operational Decisions(Improved
Decision Making)
Better Audits on Drivers
Proper performance monitoringAppraisalsLoyal Staff
8. FINANCIAL STATUS BEFORE AND AFTER SS IN DOLARS US[4,5]
2004(Bef. 2005( SS* 2006(Aft. 2007(Aft. Chang
DESCRIPTION
SS*) Integ.) SS*) SS*) e(%)
Average Annual Benefit:$1.6M OPERATIONAL
INCOME/EXPENSES
1 Expensed Cost:$2.36M
140,167,680 143,028,245 146,772,821 145,305,093 2.6 Income
2 115,713,037 118,074,528 119,767,075 118,569,404 1.4 Expenditure
24,454,643 24,953,717 27,005,746 26,735,688 8.2
3
Payback Period Years: 1.83 years Gross Income
ADMINISTRATIVE
4
EXPENSES
5 ROI:%107
2,427,039 2,476,570 2,477,987 2,453,207 0.1
General and
Administrative Expenses
Salaries of Members of
6 1,214,568 1,239,355 1,241,123 1,228,712 0.1 the Board of Directors
432,507
PERSONNEL TRAINING 442,002
441,334
HARDWARE 437,582
SOFTWARE 0.2 PROFIT
7 YEAR Fixed Assets
8 2,377,743 ($)
2,426,268 ($) 2,501,254 ($) 2,476,241($) 3.1 ($) Fees
Bank
9 2004
6,451,856 06,583,527 0 6,662,366 0 6,595,742 0 1.2 0
Total Expenses
BANKING INCOMES
2005 263,250 6722 1200000 365,019 376,457
10 18,002,786 18,370,190 20,343,380 20,139,946 10.7 Output Main Activity(3-9)
Foreign Currency
11 2006
17,850 263,250
18,214 0 18,755 0 18,567 0 3.0 2,364,819
Valuation Difference
12 903,183 921,615 1,000,278 990,275 8.5 Other Income
13 18,577
2007 18,956
263,250 0 20,887 0 20,678 0 10.2 Capital Gains
2,156,707
Net profit for the year
14 18,942,396 19,328,975 21,383,300 21,169,467 10.6 before Zakat
15
495,998Government Taxes assumed constant.
506,120 572,082 566,362 13.0 Zakat
Net profit after
16 18,446,398 18,822,855 20,811,217 20,603,105 10.6
Zakat(15-16)
*SS: Shipment System
9. CASE STUDY QUESTIONS
What systems are described here? What valuable
information do they provide?
Enterprise Systems
Business Information Value Chain Bills of Lading
Revenue Monitoring
Budget Control
Shipment Orders Performance
Customer Info Monitoring
Web Services Branch Audit
SMS Driver Audit
Tracking Appraisals
POD
Updating Shipment Schedules
Customer Shipment Capacity
Feedback Shipment Orders
Vehicle Tracking Info
10. CASE STUDY QUESTIONS
What value did the IT/IS investments add to
Albassami?
Achieving strategic business objectives
Operational excellence
New products, services, and business models
Customer and supplier intimacy
Improved decision making
Competitive advantage
Any other questions?
11. CONCLUSION
Indeed, Albassami’s job is feasible with the help of IT
Technology
It would be very difficult for the Company to
integrate all Branches on a common platform
without IT Technology.