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SIA's spending

How? More on Less on


Replaces its fleet more
frequently Buying new aircraft Price per aircraft
Fuel,
Shorter period of depreciating
aircraft Depreciating aircraft maintenance, &
repair
Invests heavily in inducting &
retraining employees Training Salaries

More cabin crew members on Sales &


each flight Labor costs on flights
administration
Invests in both radical & Back-office
incremental innovations Innovation
technologies
How?
Place large orders & often pays in
cash

Its fleet is young & energy effcient

Keeps salaries low by offering


bonusses of up to 50% depending on
SIA's profitability
Customer loyalty, a lean HQ, &
constant cost cutting
Lag behind rivals in areas that don't
affect the cusomer experience
Resource attribute Rare Valuable Inimitable Nonsubstitutable
Initial resources
Singapores Yes-few other sites Yes-high volume No-other locations in SE Asia can No, there are nearby
location as convenient for shipping route expand their Ports Ports capable of
transhipping AsiaEurope development esp.
Malaysia
The natural harbor Yes Yes No-possible to create at high cost No-shippers could in
principle use another
nearby Port
Additional resources
Capital for Yes, relatively so for Yes No, funding might be possible from No, capital may be
infrastructure- Asia taxes, world agencies available from other
foreign investment sources
IT and operations Yes due to size and Yes No, in principle, but few Ports have No if another Port is
capabilities for a scale of Port this scale to provide acceptable
Port operations service
IT management Yes Yes No in general, yes for running a Yes-outsourcers do
large Port not have experience
with this scale
Combined resources
Location, harbor, Yes Yes No, but difficult to catch up No
capital for
infrastructure,
foreign investment

Infrastructure, IT, Yes Yes Difficult Difficult


operations and
Port equipment
IT management Yes Yes No in general, yes for running a Yes-outsourcers do
skills, Port large Port not have experience
technology and with this scale
operations
How? Benefit
Maintain & rejuvenate unloading tools Increase the unloading productivity
Decrease the heavy equipment
breakdown time
Implement Terminal Operating System Decrease the transaction time at the
(TOS) gate
(similar to PSA's TRADENET) Increase the data accuracy in
document inspection at the gate
Simulator training Optimize the use of labor
Increase QCC operator skill, so that
the unloading process accelerates

How? Benefit
Implement E-Services Sytem Application
TBRCS (Truck Booking & Return Cargo Easiness to maintain the allocating
System) & schedulling of container & truck
(similar to PSA's EZShip & CargoD2D) Accommodate the business activity
through an interface between road
carrier and stakeholders
Increase efficiency of loading and
unloading process
E-payment Fasten the billing-payment cycle
(similar to PSA's EZBill) High accuracy of the data
Progressive tariff (the more number of stacking The importer will quickly discharge
days, the more its tariff) the container and not linger over
Autogate system Accelerate transaction process at the
gate
24 hours service
Simplify the inspection process of
document & goods at the gate

How? Benefit
Optimizing INSW (Indonesia National Customer could easily track the
Single Window) permit document, and container
status & movement
(consists of Tradenet and Inaportnet) Easily coordinating of the relevant
institute which involved in the
import-export regulatory process
from the permission side & the
container movement

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