This study aimed to identify the factors contributing to and
hindering the effective deployment of pick-up and drop-off
(PUDO) services related to courier services in Pusat Ekonomi
Digital (PEDi) in Sarawak by employing both quantitative and
qualitative methods. An interview was conducted with PEDi
managers who are currently operating PUDO services and service
providers to gather information for the development of an index
instrument that was used to identify suitable PEDi to deploy the
PUDO service. Additionally, to determine factors contributing to
and hindering the effective deployment of the service, a survey
was conducted on the PUDO users from four (4) PUDO@ PEDis. The
study found that factors contributing to the effective
deployment of PUDO services included reliability,
responsiveness, affordability, consumer assurance, empathy with
the consumer, and trust in the service. Factors hindering the
effective deployment of PUDO services identified from the study
included a need for more awareness and understanding among
customers and the availability of several competitors in the
community. In the interest of identifying suitable PEDi for
courier service providers to deploy PUDO services, factors such
as human resources, business space and storage availability and
condition, internet and telecommunication network services,
security factors, the concentration of digital entrepreneurs in
the community, community size, competitors, and availability and
numbers of local products were considered. Based on these
findings, the study provides recommendations for courier service
providers to deploy PUDO services at PEDi located in Sarawak
effectively. In conclusion, this study provides valuable
insights into the factors contributing to and hindering the
effective deployment of PUDO services related to courier
services in PEDi in Sarawak. Courier service providers can use
the findings of the study to improve their PUDO services and
deploy them effectively in Sarawak.
Keywords: e-commerce, courier service.
02 introduction
The parcel point network, also known as PUDO (Pick-Up and
Drop-Off) was created as one of the measures for attaining
e-commerce industry sustainability. The service enables
customers to pick up their packages whenever it is convenient
for them, especially if they are unable to receive them at home.
PUDO is a central delivery and collecting system and its
utilisation is expected to increase the use of e-commerce and
the need for courier services in both markets. Sarawak needs
intervention to raise the national parcels per capita,
particularly for rural areas, according to the total parcel
volume for Quarter 1, 2022 (MCMC, 2022). The supply and
accessibility of PUDO services at PEDi across Sarawak have been
noted as a critical priority under this plan. The Malaysian
Communications and Multimedia Commission (MCMC) has developed
PEDi as a dynamic centre where it serves as an innovation-driven
centre and is critical in developing digital entrepreneurship
and empowering rural and suburban communities by providing
access to ICT facilities and training.
PUDO services
have gained popularity in the courier industry as a simple and
efficient approach to meet the needs of consumers in both urban
and rural areas. Globally, it has become a key trend in the last
mile logistic (Kawa, A., 2020). While PUDO services have been
effective in urban regions, their deployment and uptake in rural
and suburban areas, particularly in Sarawak, confront distinct
hurdles. With its wide land area and dispersed population,
Sarawak provides various obstacles for courier services
regarding timely and efficient delivery. By investigating the
factors that support and hinder the deployment of PUDO services
in PEDi centres in Sarawak, this study attempts to identify
solutions to Sarawak’s last-mile delivery difficulties. Apart
from that, while e-commerce has changed the way people shop, its
benefits are sometimes limited to urban regions with
well-established delivery networks. Residents in Sarawak’s rural
and suburban areas frequently face higher delivery charges with
minimal alternatives, making acquiring the products and services
available through e-commerce platforms difficult. This research
intends to improve e-commerce accessibility for residents of
Sarawak’s rural and suburban areas by analysing the deployment
of PUDO@PEDi services, thereby encouraging inclusive economic
growth.
The digital divide between urban and rural
areas is a global concern. This study aims to bridge the
urban-rural divide regarding access to e-commerce, logistics,
and courier services by researching the installation of PUDO
services in PEDi centres in rural and suburban areas of Sarawak.
The study’s findings can help close the gap by encouraging the
use of PUDO@PEDi services and offering a platform for increased
connection and economic prospects in rural and suburban regions.
Some of these centres need to be more utilised, which limits
their ability to serve as development catalysts. In rural and
suburban areas, underutilised PEDis represent an untapped
resource. By examining the potential of PUDO services in these
locations, this study examines strategies to maximise their use
and generate more value for the local community, with the
motivation to transform these centres into lively hubs that
provide a wide range of services, drawing more customers and
building a sustainable ecosystem that benefits the entire
community by incorporating courier services.
The
outcomes of this study can be used to assist PUDO service
providers and stakeholders in determining the most efficient
methods for delivering PUDO@PEDi services to support the Sarawak
Digital Economy project and in better understanding the needs
and preferences of customers in various geographic locations.
Apart from that, the findings of this study can aid in the
general improvement of courier services in Sarawak, hence
resulting in a more effective and efficient distribution of
goods and services, which would help the Sarawak Digital Economy
thrive.
The objectives of this paper are to:
RO1
Identify the factors contributing to the effective deployment
of PUDO services at PEDi centres located in Sarawak by courier
service providers.
RO2
Identify the factors hindering the effective deployment of
PUDO services at PEDi centres located in Sarawak by courier
service providers.
RO3
Identify and recommend suitable PEDi centres in Sarawak for
courier service providers to deploy PUDO services.
RO4
Provide recommendations for the courier service providers to
effectively deploy PUDO services at PEDi centres located in
Sarawak.
Conceptual Understanding
a. Theoretical Framework
The framework of this study was mainly constructed based on the
marketing theory created by E. Jerome McCarthy (1960), as cited
in Kotler, P., and Keller, K. L. (2016). The framework offers a
thorough approach to marketing by considering additional factors
crucial for successful marketing strategies, which consider the
7Ps components: product, price, place, promotion, people,
process, and physical evidence. The “Place” component of the 7Ps
concept is particularly pertinent for determining prospective
pick-up and drop-off places. The distribution and accessibility
of goods or services to clients are the main topics of this
component. In this situation, choosing appropriate pickup and
drop-off locations necessitates an awareness of the target
market’s geography, preferences, and convenience.
b. Factors Contributing To and Hindering the Effective
Deployment of PUDO Services
Several factors support the adoption of PUDO services in PEDi
for courier services. The main forces behind the introduction of
PUDO services, according to Ainin et al. (2018), are the
provision of a robust and dependable logistics network, better
accessibility to internet centres, and practical pick-up and
drop-off possibilities, which will enhance courier services’
overall effectiveness. Before implementing this service, the
service provider needs to analyse the consumer’s profile and
match the implementation techniques with the consumer’s
customised demands, as customer demand and increasing e-commerce
activities have also promoted the implementation of PUDO
services in internet centres. According to Chen et al. (2018),
location convenience, innovation, and people’s expectations of
the service positively impact their desire to utilise
self-service parcel delivery services.
Additionally,
customer perception of service quality impacts how effectively
PUDO services are deployed (Carrillat et al., 2007; Gulc, 2021).
The study also noted that evaluating company performance based
on customer-perceived service quality, where perceived quality
was defined as the degree to which the service delivered fits
the customer expectation, frequently impacts competitive
advantage. According to the relational model of courier service
quality in the B2C e-commerce sector (Gulc, 2021), a study
conducted in Poland highlighted the following factors that
ensure the effectiveness and quality of courier services.
i.
Quick and efficient order processing. ii. On-time
delivery. iii. Effective delivery. iv. Positive
customer relationships and experiences. v. Courier
company’s responsiveness to reported issues. vi.
Communication between courier company employees and clients. vii.
Easy contact with the courier company. viii. Lack of damage
to the shipment. ix. Choosing the form of sending or
delivery. x. Cultured and courteous behaviour of courier
company employees. xi. Flexibility in the choice or change
of date and place of service. xii. Compliance and
completeness of order.
Furthermore, the successful implementation of new services
depends on customers’ willingness to adopt them. According to
Al-Azzam and Siam (2014), service quality significantly impacts
customers’ adoption of new services, affecting their perceived
value. In a study by Baharom and Rahman (2017), service quality
was found to significantly impact customer satisfaction. The
study found that service quality greatly influences customers’
perceived value, affecting their satisfaction with the new
service. The customers’ satisfaction with the new service
positively influences their intention to adopt it (Baharom and
Rahman, 2017). Apart from that, Abdullah et al. (2018) claim
that the qualities of the service provider also influence client
acceptance of new services. The study discovered that customers’
adoption of new services is highly influenced by service
providers’ knowledge, reputation, and trustworthiness. The study
also found that consumers’ intentions to use new services are
highly influenced by how much they trust service providers.
Evidence and compatibility are identified to positively
associate with the adoption of innovation (Wisdom et al., 2014).
Hence the evidence of practice efficacy, compatibility with
practice norms, and adaptability to suit needs are essential in
introducing a new intervention to the community member. To
explore this in the implementation of pick-up and drop-off
service, it is necessary to gather information on views on the
service quality and its effectiveness.
Moreover, the
convenience of PUDO services has also been identified as a
significant factor in promoting the implementation of PUDO
services related to courier services. Customers can choose to
pick up their parcels at a convenient location and time, thus
saving time and effort (Tan et al., 2020). PUDO services have
been found to reduce delivery costs for courier companies (Omar
et al., 2020). This cost reduction can result in a more
competitive pricing strategy, increasing market share. According
to Alsharif, Mokhlis, and Aziz (2020), PUDO services can also
enhance the security of parcel delivery by reducing the risk of
parcel theft and damage during transit.
Despite the
benefits of PUDO services, several factors have been identified
in the literature as hindering the implementation of PUDO
services related to courier services deployed in Malaysia.
Firstly, inadequate infrastructure has been found to inhibit
PUDO implementation significantly (Tan et al., 2020). The lack
of proper facilities, such as adequate parking spaces, signage,
and safety measures at PUDO locations, can make it difficult for
customers to access the service. Secondly, Omar et al. (2020)
suggested that customer unawareness significantly hinders PUDO
implementation. Many customers need to be made aware of the
availability of PUDO services or how to use them. Lastly, the
need for more standardisation in PUDO services across courier
companies is also one of the hindrances to PUDO implementation
(Alsharif et al., 2020). The lack of standardisation can create
confusion among customers and reduce the efficiency of PUDO
services.
c. Identifying the Location for PUDO@PEDi Centres
In identifying the location for the deployment of PUDO at PEDi
centres in Sarawak, the contributing and hindering factors
should be considered. Apart from that, according to France by
Morganti, Banlanc, and Fortin (2014), the location of a PUDO
point can be identified by taking into account the
characterisation of pick-up points, such as the capacity to
reduce delays in deliveries and providing competitive prices and
make sure the service coverage was not only in urban areas but
also in less dense areas such as suburban and rural areas with
different delivery volumes.
From the perspective of
the courier service operator, an effective pick-up and drop-off
service can mitigate many issues related to traditional home
delivery, such as missing delivery, complex routing planning,
and traffic delivery (Zenezini et al., 2018). The location for
pick-up and drop-off sites can be decided through a two-stage
process; firstly, dividing the area into macro-zones based on
administrative criteria, and secondly, conducting zoning based
on catchment areas to estimate the potential flow of parcels
(Morganti et al., 2014). Other than that, information on
internet penetration should also be considered in identifying
suitable locations (Morganti et al., 2014).
03 methodology
This study combines qualitative and quantitative methods to
examine the use of pick-up and drop-off (PUDO) points by
consumers, store owners, and PEDi managers. The results of the
qualitative study were then used to develop a questionnaire for
PUDO@PEDi users. Both approaches were used to determine
appropriate actions or strategies to implement the
initiative.
Research Design
This research used a descriptive cross-sectional design with
both qualitative and quantitative approaches to gain a
comprehensive understanding of the topic under study and to
provide a more informed recommendation for practice. Based on
the responses and observations, an assessment was made using
scoring rubrics and an index score was calculated.
The
quantitative method is a user survey in which questionnaires
were given to PUDO@ PEDi users. In this case, the qualitative
data from the interviews and observations were analysed
thematically to identify patterns and themes. In contrast, the
quantitative data from the survey were analysed statistically to
identify correlations and associations between variables.
Finally, the qualitative and quantitative data can be integrated
to provide a more nuanced understanding of the research
question.
The research process of this study began
with identifying the research problem by reviewing the relevant
literature on the factors that influence the effective use of
PUDO@PEDi services, the challenges of using PUDO@PEDi services
and identifying PUDO@PEDi sites. The literature review focused
on two (2) types of information search, namely the theories and
concepts used in previous studies and the findings and
methodology used in the study. In developing the research
design, the purpose of the study, the nature of the study, the
unit and time frame of analysis, and the research design of
previous studies analysed in the literature review phase are
considered. Based on these considerations, a cross-sectional
study was conducted using interviews, observations, and surveys
to collect data from the selected individuals and the
community.
Research Instrument
There were three (3) instruments used in this research, namely
an interview questionnaire for the interview with PUDO@PEDi
staff, a PUDO user survey which was divided into seven (7)
sections, as outlined in Table 1, and a PEDi Suitability Index
Instrument. The information gathered in the interview with the
PUDO@PEDi staff was used to develop the PEDi Suitability Index
instrument that assesses the suitability of PEDi to deploy PUDO
service. The PUDO user survey instrument was adapted and
modified from similar studies conducted in Malaysia and other
countries. A few changes were made to the questionnaire items to
ensure the suitability of its content with the situation in the
local community and to answer the purposes of this study.
Table 1: Section in PUDO User Survey Instrument
Sampling
The sample for the user satisfaction survey was taken from the
four (4) PUDO@PEDi communities using purposive sampling. As for
the PUDO suitability study, all PEDis from four (4) out of 12
Sarawak divisions which are Kuching, Samarahan, Sri Aman, and
Betong, were approached. This research employed purposive
sampling in identifying regions in Sarawak to be studied and the
PUDO@ PEDi to be interviewed.
Data Collection
There were three (3) phases of data collection for this study.
In the first phase, four (4) PUDO@PEDi managers and service
providers were interviewed to gather information for PUDO
Suitability Index Instrument development and gather preliminary
information on the factors contributing to and hindering the
effective deployment of PUDO service at PEDi. After that, a
PUDO@PEDi suitability study was conducted on 58 PEDis in
Kuching, Samarahan, Sri Aman, and Betong to assess the
suitability of PEDi to deploy PUDO service. Finally, in the last
data collection phase, a PUDO user survey was conducted to
explore users’ satisfaction with the service and confirm the
service adoption factors in Sarawak. This survey was
participated by users from four (4) PUDO@PEDi in Sarawak.
04 findings and analysis
PUDO@PEDi User Survey: Factors contributing to the effective
deployment of PUDO services at PEDi centres located in Sarawak
by courier service providers
The participants of the PUDO@PEDi user survey consist of eight
(8) entrepreneurs (17.4 per cent) and 38 non-entrepreneur (82.6
per cent). In terms of age group distribution, 14 of the
participants are aged below 26 years old (30.4 per cent), 17 of
the participants are in an age group of 26 years old to 35 years
old (37 per cent), and 15 of the participants are older than 35
years old (32.6 per cent).
A Pearson Correlation test
was done to determine whether there are significant
relationships between the attributes with the user’s intention
to continue using the service or to encourage others to use the
service. The test results show statistically significant
associations between all attributes of the service adoption.
(See Table 2)
Table 2: Pearson correlation test results
The results show that all constructs significantly affect PUDO
service adoption at PEDi centres with a highly positive
correlation. Therefore, to ensure the effectiveness of PUDO@PEDi
services, the service provider must provide these aspects to be
optimised. The findings suggest that the following elements can
help courier service providers operate pick-up-drop-off (PUDO)
services at PEDi locations in Sarawak:
i. Service reliability
It is important to build consumer confidence in the PUDO
service. Deliveries of goods must be made in a secure and safe
manner, and courier service providers must guarantee the
dependability of their PUDO services regarding pick-up and
delivery schedules.
ii. Response time of the PUDO to user inquiries and
service-related issues
The PUDO service provider is required to answer user inquiries
and address service-related issues in a timely manner. They must
have a dedicated customer care team that can respond quickly to
any issues or complaints with reference to PUDO services.
iii. Consumer assurance
The PUDO service provider needs to provide assurance to their
clients that their shipments are in capable hands. This is made
feasible by tracking tools and delivery confirmation alerts.
Additionally, the PUDO service provider must guarantee that the
products are delivered to the intended recipient, on time, and
at the proper location.
iv. Empathy for the customer
The PUDO service provider should be considerate of the
customer’s requirements and preferences. They should consider
the convenience and preferences of the consumer when offering
pick-up and delivery services. The PUDO service provider may,
for instance, offer consumers a flexible delivery window or
allow them to choose a delivery time that fits within their
schedule.
v. Confidence in the service
The PUDO service provider should be reliable, have a strong
reputation, and excellent client reviews. In order to cover
missing or damaged packages during delivery, the PUDO service
provider may also consider offering a warranty or insurance.
vi. Service accessibility
The PUDO service provider must offer an accessible service to
attract clients by ensuring that the service is worthwhile and
that the charges are fair. The PUDO service provider may
consider providing discounts or promotions to entice new
customers or retain existing ones.
PUDO@PEDi interview: Factors hindering the effective deployment
of PUDO services at PEDi centres located in Sarawak by courier
service providers
Numerous obstacles may arise in the successful implementation of
PUDO services by courier service providers at PEDi centres in
Sarawak. Based on the PUDO@PEDi Manager’s interview, comments
from the courier service providers and literature reviews, the
difficulties include:
i. Lack of community awareness and comprehension of the service
The community’s lack of knowledge and comprehension of the
service is one of the primary obstacles that could obstruct the
proper deployment of PUDO services. People are less likely to
use a service if they are unaware of its existence or do not
comprehend how it operates. To promote the PUDO services and
inform the community about how it functions, courier service
providers must therefore make a significant financial investment
in marketing and educational initiatives.
ii. Lack of digital entrepreneurship
The efficient implementation of PUDO services may be hampered by
a lack of digital entrepreneurship in the local area. Digital
entrepreneurship refers to the process of developing, launching,
and expanding new businesses or services using digital
technologies. The adoption of PUDO services could be delayed,
and the service might not be able to live up to its full
potential without a robust digital entrepreneurial culture.
iii. Competitors in the neighbourhood
The availability of competitors in the neighbourhood may affect
how well PUDO services work. It could be challenging for a new
service provider to achieve market share if there are already
well-established courier service companies in the area. In this
situation, the new provider may need to offer a distinctive
value proposition in order to stand out from the competition.
iv. Limited service that does not meet community needs
The effectiveness of PUDO services may be hampered if they are
too narrow in scope or do not meet community needs. Providers of
courier services must be aware of the community’s unique demands
in order to customise their PUDO offerings.
v. Staff motivation (workload, work procedure, incentive)
The efficacy of the service also depends on the motivation of
the staff working at PUDO centres. Staff members’ motivation may
be impacted by an excessive workload or difficult work
procedures, which will ultimately impair the level of service
they deliver. Therefore, courier service providers must offer
sufficient training, assistance, and rewards to maintain
employee motivation.
vi. Equipment and facilities
The effective deployment of PUDO services depends on the
availability of suitable facilities and equipment. The level of
service offered to consumers may suffer if the PUDO centre is
under equipped or does not have appropriate amenities. In order
to offer consumers high-quality services, courier service
providers must make sure that their PUDO facilities are
maintained and furnished with the appropriate tools.
vii. Delivery area
Sarawak is distinguished by its dispersed areas and difficult
road conditions, which pose substantial challenges to the
effective and timely transportation of goods. Due to the
region’s dispersed character, there are large distances to cross
between different areas, making it difficult for courier
services to reach every corner of Sarawak. Furthermore, adverse
road conditions, such as rugged terrain, small routes, and
insufficient infrastructure, impede the smooth flow of parcel
delivery. These factors contribute to courier service delays and
constraints in Sarawak. Due to these geographical limitations,
delivery firms may struggle to provide complete coverage and
timely deliveries across the entire region. As a result,
consumers in remote or inaccessible places may have constraints
in the availability and speed of courier services.
PUDO@PEDi Suitability Index: Suitable PEDi centres in Sarawak
for courier service providers to deploy PUDO services
Based on the findings from the interview and literature review,
the study found out that for a PEDI centre to operate a PUDO
service, the factors that should be taken into consideration
are; adequacy of human resources, business space availability
and condition, storage availability and condition, security
system, occurrences of vandalism, marketing approaches, number
of PEDi users, number of residents in the community, number of
entrepreneurs and digital entrepreneurs, availability of other
courier services or PUDO points in the community, the distance
of the nearest courier service, internet service,
telecommunication network, availability of local products,
accessibility to the PEDi location, and staff’s willingness to
operate PUDO.
Besides that, factors listed, product, place, promotion, and
people are among the components of effective marketing
strategies, according to Kotler, P., and Keller, K. L. (2016).
Choosing appropriate locations requires considering elements
like customer convenience, closeness to target customers,
accessibility, and the reach of the distribution network. The
objective is to choose locations that maximise operational
effectiveness for the service provider while making it simple
for customers to get to them. Hence, considering these factors,
the suitable PUDO@PEDi location can be identified objectively
based on the evaluation.
An index instrument was developed to generate the PUDO@PEDi
Suitability index score that determines the readiness of the
PEDi to deploy PUDO services. The results are presented by the
PUDO suitability index and construct acceptability index
described in Table 3 and Table 4.
Table 3: PUDO Suitability Index (PSI) Indicator
Table 4: Construct Acceptability Index (CAI)* Indicator
*Construct Acceptability Index consists of Business Space
(BS), Security (S), Prospective Users (PU), Competition (C),
Facilities (F), Local Product (LP), Accessibility(A),
Readiness (R).
PEDis are classified into four (4) categories (Highly
Recommended, Recommended, Less Recommended, and Inadvisable)
based on their suitability for PUDO services deployment. This
suitability is measured by considering eight (8)
enabling/hindering factors: Business Space (BS), Security (S),
Prospective Users (PU), Competition (C), Facilities (F), Local
Product (LP), Accessibility (A), and Readiness (R). Results are
presented in the following tables.
Table 5: Highly Recommended PEDi to deploy PUDO service
Table 6: Recommended PEDi to deploy PUDO service
Table 7: Less Recommended PEDi to deploy PUDO service
Table 8: Inadvisable PEDi to deploy PUDO service
Based on the initial results, seven (7) PEDis are recommended to
deploy the service with an overall PUDO suitability index score
above 70.
Based on the scores, an assessment was
conducted on three (3) critical criteria which are local
product, competition, and prospective users for PEDis that fall
under the ‘less recommended PEDi’ group to determine if there
are more centres suitable for the deployment of the PUDO
service. The cut-off value for the Critical Criteria is based on
the 50th percentile. Values more than 59 are considered “Above
Average”. The results show that 12 out of 27 PEDis can be
considered for the deployment of the service, as follows:
Table 9: Recommended PEDi based on critical criteria score
*CCS: Critical Criteria Score; LP: Local Product; C:
Competition; PU: Prospective User
Therefore, the final recommendation list (in descending
recommendation order) is as follows;
1. Kampung
Gedong 2. Kampung Hilir Maludam 3. Kpg Darul Belimbing
Islam 4. Sibuluh 5. Kampung Tanah Hitam, Sematan 6.
Kampung Niup Pekan Samarahan 7. Tebedu 8. Bogag 9.
Kg Sampadi 10. Kg Pandan 11. Skio 12. Lubok
Antu 13. Serasot 14. Quop 15. Krokong 16. Kg
Braang Bayur 17. Batang Maro 18. Batu Lintang 19.
Kg Tgh Tebelu
In summary, the index instrument has
indicated that 19/58 (32.8 per cent) PEDis are ready for the
immediate deployment of PUDO service, 15/58 (25.9 per cent)
PEDis will need some improvement before deploying the service,
and 24/58 (41.4 per cent) PEDis are not ready to deploy the
service at the moment, mainly due to no or lack of local
product, lack of prospective users and the availability of
another courier service nearby the centre.
Recommendations for the courier service providers to effectively
deploy PUDO services at PEDi centres located in Sarawak
The findings of the study led to several recommended strategies
for the courier service providers to effectively deploy PUDO
services at PEDi centres, which include operational efficiency,
customer acquisition, and staff development and motivation, as
summarised in Table 10.
Table 10: Strategies for effective deployment of PUDO service at
PEDi centres located in Sarawak
05 conclusion and implications of the study
The effective deployment of PUDO services at PEDi centres in
Sarawak is highly affected by the reliability of the services,
responsiveness of the PUDO on user inquiries and issues related
to the service, the assurance given to the consumer, empathy to
the consumer, user trust on the service, and the affordability
of the service. This study confirmed the previous findings on
the effect of service quality on the effective deployment of
courier service (Abdullah et al., 2018; Carrillat et al., 2007;
Gulc, 2021). It also supported the study by Baharom and Rahman
(2017), who found that service quality has a significant impact
on customer satisfaction, hence increasing the intention of the
user to continue using the service or encourage others to use
the service.
The successful implementation of PUDO
services by courier service providers at PEDi centres in Sarawak
may encounter several challenges, which include a lack of
community awareness and comprehension of the service, lack of
digital entrepreneurship, competitors, the limited scope of PUDO
services, staff demotivation, and equipment and facilities. The
findings are supported by the previous study that found that
inadequate infrastructure (Tan et al., 2020) and customer
unawareness about the service Omar et al. (2020) are significant
hindrances to PUDO implementation.
This study
suggested that product, place, price, people, potential flow of
parcels, and internet penetration are crucial in identifying the
location of PUDO points. Besides that, the information gathered
in the interview with relevant stakeholders, such as PUDO@PEDi
managers and courier service providers, was also considered. A
discussion with a panel consisting of experts in the relevant
field concluded that by order of importance, local product,
competition and prospective users are the critical factors, and
readiness, facilities, business space, accessibility, and
security are the other aspects to be considered in the
evaluation. The deliberation by the expert panel ensures that
the results generated from the PUDO@PEDi suitability index are
valid and concise. The application of this index has identified
19 PEDis in Sarawak’s southern region with a score of PUDO@PEDi
suitability index above 70 per cent suggested to be ready to
deploy PUDO services.
Based on the findings, the
study suggests several recommendations for optimising the
identified factors, resulting in an efficiently deployed PUDO
service at PEDi facilities in Sarawak. The recommendations are
divided into three (3) categories: operational efficiency,
client acquisition, and employee development and motivation. To
improve operational efficiency, the service provider should
develop standardised standard operating procedures (SOP) and
policies for the courier services offered by PUDO. This will
boost customer satisfaction by ensuring consistency in service
delivery and reducing errors and delays. Furthermore,
introducing resource sharing across courier services can
effectively reduce costs, increase productivity, and widen
service areas. For example, sharing workers, warehouse space,
and cars can improve the sector’s overall efficiency and
competitiveness. The service provider should also ensure that
the PUDO system and equipment are up-to-date and functioning
properly. Regular maintenance and remote system monitoring can
help avoid service interruptions, increase customer loyalty, and
enable quick response in the event of an issue. Aside from that,
the integration of the PUDO system can give clients a consistent
experience. A centralised platform that provides tracking
information and delivery status for numerous courier services
can help to streamline operations, increase effectiveness, and
improve customer happiness.
In terms of client
acquisition, the service provider should deploy PUDO services in
communities with a high potential for digital entrepreneurs and
internet penetration. This will cater to digital entrepreneurs’
needs and improve last-mile delivery’s effectiveness. Besides
that, broadening the scope of services offered to include both
inbound and outgoing deliveries is also one of the significant
considerations to be taken by the service provider. This
flexibility attracts more customers and expands revenue streams
for PUDO providers. The service provider can also offer enticing
promotions to customers and collaborate with nearby businesses
to expand the customer base. Promotional activities and
partnerships with local businesses can increase customer
satisfaction, loyalty, and overall adoption of PUDO services.
The staff operating the PUDO@PEDi service should raise awareness
of the PUDO service among the community through various means
such as social media, word of mouth, and advertisements.
Increased awareness will encourage more people to use the
service and contribute to its success. Hence, there is a need
for a robust marketing strategy that targets the intended
audience and emphasises the benefits of PUDO services. A
well-executed marketing strategy can increase brand awareness,
attract new customers, and retain existing ones.
Staff
motivation and development are also crucial in ensuring the
effective deployment of PUDO at PEDi centres. To boost staff
motivation, the service provider could examine the workload of
their staff and provide a competitive reward system. This could
inspire the staff and boost their productivity. Other than that,
the management should invest in training and development
programmes aiming to enhance staff competency for the digital
age, increase their knowledge and awareness of the digital
economy, and educate them on how to use the PUDO service. This
will provide them with the skills they need to promote service
and digital entrepreneurship and foster the growth of additional
digital entrepreneurs in the neighbourhood.
Lastly,
it is recommended to collaborate with local stakeholders to
resolve challenges such as a need for more resources or
infrastructure in PEDi centres. This will help to leverage local
knowledge and resources to overcome these challenges and ensure
the sustainability of PUDO services in Sarawak.
06 recommendations for future research
Further research extending the study to other divisions of
Sarawak should be conducted to identify potential areas or
communities for digital entrepreneurship and e-commerce growth.
This will help determine if other PEDi centres in the rest of
the regions have a high potential for growth and to what extent
PUDO services can support the Sarawak Digital Economy. Secondly,
future research should consider incorporating community needs
assessment in the PUDO suitability assessment for the service.
This will help to tailor the PUDO services to the specific needs
and preferences of consumers in different regions, thus
increasing their effectiveness and adoption.
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In Memory of
Professor Dr Shahren Ahmad Zaidi Adruce
who passed away on 21 June 2024.
Professor Dr. Shahren was the Vice Chancellor of i-CATS
University College and had a PhD in Information Science and
Technology from Syracuse University, New York. In terms of
research, Professor Dr. Shahren secured several research
grants which were widely published and won the highest award
for impact factor publications for the social sciences during
his tenure at Universiti Malaysia Sarawak.
up next:
5G Digitalisation Benchmarking for Smart Industries in
Malaysia
by Dr. Azizul Azizan, Dr. Sya Azmeela
Shariff, Assoc. Prof. Dr. Abd. Rahman Abdul Rahim
and Dr. Suriani Mohd
