LOGISTICS MANAGEMENT IN PT FRISIAN FLAG INDONESIA: CASE OF SERVING INDOMARET

• Main Author: ARFANTO (NIM 29115358), ADITHIA
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/20744
• Institution: Institut Teknologi Bandung

Indomaret (and Alfamart) has been the main growth and revenue driver for modern market in Indonesia, <br /> <br /> <br /> <br /> <br /> <br /> <br /> with each account has around 13.000 stores around the nation, including for PT Frisian Flag Indonesia <br /> <br /> <br /> <br /> <br /> <br /> <br /> (FFI). With that wide of reach and distribution, one of the most important challenge on how to improve <br /> <br /> <br /> <br /> <br /> <br /> <br /> the service of delivery to Indomaret. The key is by looking for strategy that can allow FFI to respond <br /> <br /> <br /> <br /> <br /> <br /> <br /> quickly to changing requirements and demand to minimize stock outs and also find the right strategy to <br /> <br /> <br /> <br /> <br /> <br /> <br /> minimize return and damaged goods. Return and damaged goods management is the problem that this <br /> <br /> <br /> <br /> <br /> <br /> <br /> final assignment put emphasis on. <br /> <br /> <br /> <br /> <br /> <br /> <br /> The problem is signaled by higher return and damaged goods ratio compared to allowance given to <br /> <br /> <br /> <br /> <br /> <br /> <br /> Indomaret. For this problem, FFI need to identify all the possible causes to be able to find out the root <br /> <br /> <br /> <br /> <br /> <br /> <br /> causes which contribute to higher return and damaged goods ratio that leads to higher cost to spend, <br /> <br /> <br /> <br /> <br /> <br /> <br /> using qualitative research’ methodologies of interviews with respondents from FFI and Indomaret, and <br /> <br /> <br /> <br /> <br /> <br /> <br /> observations in YCH warehouse, Indomaret DC dan Indomaret stores. The result of this will be <br /> <br /> <br /> <br /> <br /> <br /> <br /> described in Ishikawa diagram to pinpoint the root cause(s). After that, FFI can focus on finding <br /> <br /> <br /> <br /> <br /> <br /> <br /> business solution to solve the problem. <br /> <br /> <br /> <br /> <br /> <br /> <br /> After that, this final assignment will also formulate business solution that can be implemented to solve <br /> <br /> <br /> <br /> <br /> <br /> <br /> the problem. From this root cause analysis, this final assignment will need to find business solution to <br /> <br /> <br /> <br /> <br /> <br /> <br /> solve problem causes by bad product handling and potential overstock due to inaccurate forecast. <br /> <br /> <br /> <br /> <br /> <br /> <br /> Following root cause analysis and developing solutions, this research has resulted in creating and <br /> <br /> <br /> <br /> <br /> <br /> <br /> developing palletized delivery to Indomaret and confirmed monthly order as business solutions. <br /> <br /> <br /> <br /> <br /> <br /> <br /> Palletized delivery will minimize manpower usage in unloading products, hence damaged goods can be <br /> <br /> <br /> <br /> <br /> <br /> <br /> minimized for around 70% from ratio 0.6% to 0.42%. Confirmed monthly order is basically method <br /> <br /> <br /> <br /> <br /> <br /> <br /> that pull all Purchase Order (PO) in advance (D – 2 months). By having the number and exact value of <br /> <br /> <br /> <br /> <br /> <br /> <br /> order, FFI can calculate the real demand and products needed by Indomaret and can prepare it very <br /> <br /> <br /> <br /> <br /> <br /> <br /> well. <br /> <br /> <br /> <br /> <br /> <br /> <br /> Implementation of these business solutions will be one step at a time, with each of solutions will come <br /> <br /> <br /> <br /> <br /> <br /> <br /> with different timeline and different pilot projects. These pilot projects will be monitored and reviewed <br /> <br /> <br /> <br /> <br /> <br /> <br /> for two until 3 months. If the results are proven to be successful and beneficial to FFI, solutions will be <br /> <br /> <br /> <br /> <br /> <br /> <br /> expanded to other regions or Distribution Centers until it covers nationwide.