MODEL DEVELOPMENT OF COORDINATION IN HUB-AND-SPOKE OF EXPORT TRADE LOGISTICS BASED-ON MULTI-AGENT

• Main Author: ANIISAH SHOLIHAH NIM 33411005, SITA
• Format: Dissertations
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30979
• Institution: Institut Teknologi Bandung

In export trade logistics, there are two main activities: seaport activites on sea-side and hinterland activites on land-side. Hinterland activities start from contract between exporter/shipper and consignee abroad, until its container arrive in container yard of seaport on a specified due date. However, exporters have difficulties in fulfilling export contracts and closing time due-date in seaport, due to congestion on physical flow of goods and on processing the flow of information in the form of documents accompanying the physical flow. <br /> <br /> In physical flow of goods, congestion occurs both inside and outside seaport, where trucks dominate the use of roadways. For hinterland to be able to support the flow of goods from and to an international hub seaport, a spoke is needed as an extended gate of seaport (hub). A spoke also works as a place for consolidation and distribution of goods and as an intermodal connection from seaport, directly integrated with seaport as a hub. Thus, export goods to be delivered will come from several points of origin (warehouses/manufactures), be consolidated at a spoke, then flowed to the hub (concept of hub-and-spoke). <br /> <br /> In flow of information/documents, exchange of information/documents involves several actors i.e.: business entities and government agencies, where interdependent activities occurs between actors. If coordination among actors does not work well, it will affect the smoothness of export. Based on a survey of trade across nation conducted by World Bank (2013), the average export time in Indonesia is 17 days, in which document preparations process is 64,7% of export time. Idle time for containers waiting to be processed further shows low coordination among involved actors in planning and scheduling operations, ranging from drayage to line-haul operations. It indicates coordination problem in export trade. <br /> <br /> Coordination problems in export trade logistics are: discrepancy of schedule between readiness of goods and its documents, lengthy duration of issuing export documents (ie export declaration, COO, etc), lack of conformity between the arrival of empty container and the completion of goods in warehouse/factory, lack of conformity between the arrival schedule of container in Inland Container Terminal and train departure to seaport hub. The weaknesses of existing coordination system are: partial flow of information/documents or prerequisite and unidirectional <br /> <br /> interdependence, manual decision making, the mediator only acts as forwarder of schedule information, and in the case of processing export document, weakness lies in forwarder acting as coordinator but not having authority to make arrangements. <br /> <br /> Many studies have been conducted on coordination in hub-and-spoke hinterland chain. However, previous studies have assumed that documents of goods is ready. In reality, congestion occurs in the preparation of export documents. Coordination in previous studies is mostly sequential and partial, only deals with flow of goods (not including flow of information), and pays little attention to information sharing and interaction among actors. Thus, in order to reduce time to export goods, the research question is “how to undergo coordination among actors involved in handling physical flow of goods and flow of information (documents) when arranging goods to be exported so that it meets due-date (closing time)”. <br /> <br /> A holistic approach in developing coordination model was conducted in three stages. The first stage is the development of conceptual model on coordination among-actors in hub-and-spoke network, done by streamlining existing model. The basis for conceptual model development are existing model, benchmark on coordination in selected countries, and literature on coordination in interorganizational-system (IOS). The outputs of the first stage are four alternatives on conceptual coordination model. The second stage is the evaluation of alternative models by port logistics experts based on assessment of outcome, impact, and implementation. The output of the second stage is a coordination model that suits the real system (especially in Indonesia). The last stage is the development of simulation model based on the previously chosen model (output of 2nd stage) to validate its export performance. Novelty of this research lies in the development of an inter-organizational system (IOS) coordination model combining centralized and sequential interdependency on a hub-and-spoke typology which considers flow of goods and flow of information/documents with involving actors from business and government agencies in the process of exporting goods. Validation of this proposed model shows performance of export time at 4.8 days with 0.5 day standard deviation (95% level of confidence), a decrease in export time by 24.6% compared to existing model. Performance of document preparations, inspection and customs clearance, and inland transportation and handling are: 4.8 days, 0.1 day and 1.8 days respectively. Meanwhile, retardation is 0.08% with an average delay time of 4 hours. <br /> <br /> The research is subjected to some known limitations i.e.: this research has not put into consideration the different behavior of actors on possible vertical integration, how to resolute conflict, how to handle reciprocal scheduling, and risk analysis. These limitations can be further developed in future research.