OPTIMIZING DELIVERY STRATEGY TO REDUCE TRANSPORTATION COST: CASE STUDY OF PT RUBBER INTERNATIONAL

• Main Author: Sandy Sembiring, Leonard
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/49192
• Institution: Institut Teknologi Bandung

As the second-largest rubber producer, Indonesia supplies a substantial amount of rubber to the global market. PT RUBBER INTERNATIONAL is a world class corporation and the leading group of natural rubber processors in Indonesia. With a total annual capacity of 720,000 metric tonnes per year, the company produces technically specified rubber of the type SIR-10, SIR-20, and SIR-20 CV. Similar to most other companies, transportation cost is one of the highest operational cost components that burden the company. PT RUBBER INTERNATIONAL spends IDR 93,36 Billions in total, from January to December 2019 in transportation cost, it represents approximately 8% of total operational cost in the company. In many industries, logistics costs represent such a significant proportion of total costs that it is possible to make major cost reductions through fundamentally re-engineering logistics processes. PT RUBBER INTERNATIONAL currently delivers their finished goods via six ports of loading, Belawan Port has the highest delivery volume by 30,04% compared to other ports. In terms of transportation costs, all processors that ship its products via Belawan Port generate the highest total transportation cost and average transportation rate by kg/km. Belawan Port also have the highest transportation cost ratio compared to other ports. This research use qualitative method approach with triangulation used as data collection technique which refers to the application and combination of several research methods in the study of the same phenomenon. By combining multiple methods; interviews with related party in the company and internal company data analysis, researchers hope to overcome the intrinsic biases and the problems that come from single method studies. This research focused on optimizing delivery strategy specifically to Belawan Port, by using Global Logistics Management Process method, this research will define current transportation process, propose potential optimizations, implement the optimization plans through related organization entity within the company, and monitor the progress continuously. With this proposed strategy it is expected that the total transportation costs at PT RUBBER INTERNATIONAL can be reduced so that the profits obtained by the company can be maximized.