PRODUCT VALUE OPTIMIZATION WITH SUPPLY CHAIN DESIGN TO IMPROVE DOMESTIC MARKET OBLIGATION & PREMIUM MARKET A CASE STUDY AT PT. BERAU COAL
Coal prices during the second quarter to the third quarter of 2020 were very worrying amidst the survival phase with low demand for coal in the market and this condition became important for PT. Berau Coal to be able to participate in coal procurement tenders, especially for direct customers wit...
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| Format: | Theses |
| Language: | Indonesia |
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| Online Access: | https://digilib.itb.ac.id/gdl/view/52917 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | Coal prices during the second quarter to the third quarter of 2020 were very worrying
amidst the survival phase with low demand for coal in the market and this condition
became important for PT. Berau Coal to be able to participate in coal procurement
tenders, especially for direct customers with long-term contracts. The absence of product
separation in binungan, especially block 8 on sodium parameters, becomes a problem
when there is demand in the market for competitive product quality, especially from the
premium market (FGH Power Plant) with long-term contracts and domestic markets
(KLM and OPQ Power Plant) as direct customers, so that it forces the fulfillment of
product quality to companies using products with high mining costs to accommodate
these needs. For this product separation activity to be done, regular discussions are held
with a team from binungan (Engineer, Planning, Geology & CPP) to collect data both
primary and secondary by conducting observations & interviews with competent
personnel in each supply chain regarding the impacts that arise when product separation
is carried out (from mine to jetty). From the problems that arise, several solutions can be
run in parallel, such as: consistently taking pit samples at the mine, products with low
sodium requirements are sent according to shipping schedules, increasing crusher
productivity by blending products from block 7 west & block 8 and reducing products
from Sambarata which has high mining costs. With the implementation of some of these
solutions, the projected 3-year mixing cost savings of $0.94/metric tons, projected
increase in revenue for the premium market of $2.75/metric tons, and the potential
reduction of $1.00/metric tons penalty from the inaccuracy of sales delivery to the
domestic market.
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