Track: Supply Chain Management

Abstract

Transportation modes, as part of the freight distribution system, have a vital role in the sending of parcels from consignor to consignee. In Indonesia, transportation activities between cities or provinces are dominated by trucks which cause road damage and congestion; this has implications in terms of the freight distribution bottlenecks. By contrast, trains have greater capacity, time delivery certainty, and cost-efficiency. However, trains only cover the freight distribution from station to station, which necessitates the double handling process; this means that the consignors-consignees must place and pick up the parcels at the train station. The lack of connectivity causes logistics service providers (LSPs) and consumers to choose trucks for freight distribution. Thus, this study proposes the framework of integrated freight distribution systems using a case study approach. This study highlights technology as a tool for integrating freight distribution services for all stakeholders, including the train company, retailers, and LSPs. Process synchronization and information sharing among stakeholders must be encouraged to produce seamless distribution performance.