Track: Logistics, Transport and Traffic Management

Abstract

Recently, various companies have chosen outsource logistics to provide logistics service for running efficient distribution systems, but there are problems occurred when the goods were not delivered on time that causes customer dissatisfaction. Re-design of business processes is necessary to improve the efficiency and effectiveness of the processes involved in logistics and distribution, in order to guarantee the product is delivered to consumers on time with minimal costs. This study aims to design the distribution process improvement in one of logistics service providers in Indonesia to increase the logistics performance of the company by streamlining the distribution process time of goods. Business Process Reengineering method is used in this study, by conducting observations and interviews with dairy companies and logistics service companies, then the current distribution process is modeled and simulated using Igrafx BPMN software. Improvement of the distribution process is designed to generate the most efficient strategy which is a simulation model with a strategy of rearranging orders on Warehouse Management System (WMS) and the application of Radio Frequency Identification (RFID), using more than one shipping vendor, and using information and tracking systems for distributors that achieve time efficiency  by 49,6%.