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Value Analysis among the Parties on Imported Product in Indonesia Using Process Activity Mapping: Freight Forwarder, Distributor, and Retailer



Author(s)

Megita Ryanjani Tanuputri¹, Ravipim Chaveesuk² and Adi Djoko Guritno¹

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DOI:10.17265/2159-5828/2017.05.006

1. Department of Agro-industrial Technology, Universitas Gadjah Mada, Yogyakarta, Bulaksumur 55281, Indonesia
2. Department of Agro-Industrial Technology, Kasetsart University, Bangkok, Chatuchak 10900, Thailand

National logistics system in Indonesia can be categorized as inefficient logistics system due to current number of non-value added (NVA) activities. The unreliable National logistics system and the complexity of distribution system are the big obstacles. This study aims to analyze the value and to propose recommendation for further improvement of National distribution system for imported product. This study employed convenience sampling through in-depth interview to analyze the activity in freight forwarder (FF), distributor and retailer. To demonstrate and analyze the activity process in each party, Process Activity Mapping (PAM) was used as a tool. The study results showed that the delivery speed in Jakarta (8.4 min/km) is slower than that of Surabaya (6.6 min/km). The government support through creating adequate infrastructure, good bureaucracy system and good collaboration directly affects the activities of FF, distributor and retailer. Improving FF performance in a timely and reliable manner is required to reduce errors that may occur. Moreover, encouraging the practice of cold chain management is also necessary in distributing the product throughout Indonesia. The pull strategy can be chosen by retailer to eliminate storage activity. Meanwhile, the use of information technology (IT) system is essential to encourage better inventory management, database management and sharing information in distributor and retailer stage.

Value analysis, import, Indonesia logistics system, process activity mapping.