PRIV A TE SEC TO R PLA YERS:
LO G ISTIC S SO LUTIO NS FO R
EFFIC IENT SUPPLY C HA IN
M A NA G EM ENT IN INDO NESIA
By Je ffre y Ba ha r
To p ic
1
Lo g istic s Ma rke t a nd Pe rfo rm a nc e in
Indo ne sia
2
Indo ne sia : The Six Se c to rs o f Lo g istic s
LO G ISTIC S PERFO RM A NC E INDEX ( A SEA N)
2.76 3.44 3.29 3.14 2.96 4.09 2.94 3.49 3.43 3.02 3 4.133.08
3.59
3.53
[VA LUE].00
3.15
[VA LUE].00
Indo ne sia Ma la ysia Tha ila nd Philippine s Vie tna m Sing a po re
ASEAN LO G ISTIC S PERFO RMANC E INDEX
2010 2012 2014
So urc e :Wo rld Bank
Se c to rs (2014) Sc o re
C usto m s 2.87
Infra struc ture 2.92
Int. Ship m e nts 2.87
Lo g istic s
C o m pe te nc e 3.21
Tra c king & Tra c ing 3.11
Tim e line ss 3.53
Se c to rs (2014) Sc o re
C usto m s 3.37
Infra struc ture 3.56
Int. Ship m e nts 3.64
Lo g istic s
C o m pe te nc e 3.47
Tra c king & Tra c ing 3.58
Tim e line ss 3.92
Se c to rs (2014) Sc o re
C usto m s 3.21
Infra struc ture 3.40
Int. Ship m e nts 3.30
Lo g istic s
C o m pe te nc e 3.29
Tra c king & Tra c ing 3.45
Tim e line ss 3.96
Se c to rs (2014) Sc o re
C usto m s 3.00
Infra struc ture 2.60
Int. Ship m e nts 3.33
Lo g istic s
C o m pe te nc e 2.93
Tra c king & Tra c ing 3.00
Tim e line ss 3.07
Se c to rs (2014) Sc o re
C usto m s 2.81
Infra struc ture 3.11
Int. Ship m e nts 3.22
Lo g istic s
C o m pe te nc e 3.09
Tra c king & Tra c ing 3.19
Tim e line ss 3.49
Se c to rs (2014) Sc o re
C usto m s 4.01
Infra struc ture 4.28
Int. Ship m e nts 3.70
Lo g istic s
C o m pe te nc e 3.97
Tra c king & Tra c ing 3.90
4.93
7.04
9.24
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
2008
2012
2015
Value
(i
n USD Billions)
Year
M A RKET SIZE O F 3
RD
PA RTY LO G ISTIC S BUSINESS IN
INDO NESIA A ND THEIR BREA KDO W N BA SED O N
C USTO M ER SEC TO RS
2008- 2012 C AG R 9.3%
2012- 2015
C AG R 9.5%
39.5%
40.5%
0.5%
19.5%
Ma nufa c turing Re ta il E- C o m m e rc e O the r
38.5%
41.7%
1.1%
18.7%
Ma nufa c turing Re ta il E- C o m m e rc e O the r
Bre a kdo wn o f Ma rke t Size b y C usto m e r Se c to rs (2012 a nd 2015, Va lue )
So urc e : Sp ire ’s p rim ary inte rvie ws, FIC C I.
YEA R
2012
Re ta il
41.7%
USD 3.85 B
Ma nufa c turing
38.5%
USD 3.55 B
O the rs
18.7%
USD 1.73 B
E- C o m m e rc e
1.1%
USD 0.10 B
LO G ISTIC S SPENDING BA SED O N INDUSTRY SEC TO R A ND
THEIR BREA KDO W N BA SED O N THE A C TO RS ( 2 0 1 5 )
So urc e : Sp ire ’s Re se arc h and C o nsulting (2015)
[VALU
E],
60%
In-House
Outsourced
[VALU
E],
20%
In-House
Outsourced
[VALU
E],
30%
In-House
Outsourced
[VALU
E],
20%
So urc e : Maste r Plan fo r the Ac c e le ratio n and Exp ansio n o f Ec o no m ic De ve lo p m e nt o f Indo ne sia (MP3EI)
LPI: INFRA STRUC TURE - 6 INDO NESIA EC O NO M IC
C O RRIDO R
Se c to rs C usto m s Infra struc ture Int. Shipm e nts
Lo g istic s C o m pe te nc e
Tra c king & Tra c ing
Tim e line ss
C O M PA RISO N BETW EEN INDO NESIA EC O NO M IC C ENTER
IN LO G ISTIC PLA N A ND LO G ISTIC S DELIV ERY RO UTE O F
A N A UTO M O TIV E C O M PA NY
Ja ka rta & Ba nte n
Ba ndung
Se m a ra ng
Ea st Ja va Ba li
Ma ta ra m
Kupa ng A c e h
Me da n
Ba ta m
Ja m b i
Pa le m b a ng
La m pung Be ng kulu
Pa da ng
Po ntia na k
Pa la ng ka ra ya
Sa m a rinda
Ba nja rm a sin
Ma na do
G o ro nta lo
Pa lu
Ma m uju
Ma ka ssa r
Ke nda ri
A m b o n
Ja ya pura
Yo g ya ka rta Pe ka nb a ru
Pa ng ka l Pina ng
So titi
So ro ng Ma no kwa ri
Me ra uke
So urc e : Maste r Plan fo r the Ac c e le ratio n and Exp ansio n o f Ec o no m ic De ve lo p m e nt o f Indo ne sia (MP3EI), Sp ire Prim ary Re se arc h Me g a Ec o no m ic C e nte r / The c o m p any ’s he ad o ffic e
Ec o no m ic C e nte r / The c o m p any ’s b ranc h o ffic e
Dire c t de live ry fro m he ad o ffic e
So urc e : Lo g istic s Pe rfo rm anc e Inde x 2014
C o untry
Po rt o r Airpo rt Supply C ha in
La nd Supply C ha in
Dista nc e * (km )
Le a d Tim e (da ys)
C o st** (USD)
Dista nc e (km )
Le a d Tim e (da ys)
C o st** (USD)
Ind o ne sia 133 3 579 255 2 579
Ma la ysia 512 1 3,000 - -
-Tha ila nd 25 1 250 - 1 1,000
Philip p ine s - 2 572 - 2 1,000
Vie tna m 36 1 237 43 1 274
Sing a po re 30 2 323 - 2 909
Po rt o r Airpo rt Supply C ha in
La nd Supply C ha in
Dista nc e * (km )
Le a d Tim e (da ys)
C o st** (USD)
Dista nc e (km )
Le a d Tim e (da ys)
C o st** (USD)
94 4 568 189 5 1,233
512 1 3,000 - -
-- 1 500 - 1 2,000
- 2 630 - 2 1,000
- 1 281 - 1 354
- 2 266 - 2 783
LPI: INTERNA TIO NA L SHIPM ENTS
Se c to rs C usto m s Infra struc ture Int. Shipm e nts
Lo g istic s C o m pe te nc e
Tra c king & Tra c ing
Tim e line ss
Sc o re 2.87 2.92 2.87 3.21 3.11 3.53
Expo rt Tim e a nd C o st
Im po rt Tim e a nd C o st
*Re fe r to the distanc e indic ato r fo r p o rt and airp o rt
Se c to rs C usto m s Infra struc ture Int. Shipm e nts
Lo g istic s C o m pe te nc e
Tra c king & Tra c ing
Tim e line ss
Sc o re 2.87 2.92 2.87 3.21 3.11 3.53
70%
97%
83%
71%
76%
92%
IND O NESIA M A LA YSIA THA ILA ND PHILIPPINES V IETNA M SING A PO RE
SHIPM ENTS % M EETING Q UA LITY C RITERIA *
Ship m e nts % Me e ting Q ua lity C rite ria
LPI: LO G ISTIC S C O M PETENC E
So urc e : Lo g istic s Pe rfo rm anc e Inde x 2014
Se c to rs C usto m s Infra struc ture Int. Shipm e nts
Lo g istic s C o m pe te nc e
Tra c king & Tra c ing
Tim e line ss
Sc o re 2.87 2.92 2.87 3.21 3.11 3.53
LPI: TRA C E A ND TRA C KING
MET AND UNMET NEEDS
FROM INDONESIA LOGISTIC
C urre nt Me t Ne e ds
C urre nt Unm e t Ne e ds
Re c o m m e nde d Ac tio ns
G e ne ra l
G o o d wo rking re la tio nship s with 3PL p ro vid e rsExpe nsive inte r- isla nd shipping O ffe r disc o unts fo r la rg e r shipm e nt vo lum e s
Ma nufa c turing
3PL p ro vid e rs a re a b le to ha nd le do c um e nta tio n re q uire m e ntsfo r c usto m c le a ra nc e , im po rt/ e xpo rt we llUnc le a r a nd va rying p ric e ra te s im p o se d b y d iffe re nt 3PL p ro vid e rs
Ba d se rvic e q ua lity in te rm s o f d e la ys in sc he dule sa nd la c k o f
c o m m unic a tio n
Pro vide sim ple m a nua ls/ sc he dule s fo r
d e te rm ining p ric e s ra te s a nd a ve ra g e ind ustry b e nc hm a rk to fa c ilita te c o m pa riso n
Re a l- tim e de live ry tra c king se rvic e whe re a le rts will b e se nt via e m a il/ pho ne c a ll whe n the re is a d e la y
Re ta il
3Pl p ro vid e rs will b e a r c o st fo r d a m a g e d g o o d s3PL pro vide rs a re we ll- e q uippe d to ha nd le ne c e ssa ry p ro c e d ura l re q uire m e nts fo r im po rt a nd e xpo rt
De la ye d d e live ry sc he d ule s to re ta il sto re s due to slo w c usto m c le a ra nc e
Expe nsive to o utso urc e inve nto ry m a na g e m e nt
La c k o f p ro p e r c o ld - c ha in lo g istic s fa c ilitie s to ke e p g ro c e rie s fre sh Wa re ho using fa c ilitie s a re no t e q uippe d with la te st inve nto ry m a na g e m e nt syste m (IMS) te c hno lo g y
C ho o se lo c a l pa rtne r with g o o d c usto m s re la tio ns
A do pt U.S m o de l o f c ha rg ing inve nto ry m a na g e m e nt fe e b a se d o n to ta l vo lum e o f g o o d s d e live re d
Ensure tha t truc ks a re full- e q uippe d with fre e ze rs a nd o the r c o ld c ha in fa c ilitie s
Ensure tha t wa re ho using fa c ilitie s a re e q uippe d with la te st IMS
E- c o m m e rc e
G e o g ra p hic a l c o ve ra g e o f 3PL se rvic e p ro vid e rsDe la ye d ship p ing tim e s d ue to sub -c o ntra -c ting b y 3PL p ro vid e rs e ng a g e d
Da m a g e d va lua b le / fra g ile g o o d s d uring d e live ry
Minim ize d e la ys in d e live ry sc he d ule s b y m a inta ining o wn fle e t ra the r tha n sub -c o ntra -c ting
O ffe r spe c ia l pa c ka g ing se rvic e to m inim ize d a m a g e to fra g ile a nd va lua b le ite m s
Ensure g e o g ra phic a l c o ve ra g e to who le o f ID
Infra struc ture
Lo g istic s in Ind o ne sia is
he ld b a c k b y
the la c k o f
infra struc ture
. This situa tio n is, ho we ve r,c urre ntly b e ing im p ro ve d
b y the g o ve rnm e nt.
Lo g istic s C o m p e te nc e
Lo g istic s c o m pe te nc e is a lso a n issue he re , a s c urre ntly
se e n fro m the a m o unt o f
in- ho use lo g istic s a c tivity c o m pa re d to o utso urc e d
(70:30)
Tra c king a nd Tra c ing
Tra c king a nd tra c ing syste m a re a p p lie d to the lo g istic s ind ustry. So m e
im pro ve m e nt to
re a l- tim e b y use o f the
te c hno lo g y will m a ke it m o re e ffe c tive .Te l: (62- 21) 5794 5800
Fa x: (62- 21 5794 5808
Wism a 46 Ko ta BNI, 25th Flo o r, Unit 07 & 09
Ja la n Sudirm a n Ka v. 1, Ja ka rta 10220
INDO NESIA
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