Abstract Ari Wijaya Prof Syamsir Abduh

ABSTRACT

WIJAYA, ARI, University of Trisakti, March 2009, “The Analysis of Determining of Consumer Goods Distribution Center on Logistic Performance in Indonesia”. Major Advisor : Prof. Dr. Ir. Syamsir Abduh

Highly competitive global situations drive all company to strive having competitive advantages in order to survive within these circumstances. Logistic leverages which applied by the company will create the one of these competitive advantages. Logistic management application has to make added-value to the goods and/or services. Ballou described 3 strategies to achieve best customer goals named as triangle logistics strategy : (1) inventory strategy, (2) transportation strategy and (3) location strategy. Strategic planning has to be in-line with other company strategy. How to select the distribution center location and its numbers, take the important roles. Many studies are published that giving the logistics performance in many angles. The main activities on distribution are freight-in and freight-out activity. In order to be focus, in this research, freight-out activity was as a main study. Two fast moving consumer goods companies were studied and asked to submit the data. Secondary data and also some calculations based on the order data were as a based of the further data analysis. This research indicated that : (1) freight-out cost, (2) freight-out lead time and (3) inventory level, impacted to determine the distribution center location. Also, indicate that determining the best location of the distribution center will improve the logistic performances : (1) to save the freight-out cost at least by 15%, (2) to reduce the lead-time by 25.4% and (3) to reduce the inventory level by 9.7%.