Logistic &

Distribution
Firdauf Achmad Dhewata, ST, MT
 Supply Flow vs Information Flow
LOGISTIC & DISTRIBUTION
Operations Sales
Supply Flow

FG Inventory
Channel
Raw Material Finish Goods Distribution Cost

Modern Trade
Supplier Factory Distribution Sales Depo Sales

Inbound Distribution
Wholesaler
Supply Chain Customer

Information Flow
Regular Review
Retailer

Output Produksi

Material Order PPIC Delivery Order Inventory Policy Sales Order Product Profile
Road to Consumer
PRINCIPAL/MANUFACTURER

Exclusive Registered
Agents Wholesale
5-10% 70-80%
Registered Modern Online
Retail Trade
Unregistered 5% 8%-10% <2%
Wholesale

Unregistered
Retail

CONSUMER
3
 Distribution Channels

Distribute to
wholesalers, retailers
and independent MT
14,838
Total registered
TRADIN
Wholesale as per
G end of 2015

Wholesalers usually
trade their goods

Wholesale Supply from Principal

and other
with other
wholesalers to 70-80%
Volume contribution
ensure capital
Wholesalers turnovers.
This process develop
“market price”

4 Different clusters in Wholesale

segmentation

4
 Distribution Channels

372,187
Total registered
Distribute to
retailer by as of
consumer
2015

Retail
5%
Volume contribution
Supply mainly from
Wholesalers

2.4 2
Mio
Estimation total
retailers across
Indonesia.
Different clusters in
Retail segmentation

5
 Distribution Channels
Estimation MT in

29,197 Indonesia, 85% is

categorized as Key Account
stores
Connect to direct
86% of Key Account
stores dominated by
consumer
account Indomaret and
Alfamart

Modern
23,738 8-10%
Total registered MT
Trade Supply mainly from
Principal
(including
HORECADI)
Volume contribution
as per 2015
as per 2015

Because of its premium

images, MT stores often
targeted as a perfect spot
for visibility.

6
 Distribution Channels

40%
of
Indonesia
area are
currently
Distribute products to covered by
Wholesalers and EZD
Retailers (mostly
(in their exclusive rural)
Exclusive area)

Agents 5-10%
Volume contribution
Supply mainly from as of 2015
Principal

7
 Why do we need Exclusive Agents?

Tanjung Pinang
Sorong

1. Difficult access to rural areas

2. Security issue Maumere
3. Resources

8
 Challenges in Distribution
Manage High Distribution Government Zoning Regulation
Cost

Logistic
20% Bukittinggi
Bukittinggi

Pontianak
Pontianak
Samarinda
Samarinda
Bengkulu
Bengkulu
Sales
Lampung
80% Lampung Bone
Bone
Jakarta
Jakarta Gresik
Gresik
Semarang
Semarang

Kupang
Kupang

Resource Efficiency
Annual Land price increase Strategic Location vs Zoning Permit
WHS A WHS B

Mon Tue Wed Thu Fri Mon Tue Wed Thu

Actual
Fri
30% Office Warehouse
Normal

PERMI
Colliers Market research 2015 for Jakarta
Property Prices
T
DENIE
Step 1 : Data Gathering
Profile Central Java – Wholesaler
Volume 21
Mio/week
Wholesaler
Retail

1
2
Pati
4
Tegal
Pekalongan
10 mio/wk
Tuban 6%
16 mio/wk Of National Sales
6 mio/wk 5 mio/wk
Semarang
22 mio/wk

13
Sales Office/DPC
Salatiga
Purwokerto 7 mio/wk
11 Mio/wk Magelang
7 mio/wk Solo
5
13 mio/wk Expired in 2018
Madiun
Cilacap
Yogyakarta 8 mio/wk
8 Mio/wk
22 mio/wk
Kediri
9 mio/wk
3159
Active Wholesaler

35 Mio/week
92 24% CJV
Potential FTO
Volume

Challenge : Customer Geographical Spread & Non Cash Readiness

 Pre Order Wholesaler Clustering

Serang
Sunter

Kedoya
Tangerang
Pulogadung
Cikupa

Bekasi
Karawang

Ciracas
Karawang DC

Clustering & Hub mapping Depok

Volume concentrate Center of Gravity

A method that seeks
computation geographic
Customer D Customer A coordinates for potential single Bogor
new facility that will optimize
delivery.

Parameter Input
Customer location, volume, 11 to 7 Warehouses
Customer C
Customer B
distance
Pre Order Wholesaler
Other Consideration
Accessibility, Traffic, Zoning
 Center of Gravity for
Geographical
Online Center of Gravity Tool Midpoint
 SOLO SALATIGA SOLO

581

406
96%
KEDIRI PEKALONGAN YOGYAKARTA
526

212
85%
PURWOK... SEMARANG KEDIRI
500

188
79%
MAGELANG CILACAP PURWOK...
426

178
78%

PATI YOGYAKARTA PATI

412

145
77%

TEGAL MADIUN TEGAL

401

127
74%

YOGYAKARTA TEGAL MADIUN

390

123
68%

TUBAN PATI MAGELANG

376

109
65%
Warehouse Utilization (%)
Warehouse Space (SQM)

MADIUN KEDIRI SEMARANG

315

102
58%

Underutilize Warehouse (sqm)

Warehouse Utilization

SEMARANG PURWOK... PEKALONGAN

67
312

56%

CILACAP TUBAN SALATIGA

50
271

55%

PEKALONGAN MAGELANG TUBAN

47
242

53%

SALATIGA SOLO CILACAP

10
228

30%
Avg : 56%

Avg : 136 sqm

Avg : 383 sqm
 Opportunity – Vehicle Utilization WEE Vehicles
Weekly
Weekly Daily Capacity
Sales Point Truck 4 Truck 6 Capacity Utilization
Volume (1 trip)
Wheel Wheel (5 Trip)

Sales DPC WE Cilacap 6,480,113   3 4,500,000 22,500,000 29%

Sales DPC WE Pekalongan 5,032,751 1 2 4,100,000 20,500,000 25%
Sales Office WE Kediri 8,389,593 4 3 8,900,000 44,500,000 19%
Sales Office WE Pati 8,518,844 2 2 5,200,000 26,000,000 34%
Sales Office WE Purwokerto 9,998,869 2 5 9,700,000 48,500,000 21%
Sales Office WE Semarang 17,651,500 7 3 12,200,000 61,000,000 30%
Sales Office WE Surakarta 12,191,693 3 4 9,300,000 46,500,000 27%
Sales Office WE Tegal 14,076,701   5 7,500,000 37,500,000 39%
Sales Office WE Yogyakarta 17,221,656 12 2 16,200,000 81,000,000 22%
Satellite WE Madiun 7,133,614 5 2 8,500,000 42,500,000 17%
Satellite WE Magelang 5,638,796 4 1 5,900,000 29,500,000 19%
Satellite WE Salatiga 6,689,956 3 2 6,300,000 31,500,000 22%
Satellite WE Tuban 4,924,240   4 6,000,000 30,000,000 17%
Grand Total 123,948,326 43 38 104,300,000 521,500,000 24%

Rental
Vehicle Capacity (Cigs) Cost/Month
L 300 600,000 4,480,000
TRUCK 4 RODA 1,100,000 4,796,000
TRUCK 6 RODA 1,500,000 6,780,000
Step 2 : Kaizen Event
Kaizen Event

Background & current Process Sharing Idea Generation

Focus Group Discussion Panel Discussion Closing

Kaizen : Panel Discussion Result
FTO WS Central Java

Expire Apr’18 Expire Mar’18

Expire Aug’18

Expire May’18

Expire Jun’18
Opportunity : Kediri - Madiun
390 sqm 50 km
85 km
74% 80 minutes
150 minutes

40 km
500 sqm 60 minutes
35 km 58%
50 minutes

65 km 40 km
130 minutes 60 minutes

35 km
60 minutes

100 km
160 minutes
Opportunity : Kediri - Mojokerto
581 sqm
48%

85 km
150 minutes 80 km
Normal : 120 minutes
Tol Est : 90 Minutes
390 sqm
74%

475 sqm
75%
500 sqm
58%

110 km
190 minutes
 Daily Volume Load
Sales Point Jenis Kendaraan
NoPolisi Mon Tue Wed Thu Fri Avg
Sales Office WE Yogyakarta RODA 4 AB 8054 EU 5% 25% 9% 5% 35% 16%
AB 8571 U
AB 8671 CU
7%
19%
9%
0%
26%
0%
7%
0%
13%
0%
12%
4%
• Yogyakarta may potentially reduce 1
AB 8693 CU
AB 8757 CU
16%
6%
58%
24%
7%
0%
46%
9%
39%
18%
33%
12%
trucks
AB 8758 CU
AB 8761 CU
6%
58%
20%
32%
21%
11%
76%
39%
26%
23%
30%
33%
• Daily Volume unbalance
AB 8832 AU 17% 5% 7% 12% 24% 13%
AB 9198 JN 6% 9% 354% 16% 1% 77%
H 1370 NW 18% 9% 18% 21% 50% 23%
H1370NW 5% 0% 23% 1% 6% 7%
N 9498 AT 16% 7% 16% 0% 24% 13%
RODA 6 AB 8693 CU 0% 4% 37% 10% 5% 11%
AB 9212 JN 37% 13% 4% 25% 32% 22%
Sales Office WE Yogyakarta Total 16% 15% 37% 19% 21% 22%
Satellite WE Madiun RODA 4 L 9334 D 20% 31% 23% 8% 45% 25%
L 9627 GG 7% 1% 1% 0% 0% 2%
L 9673 GE 22% 7% 23% 10% 13% 15%
L 9773 K 12% 8% 8% 0% 30% 12%
L 9775 K 30% 8% 22% 10% 22% 18%
RODA 6 L 9664 L 37% 4% 9% 31% 42% 25%
L 9964 GE 16% 19% 5% 8% 50% 19%
Satellite WE Madiun Total 21% 11% 12% 11% 30% 17% Madiun may potentially reduce 1 truck
Satellite WE Magelang RODA 4 AB 8264 CU 88% 13% 24% 5% 10% 28%
AB 8685 CU 36% 4% 8% 6% 66% 24%
AB 8691 CU 9% 13% 15% 13% 14% 13%
H 1418 PW 23% 8% 42% 8% 16% 19%
RODA 6 AB 8507 U 24% 27% 6% 9% 7% 15%
Satellite WE Magelang Total 35% 14% 18% 8% 22% 19%
Satellite WE Salatiga RODA 4 AB8569U 17% 10% 31% 21% 30% 22%
H 1673 KQ
H1694PQ
56%
14%
27%
22%
15%
15%
17%
9%
21%
6%
27%
13% Magelang need 1 truck only for Monday or
RODA 6 AD 1546 SB
AD 1547 SB
93%
30%
10%
8%
20%
9%
24%
13%
9%
10%
31%
14%
may synergy with Yogyakarta
Satellite WE Salatiga Total 45% 15% 18% 17% 15% 22%
Satellite WE Tuban RODA 6 L 9665 GE 23% 20% 16% 16% 15% 18%
L 9724 GF 21% 5% 16% 34% 6% 16%
L 9726 GE 20% 16% 8% 5% 10% 12%

Satellite WE Tuban Total

L 9871 GE 46%
27%
7%
12%
17%
14%
18%
18%
23%
13%
22%
17%
Salatiga need 1 truck only for Monday or
Grand Total 27% 23% 23% 26% 23% 24% may synergy with Surakarta

All Daily Tuban Volume is enough using

L300
FTO Challenges
• Cash Transaction
• Salesman Vehicles
• Out of Town Multiple Journey
• Permanent SA/Helper
• New Route/schedule
• Administration Impact
• Resources split
• Cost Impact
Step 3 : Testing
Survey

Bekasi – Visit Senin

Survey 13 July
 As Is Survey Result (October
2016)
WEE Arrives Sales Unloading & Depart to
in WHS Engagement Deliver FG Next WS

1st trip Avg : 38 Avg : 31 minutes Avg : 26 minutes

minutes • 7 min Pre- • 18 min unload
Engagement
• 8 min other
• Salesman Arrives 08:22 * • Scan Customer ID • 24 min Engagement activity
• BPPB & BPIB check • Engagement Activities • Unload FG
Avg : 17 minute
• Additional Load (adHoc) • Stock Count • Deliver to Wholesaler

• Vehicle Depart • Sales Order • Scan Marlboro Products

08:33
• Bad stock/Market return

Unloading Stock Check

Completed D-1 Loading
FG on Last WS

Avg : 21 minutes Avg : 20 minutes Avg : 36 minutes

Avg : 24 minute
• 8 min queue

• Seal & Park • 12 min unload

• Arrive in WHS 16:15 • Check Remaining
Loaded Trucks 16:57 • Load from Pre-Staging
FG vs Sales
• Complete DN • Return remaining FG to WHS
• Bad Stock/Market Return
 DSD to Pre Order
DSD Salesman Activity After Conversion to Preorder Result

General Activity
21% • On road
• lunch/break
-3
7 7 Logistics Related Activity
Reduce
Driver
Driver Salesman • Loading at Whs
46%
33% • Unload FG to WS
Performed
Performed byby
3 3
• Return FG to Whs
• Stock count ▼-6%
Delivery
Delivery Team
Team
(Logistics)
(Logistics) Driver Trucks -3
Reduce Trucks
6
Trucks
Sales Related Activity
59%
• Pre engagement
• Engagement Performed
Performed by
by
3 + Motorcycles 3
1 46% • Payment & others ▼-8% Salesman
3
Salesman Salesman Additional
Coverage
Grandmax Expansion

1 1 1 +36
Calls/day
Driver Salesman Grandmax

DSD
DSD conversion
conversion to
to preorder
preorder will
will improve
improve asset
asset utilization
utilization &
& increase
increase Salesman
Salesman Call
Call
 Salesman Area Coverage (Non
SRO)

05 Penjaringan
Penjaringan
04 02
06
Kalideres
Kalideres Cengkareng
Cengkareng
Tambora
Tambora 01
02

Grotam
03 Grotam

01 Kebon Jeruk 03 Kebon Jeruk

HMS HMS
Kembangan
Kembangan

BEFORE AFTER
Step 4 : Execution
Video SOLID