The Role of Logistics Service Providers in the Distribution Channel of Imported Perishable and Processed Food Product to Java Island, Indonesia

https://doi.org/10.22146/aij.v4i1.27395

Megita Ryanjani Tanuputri(1*), Ravipim Chaveesuk(2), Adi Djoko Guritno(3)

(1) Department of Agroindustrial Technology, Faculty of Agricultural Technology, Universitas Gadjah Mada, Indonesia
(2) Department of Agroindustrial Technology Management, Faculty of Agro-Industry, Kasetsart University, Thailand
(3) Department of Agroindustrial Technology, Faculty of Agricultural Technology, Universitas Gadjah Mada, Indonesia
(*) Corresponding Author

Abstract


Today fierce competition has highly enforced the company to focus more on their core competency and has encouraged them to strengthen competitive advantage. This condition reinforces the role of logistics service providers (LSP) to help company run their supporting activities. This research aims to identify the characteristics of LSP and to analyze their role in the distribution channel of imported perishable and processed food products in Indonesia. Convenience sampling was employed as sampling methodology and in-depth interview was used to collect detail information from respondents including private stakeholders, port authorities, freight forwarder association and retailers. The research results show that the characteristics and size of the company affects the involvement of LSP in the distribution channel. The roles of freight forwarders (FF) extensively include pre-customs clearance, customs clearance and post-customs clearance. Furthermore, the role of FF considerably contributes to the ease of arranging international shipment. The role of distributor plays vital role in the tracking and tracing system and timeliness of distribution channel. Meanwhile, the role of FF and transporter is fairly low in encouraging track-able and traceable distribution channel. Further improvements are needed to encourage better distribution channel performance.

Keywords


Distribution channel; Imported products; Logistics; Logistics service provider; Supply chain management

Full Text:

PDF


References

Bowersox, D.J., T.P. Stank, P.J. Daugherty. 1999. Lean Launch: Managing Product Introduction Risk Through Response - based Logistics. Journal of Product Innovation Management, 16(6):557–568.

Hsiao, H.I., R.G.M. Kemp, J.G.A.J. van der Vorst, S.W.F. (Onno) Omta. 2009. A Classification of Logistics Outsourcing Levels and Their Impact on Service Performance: Evidence from the Food
Processing Industry. International Journal of Production Economics, 124:75 - 86.

Kayakutlu, G., G. Buyukozkan. 2010. Asessing Performance Factor for a 3PL in a Value Chain. International Journal of Production Economics, 131: 441 – 452 .

Rajesh, S., S. Pugazhendhi, K. Ganesh, C. Muralidharan, R. Sathiamoorthy. 2010. Influence of 3PL Service Offerings on Client Performance in India. Transportation Research Part E, 47: 149 – 165.

Tanuputri, M.R., R. Chaveesuk, A.D. Guritno. 2016. Strategy Development of Importation Perishable Products using Business Process Analysis at Major Sea Port of Indonesia. The Proceedings of the Asian Business & Management Conference (pp. 35 –43). Kobe: IAFOR.

Tezuka, K. 2011. Rationale for Utilizing 3PL in Supply Chain Management: A Shippers’ Economic Perspective. IATSS Research. 35: 24-29.

The Organization for Economic Co-operation and Development. 2012. Regulatory and Competition Issues in Ports, Rail and Shipping in Indonesia. Jakarta: OECD Reviews of Regulatory Reform.

Wisner, J.D., K.C. Tan, G.K. Leong. 2009. Principles of Supply Chain Management: A Balanced Approach. USA: South - Western Cengage Learning.

Wong, Y.Y., Maher, T.E., Nicholson, J.D., Gurney, N.P. 2000. Strategic Alliances in Logistics Outsourcing. Asia Pacific Journal of Marketing and Logistics, 12(4): 3–21.

World Bank. 2016. Connecting to Compete: Trade Logistics in the Global Economy. Washington DC: World Bank.



DOI: https://doi.org/10.22146/aij.v4i1.27395

Article Metrics

Abstract views : 2702 | views : 2887

Refbacks

  • There are currently no refbacks.


Copyright (c) 2017 Megita Ryanjani Tanuputri, Ravipim Chaveesuk, Adi Djoko Guritno

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.