A Conceptual of Supply Chain Management Distribution System to Minimize Leadtime and Distribution Fees in Retail Industry

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International Journal of Research and Innovation in Applied Science (IJRIAS) | Volume V, Issue IV, July 2020 | ISSN 2454-6194

A Conceptual of Supply Chain Management Distribution System to Minimize Leadtime and Distribution Fees in Retail Industry

 Umi Marfuah1, Mutmainah2, Rina Nopianti3
1,2 Department of Industrial Engineering, Muhammadiyah University, Jakarta Jl. Cempaka Putih Tengah 27 Jakarta Pusat
3Department of Accounting, Bina Bangsa University, Serang

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Abstract – PT ABCD is a company engaged in retail in the form of shoe products. The study was conducted in August 2018 until January 2019 in the Logistics and distribution division. The problem that predominates in this division is the problem of delays in the distribution of goods because the distribution process is still done conventionally with improvised methods and human resources. In August 2018 the amount of costs incurred was Rp.1,766,725,193 and experienced an average increase of 4% every month. From the observational data, the leadtime achieved was still below the company’s target of 80%, the average delay percentage was 6% or 4926 koli from 74660 koli. With the Supply Chain Management distribution method, including the Crossdocking, Direct Shipment and Warehousing methods. By comparing the three methods the lowest leadtime is generated and simulating it, the right method for the company is obtained, namely the cross docking distribution method with the results of the fastest lead time calculation, which is 240 minutes faster than the other methods. And from the simulation a result also produced the same method with the achievement of 149.48 minutes lead time and has the smallest percentage of error values that is 38%.
Keywords: Supply Chain Management, Crossdocking, Direct Shipment, Warehousing.