Analysis of Transportation Network Design with Time Window Delivery Method and Milk Run Method to Improve the Efficiency of the Delivery Process in B2B-Flavor House Companies
Niche Evandani (a), Dr. Nofrisel, M.M
(a) Universitas Indonesia-Fakultas Ekonomi dan Bisnis
Abstract
The flavor business has a high complexity because the finished goods of materials are unique and specific for most customers. Inaccurate delivery schedule can be a source of waste in delivery process PT XYZ one of the Flavor Houses in Indonesia. During this time, PT XYZ implemented shipments to customers using the direct shipment method, while Purchase Orders (PO) provided by customers mostly do not have a clear pattern. Therefore, it is important for PT XYZ to conduct further analysis of the distribution network design in order to improve delivery cost efficiency. In this study, it was discussed further related to the analysis of the distribution strategy with the delivery time window and milk run method for delivery to PT XYZ-s customers. The delivery time window have main principle on grouping and merging are carried out to customers who have the same destination area. Determination of the Milk Run route is based on the customer cluster area and the Clarke-Wright algorithm principle by considering the limitation of time window and transportation fleet capacity. This study uses secondary data including PT XYZ-s delivery report period 2018, distance data from the Distribution Center in Karawang with customer delivery locations through Google Maps, and other secondary data obtained through literature studies. In the results of the study, it was found that 76% of customers at PT XYZ had higher fleet rental per unit of goods (KG) than distributors who applied the window time strategy. In addition, there are 18% of customers who have met the volume threshold for individual shipments, while the remaining 82% can implement milk run method to improve the delivery efficiency.
Keywords: distribution, efficiency, time window, milk-run, transportation
Topic: Innovation, IT, Operations and Supply Chain Management