Distribution Channel Analysis of Logistics in Supply Chain Management at the Outlet IAP With VSM in Agricultural Sector Industrial Companies

Abstract

PP London Sumatra Indonesia Tbk is a company engaged in agribusiness, which tried to become a retail company in 2016 with Kahuripan Tea products, namely teabags processed from their factories and gardens in the Bandung, West Java area. With marketing areas in West Java and East Java, the focused area is the Jabodetabek area in this research. The problem faced by the company is the delay in the transport order process, which results in delays in the delivery of Kahuripan Tea products to customers. The data on delays used are data from October to December 2019. The problem occurs because there are still many activities that are not value-added which are classified as waste. This research aims to analyze improvements in the transport order process that occurs in the business development and procurement department at PT. PP London Sumatra Indonesia Tbk, with a lean manufacturing approach with the value stream mapping (VSM) method, analyzes the dominant waste in the transport ordering process. Based on the analysis results, there were three improvements, namely the approval process, the price bidding process, and the vendor selection process. The results of the improvement evaluation obtained a decrease in lead time by 560 minutes and an increase in the value of Process Cycle Efficiency by 46%. So, this improvement will increase the practical value in the transport ordering process: that way, PT. PP London Sumatra Indonesia Tbk can increase customer value with fast service time and good quality.