OPTIMIZING SUPPLY CHAIN PERFORMANCE THROUGH EFFECTIVE TRANSPORTATION SCHEDULING AND LOADING DOCK ALLOCATION IN FMCG COMPANY

Abstract

This research is centered on PT SM, an FMCG company specializing in home care products, which is facing challenges in outbound processing, resulting in unfulfilled daily delivery targets. The process loading time for a single shipment is 3 hours, posing a hindrance to handling 120 shipments daily. Consequently, the company achieves only 100 deliveries per day and resorts to weekly overtime. To address this issue, the study adopts the Business Process Improvement (BPI) method and deploys Business Process Model Notation (BPMN) to identify bottlenecks. The results highlight the necessity to regulate Vendor arrivals to enhance the preparedness of warehouse operators. The research introduces a truck regulation arriving system based on the available loading docks and shipment plans in generating the time of arrival for the shipping trucks, intending to reduce the loading time per shipment. Following implementation, the loading time to process a single shipment decreased to 2.7 hours resulting in an increase of delivered shipments per day by 11.35%. Notably, the improvement results in an annual saving of 12% (IDR 1,095,000,000) for PT SM, thus justifying investments by eliminating overtime expenses. This study highlights significant enhancements in PT SM's outbound processes and overall cost-efficiency.