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The Challenges for LSP to Support Robust and Sustainable Distribution System

  • Yeni SUMANTRI (Department of Industrial Engineering, Faculty of Engineering, Universitas Brawijaya) ;
  • Femiana GAPSARI (Department of Mechanical Engineering, Faculty of Engineering, Universitas Brawijaya) ;
  • Gunawan Hadiko (Metal and Machinery Industrial Center, Ministry of Industry)
  • Received : 2023.11.22
  • Accepted : 2024.07.05
  • Published : 2024.07.30

Abstract

Purpose: Increasingly limited environmental resources encourage all sectors to implement robust distribution systems, including Logistics Service Provider (LSP) as a company that manages customer logistics activities. However, efforts to achieve a robust distribution system have many challenges. To overcome these challenges, as a first step, LSP needsto classify and analyze the challenges faced and find solutions. Knowledge of the challengesin managing robust logisticsisstill not widely researched in developing countries. This paper explores existing research gaps in the region. Research design, data and methodology: The research enquiries used are a questionnaire and in-depth interviews. In the field study, surveys, observations, interviews related to robust logistics implementation in the LSP were carried out. Results: The results of the study show that although robust logistics is recognized as very important, understanding among LSPs is still very diverse. The main challengesfound in this study come from the economic aspect and the internal conditions of the organization. Conclusion: LSP is advised to carry out internal strengthening of the company, especially for economic and organizational aspects therefore they can implement robust and sustainability practices more intensively. LSP needs to have good financial support in order to implement the aspects on an ongoing basis.

Keywords

Acknowledgement

This study was supported by Universitas Brawijaya with a contract number of 975.41/UN10.C10/PN/2022.

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