Feasibility Analysis of Distribution Model Application by Third Party Logistics (3PL) At PT. Semen Indonesia TBK (Case Study in Rembang Factory)

PT Semen Indonesia (Persero) Tbk. (SMGR) is one of the major players in the Indonesian cement industry. Distribution cost in SMGR is quite high, about 23.6%. It is highlighting the importance of innovation in the distribution process to minimize distribution costs. Therefore, it will directly improve the profitability and increase competitiveness of enterprises amid the competition in the cement industry. One of the innovations is by applying third party logistics (3PL) on SMGR distribution system. 3PL plays an important role as a logistics coordinator at SMGR due to the existing conditions of distribution activity which is still managed by a variety of vendors. Distribution activity that's considered as an area of 3PL system is activity in packer and palletizer machine, transport management, inventory management, warehousing and pallet management. This research is developing 3PL model and do a feasibility study of the implementation of 3PL services, especially for the distribution of products from plant Rembang. Based on the financial feasibility study using the benefit cost ratio (BCR), BCR values obtained more than 1. This indicates that the distribution system 3PL is feasible to implement. This research also conducted a risk analysis to identify risks that may occur and how to mitigate those risks.