The Importance of Logistic Strategy in Manufacturing Company

The common definition of logistics strategy is an application of management principles in logistics activities with the goals to make the personnel and goods workflow perform effectively.

Logistics strategy is part of the supply chain management (SCM) process that has an important function in planning, implementing, and controlling the effectiveness and efficiency of storage and goods flow, services and information, to meet consumer needs.

There are several logistic strategies that you must implement in order to get maximum results.

First, You must execute several logistics strategies such as planning and fulfillment functions, budgeting functions, procurement functions, storage and distribution functions, maintenance functions, deletion functions, and control functions. You should accomplish several functions above, to get the result.

One of the beneficial aspects of the logistics strategy is when you can cut the transportation lines to reduce logistics time and costs. There is good news because in 2019 there will be a new port that will support industrial businesses in the West Java region.

The Ministry of Transportation Indonesia is confident that the construction of Patimban Port in Subang (West Java) that started in June 2018 will complete in March 2019. On the other hand, the port operator tender already open since July 2018.

Next, the Patimban Port, valued at USD 1.1 billion, is estimated to be the center international port in Indonesia. The total capacity of this port is 7.5 million units, equivalent to twenty feet (TEU).

After the Patimban port operates, the government expects that this port will reduce the busy traffic at Tanjung Priok port in Jakarta, which is the most hectic port in Indonesia (handling more than half of the country's total international trade). In the future, Patimban Port will specifically focus on handling goods from the industrial zone in Karawang, West Java (especially automotive products).

The Patimban port will facilitate the logistics line for manufacturing companies in the Karawang area, West Java. The seaport requires 356.23 hectares for the reserve area and terminal, while the other 15.79 hectares is for access roads. The Ministry of Transportation needs to coordinate with the Ministry of Public Works and Housing of republic Indonesia for the road constructions.

Land acquisition is one of the biggest obstacles in developing (large) infrastructure projects in Indonesia because landowners tend to ask for very high prices for their land. This often leads to delays in construction (sometimes requiring a court decision) or even a complete cancellation of the project.

Besides, the main road to Patimban port, the government also provides a toll road to the port. The consortium consisting of four well-known developers such as Jasa Marga, Surya Semesta Internusa, Daya Mulia Turangga, and Jasa Sarana have expressed their interest to develop this toll road.

Based on the schedule, the first phase of the Patimban project is expected to complete in March 2019. In this first phase, the port will have a capacity of 800,000 TEU and vehicle terminals that can handle 360,000 units per year.

The existence of Patimban port will increase the attractiveness of investing Indonesia. Of course, the performance of the industrial estate in Karawang will also increase with the existence of the new Patimban port. One of the industrial estates that is located in Karawang, West Java is Karawang New Industry City or we are usually short by name called KNIC.

KNIC located in a strategic location near the Halim Perdana kusuma international airport, Soekarno Hatta International airport, and Tanjung Priok port. This the right place to build manufacturing plant or warehouse.

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