Efficiency Improvement of Transportation and Distribution Management System: The Case Study of XYZ Company

Abstract

This research aims to find ways to reduce the logistics costs of the organization by optimizing the delivery process s. From the initial study, it was found that the organization still faces problems with the use of vehicles that are not suitable for the quantity of goods to be delivered, and there is route overlap in several delivery paths. An analysis of the problems using a Cause-and-Effect Diagram revealed that the main causes of these issues are the lack of clear decision-making processes for selecting vehicles and planning routes, as well as the absence of tools to assist in vehicle selection and route planning. To address these problems, the researcher proposes two solutions: establishing a system for vehicle selection and route planning and implementing the Circuit Route Planner program to find the most accurate and efficient routes. This allows drivers to deliver goods to various points appropriately under different circumstances. The Circuit Route Planner is a dynamic route planning System that can determine transportation routes in real-time. After using this program, it was found to help reduce the company's delivery costs.