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Human Resource in Indonesia Logistics Development

Human Resource in Indonesia Logistics Development. Zaldy Masita Chairman of Asosiasi Logistik Indonesia (ALI). Bandung. 19 July 2017. Indonesia Logistics Outlook 2015. 6 Logistics Key Drivers. Strategic Commodity Infrastructure Regulation Logistics Service Provider

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Human Resource in Indonesia Logistics Development

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  1. Human Resource in Indonesia Logistics Development Zaldy Masita Chairman of Asosiasi Logistik Indonesia (ALI) Bandung 19 July 2017

  2. Indonesia Logistics Outlook 2015

  3. 6 Logistics Key Drivers • Strategic Commodity • Infrastructure • Regulation • Logistics Service Provider • Information Technology & Communication • Human Resources

  4. Logistics Cost Structure Contribute around 40%-60% of the cost Contribute from 0% - 30% Contribute around 0-20% Contribute from 5 -15%

  5. Logistics Service Provider (LSP)

  6. Logistics Service Provider Driver Low Asset Investment High IT Involvement Low High

  7. Logistics Service Provider Driver Low Part of Selling Price Risk Total Logistics Cost Part of Logistics Cost High Revenue Low High

  8. Logistics Service Provider Driver High Business Sustainability Low Barrier to Entry Low High

  9. Logistics Service Provider Driver Low Operation Execution High Planning Low High

  10. Logistics Service Provider Driver Low Human Resource Quantity High Human Resource Quality Low High

  11. Logistics Service Provider Capabilities Finished goods warehousing Inbound logistics Production Manuf Materials Mgt After sales service Logistics Service Provider (LSP) Customer delivery Shippers Express couriers 1PL/2PL Freight Forwarders Local transport companies Logistics companies 3PL/4PL Strong capability Medium capability No capability

  12. Logistics Cost vs 3PL Revenue 3PL Revenue vs Logistics Cost Logistics Cost vs GDP - efficient Source: Armstrong & Associates 2011

  13. The Challenge of Logistics Human Resources Development in Indonesia • Limited Logistics Education Institution (S1,S2, vocational) • Scarcity for management level in Logistics and Supply Chain • Less than 2% of annual salary for training budget in local logistics company • Limited Standarization in Logistics that also cover Safety, Health, Environment Aspect and Multimoda • Different Economy & Infrastructure condition in all region in Indonesia, and high uncertainty in Logistics Service Level • New Technology in Logistics & SCM

  14. Action that need to take to improve human resource quality in Logistics • Government need to boost up education effort in Logistics by • Increase budget to support education institution (state & private) to open Logistics Program • Overseas scholarship for master degree in Logistics • Incentive for private company that provide logistics training for their employee • Open more Community College in Logistics in all province • SKKNI for Logistics • Online Course for Logistics & Supply Chain • Internship program for lecture in private company & BUMN in logistics area for 6-12 months • Support ICT & innovation in Logistics area

  15. Digital supply chain • Logistics Control Tower • Cloud Based Application • IOT • AI & Robotic • Big Data

  16. Start Up in Logistics

  17. The Progress of Logistics Profession Development in Indonesia • Since 2003 – ALI run workshop/seminar/training in Logistics and Supply Chain every month. • ALI establish Sembada Pratama in 2010 as the first School in Logistics and Supply Chain (vocational) www.sembadapratama.com • 2011 – ALI and JILS (Japan Institute of Logistics System) establish certification of Kaizen Logistics in Indonesia • December 2012 – BNSP appoint ALI as the first organization as Lembaga Sertifikasi Profesi (LSP) for Logistics • March 2013 – European Logistics Association (ELA) agree to appoint ALI to establish ELA certification in Indonesia

  18. Education is long term investment and could not be measure with short term approach

  19. TerimaKasihwww.ali.web.id

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