Indonesian High-Speed Railway Optimization Planning for Better Decentralized Supply Chain Implementation to Support e-Logistic Last Miles Distribution

Abstract

E-logistics must have better strategy because they must satisfy unpredictable demands which came from customer. Other consumer behaviours which affect e-logistics must work more efficiently are the requirement of last miles fast delivery and more competitive pricing. Decentralized supply chain model can handle all these issues and complex logistics activity although it only has one echelon model in the supply chain structure. Decentralized supply chain model doesn’t need a distribution centre but requires inventory sharing policy. Key to success inventory sharing policy is low lead time delivery. In Indonesia, only two transportation type which can handle product in low lead time, i.e., train cargo and aircraft cargo. Train cargo still needs high lead time but has low operation cost. Aircraft cargo can handle product in low lead time but need high operation cost. The trade-off in this condition is e-logistics need low lead time transportation tenant to satisfy demand until last miles delivery but has low operation cost not as expensive as aircraft cargo. Indonesia is developing high-speed train which connects Jakarta to Surabaya. In this research, we will review the level of effectiveness high-speed train in Indonesia to realized decentralized supply chain distribution network for handling e-logistics last miles shipping using dynamic system simulation. The output of this research is efficiency review of Indonesian high-speed railway cargo to support decentralized e-logistics supply chain distribution network, compared by aircraft cargo. After we perform simulation using dynamic system simulation, delivery of products between regions by using fast train is declared feasible to deliver products with fast delivery type if in one day there are six departure time (delivery batch). If less than six departures, the railway is declared unfeasible to deliver products with fast delivery type. However, the train can save about 37% batch delivery when compared to cargo aircraft.