The Efficient Feed Logistics System and Strategy in Pandemic Period

The Indonesian Livestock Logistics Forum (FLPI) and Faculty of Animal Science, IPB University along with Indonesian Association of Nutrition and Feed Science (AINI) were held online training with the theme “The Most Efficient Logistics system”, (4-5/6). On the first day, Istiadi SPt, MM, The General Manager of PT Charoen Pokphand Indonesia attended as the main speaker. The agenda was attended by hundreds participants from various backgrounds and regions.

In that opportunity, Istiadi explained that logistic is about planning, implementation, physical flow of material & finished goods from the upstream to the downstream to fulfill consumer’s need and profit. Because of that, logistic must be efficiently and effectively done to get the desired profit. “Feed logistics in Indonesia, especially the feed logistic for ruminansia, can be categorized into three aspects from raw material, work in process, and finished good. Each aspects must be handled with planning and controlling,” he explained.

The raw material aspect is associated with material resource, i.e, import or local. The usage of local material has increased year over year. “This becomes the consideration whether we should stock certain materials or not. For local material, if the supplier can carry out one day delivery, we do not need much stock. For imprted material, we should pay for it first. It takes long delivery time, about 40-45 days. The transportation method also becomes consideration,” he said.

He added, the feed logistics procurement is done with confirmation process, which differentiate it with traditional procurement. The examples of the confirmation are the ships departure time and the ships location log. This method will monitor the procurement and diminish the cost problem during the delivery. Moreover, if we get accurate data, we can set the timing for the procurement.

According to him, in the pandemic period, There are somethings which should be concerned, like inventory management, collaborative supply which means to maintain good relationship with supplier, lowest possible cost which means to pay attention with supply and demand law and tranportation method, ensure quality raw material which means to concern about storage time and material quality, and also financial strategy.

The production planning is about forecasting, finished goods, and machinary part. In the pandemic period, the producer should concern the amount of required material and material which must be stocked. Besides forecasting, it is necessary to do production schedule. “Production schedule concerns about two things, make to order and make to stock. Make to order means the goods are produced based on customer order. Make to stock means the goods are produced based on inventory level,” he explained.

He explained that, in the pandemic period, not much can be fixed in short-term for storage and production layout. But, we can still do review with the actual condition. “The example of cases are the access door to feed, people, and material. Main concern admist the pandemic period is the difficulty in production planning and storage capacity. Aeration and special treament can extend the shelf-life of material,” he said.

The pandemic condition and Large-Scale Social Distancing Policy (PSBB) make a decrease on the demand of livestock feed. 

He also explained about the strategy which must be done in the decrease of feed demand. The strategiy includes marketing forecast review about the kinds disrupted feed on the sales (broiler, layer, breeder, pig, etc.), product inventory level review to adjust the stock, product work logistic review about the the delivery problem, and the las is to maintain the product qualitu to ensure the customer satisfaction.

At the end of agenda, Istiadi gave a conclusion that good logistics is capable to increase the profitability of industry, with the reduction of all work lines and the reduction of loss which is happened because of damages to the goods.

“The effective logistics system is the one that capable to face various situations and conditions, so it can increae the management strategy in making the decision to increase to company’s profit,” he explained. (IAAS/ISL)

Published Date : 05-Jun-2020

Resource Person : Hadir Istiadi SPt, MM

Keyword : Feed Logistics, Faculty of Animal Science, FLPI, IPB University, COVID-19