Comprehensive Logistics Functions to Improve Distribution Channel

Comprehensive Logistics Functions to Improve Distribution Channel

Reported by: Setiawan Liu

Jakarta, Pebruary 1, 2020/Indonesia Media – Indonesian salt producer or PT Garam (Persero) has seen comprehensive logistics functions within Indonesian state owned enterprises (BUMN), so the plan for the establishment of food industrial cluster under RNI holding company will be effectively run. The cluster will coordinate and integrate nine food-based enterprises to improve the quality and value addition toward products and services. “The food-based enterprises have come complete with the logistics functions. Therefor PT Garam will improve the distribution channel through the functions of BUMN including Indonesian National Logistics Agency (Bulog),” said the President Director of PT Garam, Budi Sasongko.

The food cluster, coordinated by RNI includes PT Garam, State-owned fishery firms, namely PT Perikanan Nusantara (Perinus) and Perikanan Indonesia (Perindo), PT Bhanda Ghara Reksa or BGR, Indonesian Trading Company (ITC), seed and agriculture company PT Sang Hyang Seri/SHS. Through the implementation of cluster system, RNI will change the business model to improve logistics efficiency, and create value addition toward the products and services. “Bulog itself manage its outlet sale (for staple food). We will use as distribution channel too,” said Budi Sasongko.

The outlet is not the only one, since PT Garam also works together with some modern retailers such as Transmart, Indomaret. “We have been going upstream since two years ago. PT Garam sells food and processing products while also improving the logistics system,” said Budi Sasongko.

The President Director RNI Holding Company Eko Taufik Wibowo previously said, that the concept of food cluster would implement an effective and efficient supply chain. The nine-state owned companies, excluding Bulog would be managed more effectively for business improvement. But RNI still has not decided yet if the establishment of food cluster would most likely be holding company. the improvement will be expected to reduce import, and maintain price stability of staple food especially during religious holiday such as Eid al-Fitr (festival of breaking the fast). The Food cluster is also expected for strengthening human resources. “the Upstream program of PT Garam is supported by the system of both ATL (above the line) and BTL (below the line) marketing. It means, that all activities will be parallel with logistics functions. For example, BGR (state owned enterprise) which engage in logistics services throughout Indonesia. The company has well-established logistics solution for our products too,” said Budi Sasongko.(sl/IM)

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