question archive The more transportation access options, the easier it is to build a supply network

The more transportation access options, the easier it is to build a supply network

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The more transportation access options, the easier it is to build a supply network.

Modes of transportation describe various methods of moving products from one place to another. The support of the Indonesian government in developing the country's infrastructure has become an advantage for companies to reduce costs in distributing products that are needed by the people.

 

The development of toll road, port (sea toll) infrastructure, railroad lines, to the construction of airports in the regions aims to facilitate access in and out, especially for businesses to reach the global supply chain.

 

Question:

 

Based on the description above, analyze how the role of infrastructure and regulations in transportation currently applies to the national supply chain (especially in the country)!

How to optimize transportation infrastructure so that it can support supply chain performance and encourage trade growth especially in Indonesia?

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The role of infrastructure in transportation that applies to the national supply chain in Indonesia is optimizing speed and efficiency, managing cash flows, customer, and warehouse management.

The ways to optimize the transportation infrastructure, so that it supports supply chain performance and encourages trade growth in Indonesia are technology-driven infrastructure, healthy relationships with the channel members, and optimizing inventory.

Step-by-step explanation

Transportation infrastructure planning should be achieved in two different aspects environmentally sustainable and climatic adaptation.  Investments in transport infrastructure have changing patterns of specialization and growth that can be seen in the historical data.  Transportation efficiency determines the efficiency of moving goods. It takes a crucial part in manipulating logistics. 

Indonesia's logistics sector is one of the strongest and rapidly growing sectors due to the continuous development of the country's economy. Indonesia's logistics have adopted an integrated approach to ensure efficiency in the entire supply chain and have been ranked 53rd according to the latest records of Word bank's logistics performance index. Indonesian governments have an expenditure plan in tens of billions of dollars to construct 3,600 km of new roads, 15 new airports, 24 new seaports, 3,258 km expanded railway network, and improved public transport in 29 cities. 

The role of infrastructure in transportation that applies to the national supply chain in Indonesia are:

i. Optimizing the speed and efficiency of the national supply chain. This ensures that the flow of goods is managed efficiently. The technology also plays an important role in optimizing the operations throughout the supply chain through the technological driven infrastructure. Technology can improve efficiency as well as reduce costs. 

ii. Managing frequent cash flows in the economy. If the transport infrastructures are efficient, there are more investments in infrastructure and technology, managing the cash flows in the country. 

iii. Managing warehouses and ensuring connectivity in those warehouses. Infrastructure plays a very important role in the transportation of the goods because once goods are manufactured, efficient and technology-driven warehouses are needed to keep the goods safe and secure to avoid any loss.

iv. Managing customers and satisfying their demand. In the global supply chain, customers play an important role due to business competitiveness. The well-designed infrastructures help Indonesia to satisfy its customer's needs. 

The role of regulations in logistics that applies to the national supply chain are:

i. Indonesia has developed new policies and improved national and international logistics systems to overcome the challenges of inadequate infrastructure, the prevalence of illegal charges and transaction fees, poor export and import lead times, bottlenecks on the ports, and others. 

ii. The government of Indonesia has issued Presidential Instruction No. 5/2008 that focuses on economic programs.

iii. The integrated framework collaborated with the action plan in the Presidential Regulation No. 26/2012, that has synchronized the content such as connectivity, economic corridors, and master plan for acceleration and expansion of economic development of Indonesia. These regulations help to build an efficient supply chain.

The ways to optimize the transportation infrastructure, so that it a support supply chain performance and encourage trade growth in Indonesia are:

i. Technological driven infrastructures: In today's modern world, technology plays an important role in supply chain visibility and coordination among the supply chain members. The technology that can streamline the processes can optimize transportation infrastructure. 

ii. A healthier relationship with the channel members: An important indicator that defines successes is the healthier relationship with the channel partners because they can help in maintaining and cultivating the ongoing process and optimizing the warehouse and infrastructure facility that in turn will encourage trade growth in Indonesia.

iii. Optimizing inventory to reduce cost: In any business, the desire to reduce costs and improve inventory management is very important. In transportation infrastructure, inventory quantities should be optimized, this will decrease the cost of maintaining the inventory at warehouses and will increase cash flow in the Indonesian economy.

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