Designing Strategies for Inbound Logistics Performance Indicator Improvement in the Indonesian Mining Industry

Inbound logistic activity in the mining company has an essential role in receiving, store, and disseminate input from suppliers to the point of use in production operations. In the case of one of the mining companies in Indonesia, inbound logistic performance has not yet reached the optimal target. This research builds an appropriate method to measure inbound logistic processes and then design strategies based on the results of the most critical performance indicators to improve performance indicators in the inbound logistic processes. The study begins with the collection of performance indicators and criteria for measuring the performance of the mining company's inbound logistic processes. The first questionnaire is filled and processed to determine the chosen performance indicators for the study. To assess the relationships among the performance indicators, the second questionnaire is filled. The results are then processed using Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytical Network Process (ANP) to confirm the causal relationship, identify the major performance indicators, and develop strategies accordingly. Based on the result, vessel capacity utilization (31.24%) is the first performance indicator that should be the priority, followed by material availability (12.18%), delivery cycle time (12.01%), and performance in making purchase orders (10.92%). The proposed strategies recommendations are container space optimization, a specialized standard operating procedure for fast-moving goods, implementation of Radio Frequency Identification (RFID) technology for each handling unit, and differentiation in purchasing strategy based on purchasing portfolio.