Modelling Operation of Logistics Management in Modern Market: A Case Study in Indonesian Retail Company

Logistics management holds an important role for every company include product procurement, product storage, and product distribution. Rapid technology development is insisting the company to use all of its resources maximally and professionally to support their success. Implementation of logistics management can be seen in the retail company. Design of the logistical management operation model, using the System Development Life Cycle (SDLC), needs to be done for better implementation. The needs for design are identified by using system request and feasibility analysis that will be able to reduce non-value added time in the order picking process and able to simplify the company’s logistics activity. The system entity is analyzed and shows the affecting factors are: input, process, output, objectives, stakeholder, resources, internal control, operating constraint, opportunities, and threats. Then, the conceptual model of the logistics management model is built through the application of value chain analysis and the application of the canvas operating model. At the new warehouse location, a warehouse management system will be implemented and built collaboration with several fast-moving consumer goods (FMCG) suppliers. Then Business Process Modelling Notation (BPMN) is used to model logistics business processes, inbound logistics business processes, inventory management business processes, and outbound logistics business processes. The business process model will be used as a reference for the company to carry out its logistics business operation.