Fajar Indra Kurniawan, Firdaus Alamsjah

Digital Transformation of Import Logistics for Operational Efficiency: Case-Based Evidence from the Plastics Industry

Introduction

Digital transformation of import logistics for operational efficiency: case-based evidence from the plastics industry. Digital transformation of import logistics in the plastics industry. Study shows IoT, Blockchain, & cloud systems cut costs, boost direct deliveries, and improve efficiency & sustainability.

Abstract

This study aims to explore the use of digital systems to reduce import process costs, increase the percentage of national direct deliveries from ports to consumers, and analyze the impact of proposed improvement measures. The research employs a single case study approach with data collected through observation, document analysis, and quantitative data collection from one of the biggest plastic resin distribution companies in Indonesia. The data were analyzed using the CIMO (Context-Intervention-Mechanism-Outcome) logic to understand the context and impact of the interventions implemented. The findings reveal that the application of digital technologies such as the Internet of Things (IoT), Blockchain, and cloud-based management systems with real-time container tracking digital applications can optimize supply chain processes and sustainability. There was a notable reduction in the national average container storage costs at ports from $2.4/Ton to $1.8/Ton and an increase in the average percentage of national direct deliveries from ports to consumers from 17.3% to 22.0% before and after the implementation of the container tracking system. These results confirm that adopting digital technologies in plastic resin distribution companies not only improves operational efficiency, provides a competitive advantage in the market but also reduces carbon emission by using single trip directly to customers. Companies are advised to enhance employee training related to new technologies and adopt integrated systems within supply chain processes. Furthermore, continuous innovation using technologies such as artificial intelligence is essential for maintaining industry competitiveness and sustainability.

Review

This study presents a timely and highly relevant exploration into the digital transformation of import logistics within the plastics industry, specifically focusing on operational efficiency. The paper's objectives are clearly articulated, aiming to quantify the benefits of digital systems in reducing import process costs and enhancing direct deliveries, while also analyzing the broader impact of these improvements. The chosen context of a major plastic resin distribution company in Indonesia provides a valuable, real-world setting for this investigation. The initial findings, particularly the quantitative evidence of cost reduction and increased direct deliveries, suggest a practical and impactful contribution to the field of supply chain management and logistics. The methodology, employing a single case study approach underpinned by CIMO logic, is appropriate for a deep dive into the complex interplay of context, interventions, mechanisms, and outcomes. The data collection methods, encompassing observation, document analysis, and quantitative data, provide a robust foundation for the analysis. The identified digital technologies – IoT, Blockchain, and cloud-based systems with real-time tracking – represent cutting-edge solutions for supply chain optimization. The documented reduction in container storage costs and the significant increase in direct deliveries are compelling outcomes that underscore the operational benefits. Furthermore, the explicit connection made between these digital adoptions and the reduction of carbon emissions through optimized routes highlights a crucial contribution to sustainability, aligning with contemporary business imperatives beyond mere financial gains. While the study offers valuable insights, the single case study design, although providing depth, inherently limits the generalizability of the findings to other contexts or industries. Future research could explore comparative case studies across different companies or sectors to validate and broaden the applicability of these digital transformation strategies. It would also be beneficial to delve deeper into the specific mechanisms through which IoT, Blockchain, and cloud systems interact to produce the observed outcomes, perhaps detailing the challenges encountered during implementation. The recommendations for enhanced employee training and continuous innovation with AI are pertinent, suggesting practical avenues for both practitioners and future academic inquiry into the long-term strategic evolution of digital logistics. Overall, this paper makes a significant contribution by empirically demonstrating the tangible benefits of digital transformation in import logistics, particularly its dual impact on efficiency and sustainability.

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