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The Challenges for LSP to Support Robust and Sustainable Distribution System

The Journal of Distribution Science / The Journal of Distribution Science, (P)1738-3110; (E)2093-7717
2024, v.22 no.7, pp.23-32
https://doi.org/10.15722/JDS.22.07.2024.07.23
Yeni SUMANTRI
Femiana GAPSARI
Gunawan Hadiko
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Abstract

Purpose: Increasingly limited environmental resources encourage all sectors to implement robust distribution systems, including Logistics Service Provider (LSP) as a company that manages customer logistics activities. However, efforts to achieve a robust distribution system have many challenges. To overcome these challenges, as a first step, LSP needsto classify and analyze the challenges faced and find solutions. Knowledge of the challengesin managing robust logisticsisstill not widely researched in developing countries. This paper explores existing research gaps in the region. Research design, data and methodology: The research enquiries used are a questionnaire and in-depth interviews. In the field study, surveys, observations, interviews related to robust logistics implementation in the LSP were carried out. Results: The results of the study show that although robust logistics is recognized as very important, understanding among LSPs is still very diverse. The main challengesfound in this study come from the economic aspect and the internal conditions of the organization. Conclusion: LSP is advised to carry out internal strengthening of the company, especially for economic and organizational aspects therefore they can implement robust and sustainability practices more intensively. LSP needs to have good financial support in order to implement the aspects on an ongoing basis.

keywords
Challenge, Distribution, Logistics, LSP, Supply Chain, System

The Journal of Distribution Science