Designing Efficient Logistic System of Fresh Agricultural Products for Small Farms

Abstract

This research paper presents a framework of an efficient logistics system of fresh agricultural products for small farms. This paper illustrates efficient logistic system with a case study of apple products in East Java – Indonesia, in order to increase competitiveness against imported apples. The research focuses are small farms, farmer groups, middlemen, and distributors. Data are obtained from observations and interviews with the farmer's groups which are representing small farms and distributors which are treated using process activity mapping (PAM), value stream mapping (VSM), and activity-based costing (ABC). Data analysis has identified value added and non-value added activities. Based on the analysis, this paper proposes an alternative efficient logistics system. However, this research has not been fully integrated due to insufficient data for designing holistic efficient logistics system for apples product by taking into account country and regional conditions.