An Evaluation of productivity factors of distribution vehicles and the effects towards distribution efficiency at PT. XYZ, Tbk

Bottled driiing water is a lucrative business especially in Indonesia, a densely populated country with lack of clean water supply. Low entry costs and the nature of the product which is very generic lure many players to enter the business. This leads to tight competition which leads to price war and slim margin. Thus, it demands the players to be as efficient as possible, especially in terms of distribution costs as the largest cost pool, in order to be not only profitable but also sustainable in the market. This thesis will then conduct a research on productivity factors and the effects toward distribution efficiency by evaluating PT. XYZ, Tbk. internal distribution fleet. It will develop data set using the internal fleet of SNT branch as the samples from 1st of March until 30th of April 2007. It will investigate and evaluate the relationship between productivity factors of distribution fleet and distribution efficiency, represented by daily distribution costs multiple regression equation modeling. Next, using the regression model, it calculates daily distribution costs of PT. XYZ, Tbk.`s internal distribution fleet for rack and box truck at the SNT branch. Last but not least, it investigate whether there is any significant statistical difference of efficiency means between the rack and box truck thus be able to identify which type of distribution vehicle is the most efficient one. Findings confirm that there is a relationship between productivity factors and efficiency with payload as the strongest factor and lead time and damage goods being insignificant factors affecting efficiency. Last but not least, the fmdings also confirm that there is significant statistical means difference of efficiency between rack and box truck with the box truck being the most efficient distribution vehicle