Benefit-Cost Analysis of Semi-Automated Technology Implementation for Outbound Logistics Process: A Case Study

The need of automated warehouse system arises from the fact that manual process could cause human error which may affect warehouse productivity. Automated warehouse could help the company to reduce its operation time, response time, increase accuracy, and increase warehouse productivity. Kamadjaja Logistics, one of Indonesia logistics company, still implement manual process in all of its process. Kamadjaja Logistic wants to automate its outbound logistics process in order to obtain faster delivery time, decreasing labor cost, and increasing labor efficiency. There are two alternative technologies suggested, Actiw LoadMatic and ATLS Skate Loader. Both alternative will be analyzed trough benefit cost analysis in order to know whether it is financially feasible to be run. The result obtain from LoadMatic is 1.1912 while Skate System value is 1.2600. Based on the benefit cost value, the suggested technology to be implement is Skate System. Besides benefit cost, the existing condition will be analyzed through work sampling analysis. Based on work sampling analysis, all of the labor in outbound logistics are having a higher nonworking activity rather than working activity. Sensitivity analysis will also be done in order to obtain which variable is the most sensitive one that affecting the result of benefit cost value. The most sensitive variable according to sensitivity analysis is investment cost