Optimizing the Subsidized Fertilizer Distribution from Line I Warehouse to Line IV Warehouse at PT Pupuksriwidjaya Palembang in Central Java

Abstract

This research aims to examine the optimization of subsidized fertilizer distribution in the context of PT Pusri Palembang's operations in Central Java. Distribution of subsidized fertilizer is an important chain that supports a sustainable agricultural sector. However, problems arise as demand for fertilizer increases and the complexity of its supply chain affects the availability and delivery time of fertilizer to farmers. The main findings in this research identify several main problems in the distribution of subsidized fertilizer, including empty fertilizer stocks, supply delays, technology and information constraints, high transportation costs, lack of supervision, non-uniform policies, limited storage facilities, unethical actions, lack of standard guidelines, and contract issues. This research produced several recommendations for improvement including improving business processes, utilizing information technology, stricter supervision, optimizing distribution contracts, and using the time charter method in transportation contracts. It is important to implement Dwell Time management to reduce fertilizer waiting time in distribution warehouses. The application of benchmarking to best distribution practices in the fertilizer industry is also a crucial strategy in efforts to improve. PT Pusri Palembang can improve the efficiency and quality of distribution services through identifying the best competitors and adopting their successful strategies. This research provides a comprehensive view of the problem of subsidized fertilizer distribution at PT Pusri Palembang in Central Java and offers concrete solutions to increase distribution availability and efficiency. Through the implementation of recommendations for improvement, researchers hope that the distribution of subsidized fertilizer will become more efficient, support sustainable agriculture, and offer greater benefits for farmers in Central Java.