To read the full version of this content please select one of the options below:

Investigating the logistics costs model: recent update in Indonesia

Effnu Subiyanto (Department of Economics, Universitas Katolik Widya Mandala (UKWM), Surabaya, Indonesia)

Journal of Science and Technology Policy Management

ISSN: 2053-4620

Article publication date: 5 February 2021

Issue publication date: 10 June 2021

268

Abstract

Purpose

This study aims to shed light on defining precisely variables of logistics costs model in Indonesia’s cement projects and generally other projects scientifically. The variables have previously so far been identified based on pragmatism and practical experience without rigorous scientific and empirical findings. The models are deeply awaited by every project practitioner, especially project controllers, in Indonesia.

Design/methodology/approach

Data for the period 2010–2018 of eight cement projects were taken in quarterly and tested with a statistical tool EVIEWS10 to develop a robust proposed model. Investigating models were done by literature studies and empirical studies, and the results had been examined by statistical tests to be determined as robust or not-robust models. The certain period taken due to the availability data of the cement projects in which after 2018 was unavailable because the cement product is overcapacity in Indonesia.

Findings

The model proposed is resulted by synthesizing logistics literature and empirical from the cement projects in which the model consists of foreign logistics costs, domestic manufacture, and domestic logistics costs as the best findings to develop logistics model for the cement projects with a-10 independent variable. It significantly found the variable of foreign logistics costs have taken higher portions in the model, and therefore must be prior carefully anticipated.

Practical implications

To guide investors to alert with several important variables of logistics in Indonesia. As education that to invest in Indonesia, the best logistics model must prior be known to anticipate further uncertainty.

Originality/value

This study is advanced applied research of logistics models developed by author for future possibility implementation in the sector beyond cement projects.

Keywords

Acknowledgements

Competing interests: The author assures that there are no competing interests to be mentioned.

Funding: This research received no specific grant from any funding agency in the public, commercial or not-for-profit sectors.

Authors' contributions: This is an original article from the author. The author constructed, developed, tested, collected the sample and treated data on his own. The author read and approved the final manuscript.

Citation

Subiyanto, E. (2021), "Investigating the logistics costs model: recent update in Indonesia", Journal of Science and Technology Policy Management, Vol. 12 No. 2, pp. 331-350. https://doi.org/10.1108/JSTPM-03-2020-0034

Publisher

:

Emerald Publishing Limited

Copyright © 2020, Emerald Publishing Limited

Related articles