Logistics Cost Estimation and Analysis for Exporting Green bean from Indonesia to Singapore

Abstract

This article involved a supply chain for exporting green bean from Indonesia to Singapore. The objectives were to identify the cost structure and estimate the cost of the activities in the supply chain. Survey data were collected from three major stakeholders, which were 100 farmers, three collectors, and one exporter in the Central Java Province, the main source of exported green bean. The cost structure consisted of the costs of various activities for each stakeholder. It was found that activity with the highest cost were harvesting cost for the farmers, material handling cost for the collectors, and administration cost for the exporter. Statistical data analysis was performed to identify significant factors affecting the farming cost and logistics cost so as to recommend the cost-effective practices. Analysis results showed that (1) not performing three activities, including making soil beds, setting mulches, and using the 2^nd seeding, could reduce the farming cost without losing the yield of green bean; and (2) using motorcycle could lower the delivery cost from farms to pack house for the collectors.