Abstract

Transportation is an essential component in the supply chain and contributes significantly to the total logistics costs. However, due to the pandemic, many companies, especially PT. XYZ, a cigarette and FMCG company in East Java, Indonesia, has been affected by the time and costs required for shipping goods. The lockdown system during the pandemic resulted in many cigarettes and FMCG companies experiencing delays in importing raw materials and increasing logistics costs during the Covid-19 pandemic. This study aims to design and analyze an optimization model for the distribution pattern of imports of raw materials by applying AEO (Authorized Economic Operator) certification. This study uses secondary data from company history documentation in January-June 2022 using a quantitative descriptive method and a case study approach. Based on comparison with the study from the Director General of Customs and Excise proved that as many as five other companies received Authorized Economic Operator (AEO) certificates from the Directorate General of Customs and Excise (DJBC) and got the same benefits in reducing import costs by implementing AEO and get convenience facilities in export-import transactions between companies in other countries. The comparison method for applying AEO in this study is also obtaining a supply pattern with minimum import costs. So, the conclusion of this study shows that the customs clearance process with AEO can provide an alternative import during the Covid-19 pandemic for other cigarette and FMCG companies because AEO can significantly reduce import costs by using FCL and LCL modes of transportation.

Original languageEnglish
Pages (from-to)163-183
Number of pages21
JournalReview of Integrative Business and Economics Research
Volume12
Issue number4
Publication statusPublished - 2022

Keywords

  • AEO (Authorized Economic Operator)
  • Cigarette
  • FMCG (Fast Moving Consumer Goods)
  • Raw Material Import

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