Analysis of Material Handling and Distribution System in Less Container Load (LCL) Cargo Shipment on Delivery on Time at a Sea Freight Forwarder: Using Structural Equation Modeling
DOI:
https://doi.org/10.38035/hrm.v1i2.74Keywords:
Material Handling, Distribution System, Delivery on Time, Less Container Load, Structural Equation ModelingAbstract
Timely delivery is a central performance measure for freight forwarding companies, yet less-than-container-load shipments, in which cargo from several customers is consolidated in one container, are vulnerable to delays caused by cargo handling and long distribution chains. Previous studies on shipment delays have mostly described the causes of delay or examined customer satisfaction, and few have tested material handling and the distribution system together with consolidated container shipments as a mechanism that leads to on-time delivery. This study aims to analyze the effect of material handling and the distribution system on on-time delivery, directly and through less-than-container-load cargo shipment, at a sea freight forwarder in Bekasi. This study used a descriptive quantitative approach, with a questionnaire completed by 100 sea division workers, and analyzed the data using partial least squares structural equation modeling in SmartPLS 3.3.9. The results show that material handling and the distribution system significantly and positively affect cargo shipment and on-time delivery, that shipment affects on-time delivery, and that it significantly mediates both relationships. This study's novelty is the empirical evidence that consolidated shipment performance transmits the effect of handling and distribution practices to delivery punctuality.
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