The development of a conceptual rural logistics system model to improve products distribution in Indonesia

Abstract

Purpose: The role of speculators in distributing products across rural areas is increasing the poverty rate in Indonesia. Therefore, this study aims to develop a conceptual framework of the rural logistics system model to influence the welfare and sustainability of farmers.

Design/methodology/approach: Conceptual framework was used to evaluate logistics and supply chain networks. The method consists of developing stages based on four components, namely network structure, management, resources, and business processes. Furthermore, it also proposed the management function of the rural logistics system models.

Findings: The model of a rural logistics system obtained in this study consists of 1) a trade  related to the network of business, 2) a freight, related to the flow of goods, and 3) management functions related to crucial activities in rural logistics management.

Research limitations/implications: This model is conceptual, therefore, future studies must accommodate optimizing models to predict the performance of rural logistics systems when they are applied in Indonesia.

Practical implications: This study promotes the actors in intermediaries of the rural logistics system to synergize the distribution of goods effectively and efficiently. It also reduces the role of speculators in product distribution in form of availability and price in rural areas.

Social implications: This model is a strategy to achieve the Rural Sustainable development Goals (Rural-SDGs) agenda and complements the Blueprint of The National Logistics System.

Originality/value: There are fewer studies in rural logistics compared to other fields such as agricultural logistics, food logistics, disaster logistics, etc. Therefore, this study organizes the actors in the rural logistics network and plans management functions for the efficient distribution of products across Indonesia. It also raises the awareness of logistics management to improve the welfare of rural communities.