Flour Distribution, the Problem and Its Causes, Case of XYZ Company, Indonesia

The distribution of wheat flour in Indonesia uses almost all type of marketing channels. Markets of wheat flour involve manufacturers, wholesalers, retailers, and end customers. The distribution of XYZ wheat flour company is direct distribution, from their company to the industry, especially to western and eastern parts of Java Island. It was found that XYZ company has not satisfied with their distribution performance, hence in this study, the problem and its causes was analyzed. Using the criteria of response time, product variety, availability, customer experience, time to market, order visibility and return ability, an in-depth-interview were conducted to several types of distribution channel. The results showed that unsynchronized information and lack of coordination in distribution policies are the most influencing factors that cause inefficiency problem of XYZ product distribution. Keywords : distribution channel, performance, root-cause analysis, wheat flour.