Analysis of Spare Parts Distribution System Using Nearest Neighbor Method and Saving Matrix Method

Abstract

Distribution is an important part of a company's operational activities, especially in ensuring timely delivery at an economical cost. PT XYZ is an industrial spare parts provider company located in Bekasi. The main problems faced are high operational costs and late delivery due to less than optimal distribution route selection. The distribution routes used often do not consider the shortest distance between the initial point of collection of goods and consumers, so that travel time and fuel costs increase significantly. This is exacerbated by traffic congestion in the Jabodetabek area so that fuel costs increase, especially in the period from July to December 2024, where distribution costs soared. This distribution problem is further complicated by the initial routes that are not well organized. PT XYZ initially used 10 distribution routes that were inefficient and unstable. These routes are often excessive in covering certain areas without optimizing delivery to adjacent areas, resulting in wasted travel distance and time. In addition, changes to routes made without data-based analysis increase the risk of increasing operational costs, especially uncertain traffic conditions. This study aims to improve PT XYZ's distribution system by applying two methods, namely Nearest Neighbor and Saving Matrix. The Nearest Neighbor method focuses on selecting the closest route from the starting point gradually until all deliveries are completed. The Saving Matrix method helps increase efficiency by combining adjacent delivery points, so that the distance traveled can be minimized. After implementing both methods, the distribution routes that initially numbered 10 were successfully simplified into 9 more efficient routes. The results of the study showed that the implementation of this method significantly reduced the total distribution distance traveled, from 218.1 km to 98.8 km. In addition, operational costs that previously reached IDR 18,750,000 during the period from July to December 2024 were successfully reduced to IDR 11,082,240, resulting in savings of 40.89%. This reduction in the number of routes and distance traveled not only reduces fuel costs but also increases the timeliness of delivery, thereby increasing customer satisfaction.