Abstract for: Enhancing Value Creation in Freight Forwarding: A System Dynamics Perspective

Freight forwarders, serving as pivotal logistics intermediaries, confront a myriad of operational challenges, primarily originating from their role in orchestrating a diverse range of logistics solutions by dealing with varied demands from their clientele amidst the sector’s dynamic landscape. This complex milieu presents obstacles that may impede the formulation of effective policy interventions within the realm of freight forwarding. This paper endeavors to empirically delve into the intricate operational dynamics of freight forwarding from a value chain perspective. To achieve this aim, a system dynamics approach is deployed to scrutinize the processes involved in value creation within freight forwarding operations. A specific case study in the region of Tanjung Priok, Jakarta is presented herein. The findings from this study shed light on the potential avenues through which freight forwarders can augment their value creation, particularly by enhancing the performance of their logistical services. This study contributes valuable insights for both practitioners in the freight forwarding industry and policymakers by offering strategic guidance to identify and prioritize initiatives aimed at fortifying value creation within freight forwarding operations.