Optimizing Logistics Capability: Integrating Human Resources, Technology, and Cooperative Efforts

The logistics sector in Indonesia is grappling with significant challenges, marked by high logistics costs and a decreasing Logistics Performance Index (LPI), which dropped from 46th in 2018 to 61st in 2023. This study aims to fill the gap in the existing literature by exploring human resources, technological resources, and collaboration as interconnected factors that collectively influence the capability of logistics firms. The research highlights the critical role of effective human resource management in enhancing logistics capabilities, as skilled and well-trained personnel contribute significantly to operational efficiency. Additionally, the study underscores the importance of leveraging advanced technological resources, such as automation and data analytics, to improve process efficiency and decision-making. While collaboration among logistics firms, suppliers, and customers is identified as a vital component, the findings indicate that it tends to have a comparatively lower impact on logistics capability. Nevertheless, fostering effective collaboration can still lead to improved coordination and information flow within the supply chain. Overall, the insights from this study suggest that logistics service providers in Indonesia should prioritize the development of human capital, invest in modern technologies, and strengthen collaborative partnerships to enhance their capabilities and competitiveness in a rapidly evolving market.