Economic growth has contributed significantly to the growth of the logistics industry in Indonesia. Nevertheless, the industry is fragmented as a result of large numbers of medium and small-scale players, which creates a situation of intense competition, even for large-scale players. Therefore, customers tend to make choices based on pricing so that the Indonesian logistics industry players, as a consequence, tend to focus more on efforts to offer economical prices than creating value-added services (value added service). Having survived the recent global financial crisis and the subsequent world-wide economic downturn, Indonesia has maintained a vibrant economy with an annual GDP growth of over 6 per cent since 2003. Recently, the Indonesian government has identified the logistics industry as a key sector for further economic growth. But lack of competencies and skills amongst managers of the logistics providers has become one of the major problems for the Indonesian logistics industry. The objective of this study is to identify operations managers’ competency requirements and develop a comprehensive model of competency for operations managers in the logistics sector. Main survey consisting of a two-part questionnaire was developed and data was collected from 165 of Indonesia’s third party logistics (3PL) firms who belong to both local and multinational firm categories. To assess the criticality of identified competencies based on an extended literature review, data were analysed using multi-criteria decision-making approach called Analytic Hierarchy Process (AHP). The final results suggest that of the fifteen competencies grouped into four dimensions (Logistics Dimension, Management Dimension, Business Dimension and Internet and Communication Technology Dimension) considered in the model, the most important top five are transportation and distribution management (TDM), project management (PM), warehouse and inventory management (WMI), continuous improvement (CI) and leadership (L). This study is limited to the 3PL providers without differentiate them on service and speciality they provided. Therefore, extending study would be more comprehensive to address these particular things in terms of ascertaining the Indonesia’s competency model of operations managers in 3PL providers. It is anticipated that these findings will be useful for the future development of the Indonesian logistics sector not only for the government as policy-maker, but also for business entities and other related organisations in their efforts to create comprehensive and complete curricula for training and education purposes. Furthermore, the findings and suggestions could be used as a practical and generic approach to assist Indonesia’s competent logisticians or operations managers in the third party logistics sector to face the competitions of the future.
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