PT. Gema Parahyangan Plastik merupakan produsen pipa PVC yang berdomisili di Bandung. Didirikan tahun 1992 dengan lebih dari 100 karyawan, perusahaan berkomitmen untuk terus meningkatkan kualitasnya termasuk dalam hal distribusi. Konsumen dari perusahaan tersebar di Jawa Barat khususnya bagian timur. Sistem distribusi saat ini menyebabkan waktu tunggu konsumen dari luar kota Bandung yang cukup tinggi, mencapai 1.218 hari untuk 332 order selama bulan Juni 2011. Walaupun tujuan penelitian ini adalah perbaikan sistem distribusi barang untuk meminimalisasi waktu tunggu konsumen, namun tetap mempertimbangkan aspek biaya termasuk goodwill cost dan opportunity loss. Ada beberapa hal yang disinyalir berpotensi menjadi penyebab keterlambatan pendistribusian, dengan penggunaan Failure Mode and Effect Analysis (FMEA) terpilih kegagalan yang akan diteliti yaitu belum adanya rencana pengiriman ke daerah 0bersangkutan. Solusi perbaikan yang diberikan berupa pembuatan dua alternatif kelompok daerah pengiriman menggunakan metode Least Cost dan Nearest Neighbor, didahului dengan penetapan kapasitas minimum dan maksimum muatan truk. Pemilihan metode terbaik dilakukan dengan prinsip Analytical Hierarchy Process (AHP). Berdasarkan tujuan penelitian, metode Least Cost dipilih sebagai metode pengelompokkan daerah tujuan terbaik karena dapat mengurangi waktu tunggu konsumen 10,59%, penurunan pengiriman order terlambat hingga 43,75% dan waktu keterlambatan 46,29%. / PT. Gema Parahyangan Plastik (GPP) is a PVC Pipe Manufacturer located in Bandung, which was established on 1992 with more than 100 employees. Most of the customers are distributed primarily in West Java especially on the east side. One of company’s commitments is to increase the quality in all aspects in order to reach customers’ satisfaction. Among all available aspects, the main problem that has to be focused on is the distribution system. There is a significant time delay for customers outside Bandung, 1,218 days for 332 orders during June 2011. Therefore, this research was done to improve distribution system and minimize time delay by still considering cost aspect, including the goodwill cost and the opportunity loss. The utilization of Failure Mode and Effect Analysis (FMEA) method has demonstrates that the main factor of time delay is caused by there has no delivery plan to that area yet. This caused by the truck has not met the minimum load capacity for delivering. Solution offered is by applying Least Cost and Nearest Neighbor method to create two groups of customers’ region, assuming certain numbers of minimum capacity and maximum load truck. The Selection of best method was obtained by applying the Analytical Hierarchy Process (AHP). As the aim of this research is to reduce waiting time, Least Cost Method was then selected as the best route grouping method. This method will reduce consumer waiting time for 10,59% with 43,75% reduction in late order delivery. Therefore, overall time delay will be decreased up to 46,29%.