APPLICATION OF SUPPLY CHAIN MANAGEMENT PROCESS ON BUSINESS PERFORMANCE (Case Study on Roti-Qu bakery in Batang)

Anindya Putri Utami, Amie Kusumawardhani

Abstract

Competitiveness in the field of production and service is very visible with many companies flocking to create a product with new innovations so as to produce effective and efficient products by paying attention to the company's supply chain flow. Roti-Qu in Batang is one of the companies in the form of a CV business entity that produces bread which has produced 50 branches spread over 400 employees, this company is well aware of supply chain management.
This study uses a qualitative approach, with data collection through field observations, interviews and documentation. With regard to research on supply chain management, this research was conducted on the object of a bakery, namely Roti-Qu in Batang Regency, precisely in Sambong Village with the research subject being the owner of Roti-Qu, the Procurement Section / Warehouse of Roti-Qu and the Production Division of Roti-Qu.
In the application of supply chain management, it was found that the relationship with the supplier had a positive and significant influence on the material flow because the owner and the warehouse department were able to solve the problems that occurred. Relationships with customers are considered to have a positive effect on material flow. Sharing information looks very risky on any information obtained by each division. However, it was found that information sharing had a positive effect on material flow because, according to a statement from the warehouse and production, Roti-Qu solved the problem by reconfirming the material orders needed by the warehouse, production and even branches. Communicate all problems in detail. With the smooth flow of materials influenced by supplier relationships, customer relations and information sharing have a positive impact on business performance at Roti-Qu. Business performance is seen from financial and non-financial perspectives. The results showed that it had a positive effect on job satisfaction. However, for financial business performance, fluctuating sales were found due to the Covid-19 pandemic.
The policy implication in this research is that the procurement department handles the supply chain quite well but still requires trust in overcoming recurring problems, business people must make the latest innovations to develop the company, make good use of marketing media, place warehouses closer to areas full of branches. Roti-Qu, job satisfaction is quite good but still requires openness.

Keywords : Supply Chain Management, Relationships with suppliers, Relationships with customers, Information sharing, Business performance

Full Text:

PDF

References

Bigliardi, B., & Bottani, E. (2010). Performance measurement in the food supply chain : a balanced scorecard approach. Facilities, 28(5–6), 249–260. https://doi.org/10.1108/02632771011031493

Bourlakis, M., Maglaras, G., & Fotopoulos, C. (2012). Creating a "best value supply chain"? Empirical evidence from the Greek food chain. International Journal of Logistics Management, 23(3), 360–382. https://doi.org/10.1108/09574091211289228

Haber, S., & Reichel, A. (2005). Identifying performance measures of small ventures - The case of the tourism industry. Journal of Small Business Management, 43(3), 257–286. https://doi.org/10.1111/j.1540-627X.2005.00137.x

Jie, F., & Gengatharen, D. (2019). Australian food retail supply chain analysis. Business Process Management Journal, 25(2), 271–287. https://doi.org/10.1108/BPMJ-03-2017-0065

Li, S., Ragu-Nathan, B., Ragu-Nathan, TS, & Subba Rao, S. (2006). The impact of supply chain management practices on competitive advantage and organizational performance. Omega, 34(2), 107–124. https://doi.org/10.1016/j.omega.2004.08.002

Lorentz, H., Töyli, J., Solakivi, T., & Ojala, L. (2013). Priorities and determinants for supply chain management skills development in manufacturing firms. Supply Chain Management : An International Journal, 18(4), 358–375. https://doi.org/10.1108/SCM-03-2012-0111

Nwokah, NG, & Maclayton, DW (2006). Customer-focus and business performance : The study of food and beverages organizations in Nigeria. Measuring Business Excellence, 10(4), 65–76. https://doi.org/10.1108/13683040610719281

O'Donovan, I., Quinlan, T., & Barry, T. (2012). From farm to fork : Direct supply chain relationships in the hospitality industry in the south east of Ireland. British Food Journal, 114(4), 500–515. https://doi.org/10.1108/00070701211219522

Shokri, A., Oglethorpe, D., & Nabhani, F. (2014). Evaluating sustainability in the UK fast food supply chain : Review of dimensions, awareness and practice. Journal of Manufacturing Technology Management, 25(8), 1224–1244. https://doi.org/10.1108/JMTM-04-2013-0031

Silvestro, R. (2014). Performance topology mapping : Understanding the drivers of performance. International Journal of Production Economics, 156, 269–282. https://doi.org/10.1016/j.ijpe.2014.05.011

Skipworth, H., Godsell, J., Wong, CY, Saghiri, S., & Julien, D. (2015). Supply chain alignment for improved business performance : An empirical study. Supply Chain Management, 20(5), 511–533. https://doi.org/10.1108/SCM-06-2014-0188

Song, H., Turson, R., Ganguly, A., & Yu, K. (2017). Evaluating the effects of supply chain quality management on food firms' performance : The mediating role of food certification and reputation. International Journal of Operations and Production Management, 37(10), 1541–1562. https://doi.org/10.1108/IJOPM-11-2015-0666

Tan, KC, Lyman, SB, & Wisner, JD (2002). Supply chain management : A strategic perspective. International Journal of Operations and Production Management, 22(5–6), 614–631. https://doi.org/10.1108/01443570210427659

Tuominen, T., Kitaygorodskaya, N., & Helo, P. (2009). Benchmarking Russian and Finnish food industry supply chains. Benchmarking, 16(3), 415–431. https://doi.org/10.1108/14635770910961416

Uddin, N. (2017). Inter-organizational relational mechanism on firm performance The case of Australian agri-food industry supply chain. Industrial Management and Data Systems, 117(9), 1934–1953.https://doi.org/10.1108/IMDS-03-2016-0093

Zhong, J., Ma, Y., Tu, Y., & Li, X. (2016). Supply chain quality management: an empirical study. International Journal of Contemporary Hospitality Management, 28(11), 2446–2472. https://doi.org/10.1108/IJCHM-03-2015-0110

Hugo, WMJ, B.-WJA & VBEHB (2011). (nd). No Title. Supply Chain Management: Logistics in Perspective (5rd Edition) Pretoria: Van Schaik.

Refbacks

  • There are currently no refbacks.