THE MEASUREMENT OF SUPPLY CHAIN PERFORMANCE USING SCOR MODEL (CASE STUDY : RTD JUICE MANUFACTURING) Puji Rahayu, Lien Herliani Kusumah Post Graduate School.

Presentasi berjudul: "THE MEASUREMENT OF SUPPLY CHAIN PERFORMANCE USING SCOR MODEL (CASE STUDY : RTD JUICE MANUFACTURING) Puji Rahayu, Lien Herliani Kusumah Post Graduate School."— Transcript presentasi:

1 THE MEASUREMENT OF SUPPLY CHAIN PERFORMANCE USING SCOR MODEL (CASE STUDY : RTD JUICE MANUFACTURING) Puji Rahayu, Lien Herliani Kusumah Post Graduate School of Industrial Technology Mercu Buana University puji.umt16@gmail.com lien.herliani@mercubuana.ac.id

2 OUTLINES  Abstract  Introduction  Theory References  Methodologi Research  Result and Discussion  Conclusion and Future Research

3 ABSTRACT This paper present the need of SME beverage industry to measure their non financial performance as strategic to achieve company growth. With using metric from SCOR model structure and Analytical Hierarchy process (AHP) to rank the priority of performance supply chain will be used as strategy improvement. The aim of this research is give an iniasialization of performance measurement and determine the score of strategic indicator for their supply chain activity. The further research will address supply chain performance from processes framework of SCOR model to give more detail performance in operational supply chain. This paper is expected to provide proof that SCOR model can be used not only for the scope of company with complex supply chain, but also can be used in SME with more simple supply chain.

4 THE CASE COMPANY PT. Amanah Prima Indonesia (PT API) RTD Juice Manufacturing located in Tangerang, Banten, Indonesia with 250 employees one of SME in beverage Industry Produk market share 68% for supply HoReCa all around Indonesia 3.54% for all market share beverage industry category plastic bottle packaging. Brand of Product: TOZA

5 INTRODUCTION 1. Tight Competition in Industrial Juice Supply > Demand 3. Company’s GOAL in 2016 to Growth 16.6% 2. Position PT. API within Similiar Industries To measure focus on PROCESS / OPERATION activity Supply Chain Performance CURRENT MEASUREMENT : FOCUS ONLY FINANCIAL PERFORMANCE Phenomena ?? 3.54% only Captive Market from 1.52B 68% market share HORECA

6 Motivation question Growth goal 16.6%What Strategic? What Measurement of Performance need ? What Tools could applicable?

7 Motivation Growth goal 16.6% Financial Performance Financial Ratio Non Financial Performance ?? Supply Chain Performance To measure focus on PROCESS / OPERATION activity Ratio COGS/Net Sales 2013-2015 >50% SCOR MODEL (as Framework SC) AHP (to calculate priority of Strategic decision)

8 Journals  Kocaoglue et al (2011) COGS is one of performance attribute as Cost aspect in supply chain  Soderberg et al, 2011 Study of Correlation between SCM Maturity and Financial Performance, COGS as one of financial aspect resulted as the highest correlation compare with others aspect financial performance  Gunasekaran, 2004 Supply chain performance measurements must be balanced between financial vs non- financial and management should be classified at the level of strategic, tactical and operational.

9 Objective of the Research Determine SCOR model performance atribut and metric as inisialization of supply chain performance measurement strategically Measure of indicators supply chain and determine priority rank to strategic improvement Analyse Recommend improvement possibility What indicators could measure of Supply Chain?Score indicators of Supply Chain?What is Improvement recommendation ? PROBLEM FORMULATION

10 LITERATURE REVIEW SCM & SCPMSCOR MODEL Analytical Hierarchy Process (AHP) Chopra Meindl, 2004 Holmberg, 2000 Supply Chain CouncilSaaty, 2008 Kocaoglu, 20011

11 METHODOLOGY This research is Case study approach, with quantitative model. Source of data Primer gathering are : Interview technique, Survey, Questioner expert ( 7 expert ). Source of Data Secunder are: Report from related departemen which involve with supply chain activity, internet, literarure, journals. Analysis Stage 1.Calculated data sekunder to perform metric/indicator (POF, OFCT, etc) 2.Normalize and weight of data sekender calculated result 3.Determine Hierarchy structure, using AHP determine priority of kritreria SC (RL, RS, AG, CO, AM) 4.Multiply of weighted indicator and weighted of kriteria SC to have score of performance supply chain. 5.Determine streategy with SCOR card 6.Identify which indikator still under perform 7.Construct recommendation for improvement

12 RESULT AND DISCUSSION 1. Table Result of calculated indicator (POF, OFCT, etc) from data primer 2. Pairwise comparison weighted between Subcriteria (indicator) with consistency index, only for those Criteria has more than one subcrteria. (Agility, Cost, and Aset) 3. Pairwise comparison weighted between Kriteria, with consistency index This Result used to Rank the priority of Supply Chain strategy 4. Supply Chain Scor card to determine strategy and compare between actual measurement to benchmark, and define gap.

13 4. Cont.. Sample of SCOR Card Result RESULT AND DISCUSSION Discussion : Result expected from this reseach is knowing the score of each indicator supply chain performance by SCOR framework level 1. Knowing measurement of supply chain mean knowing the position of company with using benchmark method. And identified which indicator still under perform. Strategy define by using AHP to rank of priority.

14 CONCLUSION AND FUTURE RESEARCH SCOR metric is general language to measure of Supply chain in many types of Industries. SCOR and AHP is the right combination to measure supply chain and decide priority. SCOR hierarchy also more easilty translate to AHP structure. For Further research, company could dig more deeper a usage of SCOR model as a tools to Re-Design, or analyze issues regarding supply chain activities.

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