ABSTRACT
In Indonesia, the demand for the sauce for food complement is higher than the supply ability availability. With the expected population growth, this gap creates a challenge and opportunity for the food industry. The main obstacle lies in supplier fulfillment. Therefore, the assessment of supplier performance is one solution to fulfill market demand and increase the sales and service level. In this study, the assessment for a supplier performance is determined using five attributes in the SCOR model: reliability, agility, responsiveness, cost, and asset. This study aims to define and select the criteria of assessing supplier performance using early stages in Multi-Criteria Decision-Making methodology to measure supplier performance. The study will start by systemically understanding the problem using actor analysis and a system diagram to illustrate the systemic properties of the problem. Actor analysis is essential due to the nature of the issues with multi-actor conditions. The result is shown as a model conceptual diagram with the relevant actors and the factors that influence the system, especially in the food industry.
Supplemental Material
Available for Download
- S. Indonesia, "Population of Indonesia by Province 1971, 1980, 1990, 1995, 2000 and 2010,” 2011.Google Scholar
- S. I. Indonesia, The Ministry of National Development Planning, "Indonesia Population Projection 2010-2035," Statistics Indonesia (BPS) & The Ministry of National Development Planning (BAPPENAS), 9790646062, 2013.Google Scholar
- S. B. Modi and V. A. Mabert, "Supplier development: Improving supplier performance through knowledge transfer," Journal of operations management, vol. 25, no. 1, pp. 42-64, 2007, doi: https://doi.org/10.1016/j.jom.2006.02.001.Google ScholarDigital Library
- L. De Boer, E. Labro, and P. Morlacchi, "A review of methods supporting supplier selection," European journal of purchasing & supply management, vol. 7, no. 2, pp. 75-89, 2001.Google Scholar
- A. Amid, S. Ghodsypour, and C. O'Brien, "A weighted max–min model for fuzzy multi-objective supplier selection in a supply chain," International Journal of Production Economics, vol. 131, no. 1, pp. 139-145, 2011, doi: https://doi.org/10.1016/j.ijpe.2010.04.044.Google ScholarCross Ref
- X. Chen, J. Luo, X. Wang, and D. Yang, "Supply chain risk management considering put options and service level constraints," Computers & Industrial Engineering, vol. 140, p. 106228, 2020, doi: https://doi.org/10.1016/j.cie.2019.106228.Google ScholarDigital Library
- H.-J. Shyur and H.-S. Shih, "A hybrid MCDM model for strategic vendor selection," Mathematical and computer modelling, vol. 44, no. 7-8, pp. 749-761, 2006, doi: https://doi.org/10.1016/j.mcm.2005.04.018.Google ScholarDigital Library
- E. A. Frej, L. R. P. Roselli, J. Araújo de Almeida, and A. T. de Almeida, "A multicriteria decision model for supplier selection in a food industry based on FITradeoff method," Mathematical Problems in Engineering, vol. 2017, 2017, doi: https://doi.org/10.1155/2017/4541914.Google Scholar
- A. R. Linnemann, E. M. Hendrix, R. Apaiah, and T. A. van Boekel, "Food chain design using multi criteria decision making, an approach to complex design issues," NJAS-Wageningen Journal of Life Sciences, vol. 72, pp. 13-21, 2015, doi: https://doi.org/10.1016/j.njas.2014.10.002.Google ScholarCross Ref
- G. M. Duman, O. Tozanli, E. Kongar, and S. M. Gupta, "A holistic approach for performance evaluation using quantitative and qualitative data: a food industry case study," Expert systems with applications, vol. 81, pp. 410-422, 2017, doi: https://doi.org/10.1016/j.eswa.2017.03.070Google ScholarDigital Library
- H. de Dienes Alicia, M. G. M. Mónica, and J. A. M. Jorge, "Application of Multi-Criteria Decision Methods (MCDM) for the development of functional food products in Venezuela," Procedia Food Science, vol. 1, pp. 1560-1567, 2011, doi: https://doi.org/10.1016/j.profoo.2011.09.231.Google ScholarCross Ref
- M. Sufiyan, A. Haleem, S. Khan, and M. I. Khan, "Evaluating food supply chain performance using hybrid fuzzy MCDM technique," Sustainable Production and Consumption, vol. 20, pp. 40-57, 2019, doi: https://doi.org/10.1016/j.spc.2019.03.004.Google ScholarCross Ref
- Ö. F. Gürcan, İ. Yazıcı, Ö. F. Beyca, Ç. Y. Arslan, and F. Eldemir, "Third party logistics (3PL) provider selection with AHP application," Procedia-Social and Behavioral Sciences, vol. 235, pp. 226-234, 2016, doi: https://doi.org/10.1016/j.sbspro.2016.11.018.Google ScholarCross Ref
- G.-H. Tzeng and J.-J. Huang, Multiple attribute decision making: methods and applications. CRC press, 2011.Google ScholarCross Ref
- S. Ballı and S. Korukoğlu, "Operating system selection using fuzzy AHP and TOPSIS methods," Mathematical and Computational Applications, vol. 14, no. 2, pp. 119-130, 2009.Google ScholarCross Ref
- Y.-D. Hwang, Y.-C. Lin, and J. Lyu Jr, "The performance evaluation of SCOR sourcing process—The case study of Taiwan's TFT-LCD industry," International Journal of Production Economics, vol. 115, no. 2, pp. 411-423, 2008, doi: https://doi.org/10.1016/j.ijpe.2007.09.014.Google ScholarCross Ref
- B. Enserink, J. Kwakkel, P. Bots, L. Hermans, W. Thissen, and J. Koppenjan, Policy analysis of multi-actor systems. Eleven International Publ., 2010.Google Scholar
- W. A. Thissen and W. E. Walker, Public policy analysis. Springer, 2013.Google ScholarCross Ref
- S. COUNCIL, "Supply Chain Operations Reference Model-Revision 11.0. 2012," Available At:. Accessed February, vol. 21, 2013.Google Scholar
- S. Aly and I. Vrana, "Evaluating the knowledge, relevance and experience of expert decision makers utilizing the Fuzzy-AHP," Agricultural Economics, vol. 54, no. 11, pp. 529-535, 2008.Google Scholar
- C.-N. Wang, V. T. H. Viet, T. P. Ho, V. T. Nguyen, and V. T. Nguyen, "Multi-Criteria Decision Model for the Selection of Suppliers in the Textile Industry," Symmetry, vol. 12, no. 6, p. 979, 2020, doi: https://doi.org/10.3390/sym12060979.Google ScholarCross Ref
- F. R. Lima-Junior and L. C. R. Carpinetti, "Combining SCOR® model and fuzzy TOPSIS for supplier evaluation and management," International Journal of Production Economics, vol. 174, pp. 128-141, 2016, doi: http://dx.doi.org/10.1016/j.ijpe.2016.01.023Google ScholarCross Ref
- H. Taghizadeh and E. Hafezi, "The investigation of supply chain's reliability measure: a case study," Journal of Industrial Engineering International, vol. 8, no. 1, pp. 1-10, 2012.Google ScholarCross Ref
- A. Konys, "Green supplier selection criteria: from a literature review to a comprehensive knowledge base," Sustainability, vol. 11, no. 15, p. 4208, 2019, doi: https://doi.org/10.3390/su11154208.Google ScholarCross Ref
- S. Sudaryanto and R. Bahri, "Performance evaluation of supply chain using SCOR model: the case of Pt. Yuasa, Indonesia," in Proceeding, International Seminar on Industrial Engineering and Management, 2007.Google Scholar
- J. Um, "Improving supply chain flexibility and agility through variety management," The International Journal of Logistics Management, 2017, doi: https://doi.org/10.1108/IJLM-07-2015-0113.Google Scholar
- D. Eckstein, M. Goellner, C. Blome, and M. Henke, "The performance impact of supply chain agility and supply chain adaptability: the moderating effect of product complexity," International Journal of Production Research, vol. 53, no. 10, pp. 3028-3046, 2015.Google ScholarCross Ref
- R. Dubey, N. Altay, A. Gunasekaran, C. Blome, T. Papadopoulos, and S. J. Childe, "Supply chain agility, adaptability and alignment," International Journal of Operations & Production Management, 2018, doi: https://doi.org/10.1108/IJOPM-04-2016-0173.Google Scholar
- W. Ho, X. Xu, and P. K. Dey, "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of operational research, vol. 202, no. 1, pp. 16-24, 2010, doi: https://doi.org/10.1016/j.ejor.2009.05.009.Google ScholarCross Ref
- T. E. Erkan and B. Ugur, "Supply chain performance measurement: a case study about applicability of SCOR model in a manufacturing industry firm," International Journal of Business and Management Studies, vol. 3, no. 1, pp. 381-390, 2011.Google Scholar
Index Terms
- Criteria Identification for Supplier Performance Assessment in a Food Industry to Support Improvement Strategy Prioritization
Recommendations
Supplier's strategy: align with the dominant entrant retailer or the vulnerable incumbent retailer?
The emergence and rapid development of large-sized retail outlets creates opportunities for dominant retailers to align with the businesses in the supply chain, in which they have previously never been involved. When facing a vulnerable incumbent ...
Supplier–supplier relationships in buyer–supplier–supplier triads: Implications for supplier performance
AbstractA growing number of studies and evidence from industries suggest that, besides managing the relationship with its suppliers, a buyer needs to proactively manage the relationships between those suppliers. In a buyer–supplier–supplier relationship ...
A Proposed Supplier Segmentation Criteria in Indonesian Manufacturing Industry
APCORISE '20: Proceedings of the 3rd Asia Pacific Conference on Research in Industrial and Systems EngineeringThe supplier management relationship is one of the most crucial supply chain-related activities for most firms working with multiple suppliers. Purchasing and supply management significant influence on the competitive advantages of a buying company. ...
Comments