A Preliminary Study on the Measurement of Supply Chain Performance: The Determination of Key Performance Indicator (KPI) Weights

Reza Firmansyah; Siti Mahsanah Budijati; Silvia De’e

doi:10.56741/jnest.v3i03.745

A Preliminary Study on the Measurement of Supply Chain Performance: The Determination of Key Performance Indicator (KPI) Weights

Authors

Reza Firmansyah Universitas Ahmad Dahlan
Siti Mahsanah Budijati Universitas Ahmad Dahlan https://orcid.org/0000-0001-6047-5161
Silvia De’e Universitas Ahmad Dahlan

DOI:

https://doi.org/10.56741/jnest.v3i03.745

Keywords:

AHP, SCOR, Supply Chain Performance

Abstract

Supply chain performance measurement is crucial in determining strategies to improve company performance. PT XYZ is an export-scale sweet potato-based food processing company. The obstacle the company often faces is the mismatch in the quantity of raw material delivered from suppliers, resulting in delays in production and fulfillment of demand to consumers. For this reason, it is important to measure the performance of the supply chain, so that the company knows the parts of the supply chain that must be improved. Supply Chain Operations Reference (SCOR) is a method for measuring supply chain performance. Before applying the SCOR method, the first step that needs to be done is determining the Key Performance Indicator (KPI) and its weight. This research aims to determine KPI weights using the Analytical Hierarchy Process (AHP) method, at PT XYZ. The AHP method was chosen because of its ability to provide objective weights based on priorities determined by experts. The results showed that there were 6 KPIs at level 1, 19 KPIs at level 2 which were grouped in 6 dimensions, and 50 KPIs at level 3 which were grouped in 19 dimensions. The KPI determination is adjusted to the SCOR dimensions and the real conditions of the company. Furthermore, based on the AHP method analysis, the weight of each KPI is obtained, and the weight comparison between KPIs is known. The implementation of strategies that focus on the KPIs with the highest weights is expected to improve the overall supply chain performance.

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Author Biographies

Reza Firmansyah, Universitas Ahmad Dahlan

is a final-year student at Ahmad Dahlan University Yogyakarta. During his studies, he gained valuable experience, including joining the Ahmad Dahlan University electric and energy-efficient car team as a design team member, where he was victorious. He also achieved second place in the Uphill Power category and third place in the Acceleration category at the KMLI (Indonesian Electric Car Competition). Furthermore, he participated in the Practicum Assistant Team and was active in regional organizations. (email: rezafirmansyah110303@gmail.com).

Siti Mahsanah Budijati, Universitas Ahmad Dahlan

is affiliated with the Department of Industrial Engineering at Ahmad Dahlan University, Indonesia. Her research interests include Green Supply Chain Management, Reverse Logistics, System Modelling, and Production Planning and Inventory Control. She has published several research papers on topics such as supply chain management, reverse logistics, and system dynamics. Her Scopus profile shows that she has an h-index of 4 and has 37 citations for 35 documents. (email: smbudijati@ie.uad.ac.id).

Silvia De’e, Universitas Ahmad Dahlan

is an Industrial Engineering Fresh Graduate from Ahmad Dahlan University. Her academic background has been enhanced by a range of valuable experiences, including participation in the "International Student Mobility 2023" program at Universiti Teknikal Malaysia Melaka (UTeM). During her tenure at the university, she served as the head of the Kajian Strategis Department of the Industrial Engineering Student Association in 2022. She was also part of the research team of "Hibah Riset Muhammadiyah Batch VII 2023/2024" with the research title "Life Cycle Assessment of Electric Motor Waste Battery Management in Informal Customers". (email: silvia.dee28@gmail.com).

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