Performance Measurement of Sustainable Supply Chain Management (SSCM) in Newly Established Cocoa-Processing Company in Southeast Sulawesi, Indonesia

8 Pages Posted: 14 Jan 2017  

Silma Luthfika Harnanda

University of Birmingham - School of Mechanical Engineering

Date Written: November 30, 2016

Abstract

This research aimed to determine the sustainability of supply chain management in Cocoa-Processing company in Southeast Sulawesi, Indonesia. Southeast Sulawesi is one of the biggest produces in Indonesia, and this newly established company planned to utilise this valuable resources, cocoa plantation. The company produces intermediate products of cocoa: liquor, butter, cake, and powder. Even the company is in the early stages of business, it is trying to apply sustainability to the supply chain. The company see this necessary as a competitive advantage in the industry. To evaluate the applied sustainable supply chain, a performance measurement is being done to see how well sustainable supply chain run is. A Sustainability Balanced Scorecard (SBSC) is used to measure. Key Performance Indicators (KPI) are designed from brainstorming with the company and elaboration from company’s vision and mission. The structure of SBSC for SSCM was the modification of initial balanced scorecard by adding Suppliers perspective and Non-market perspective. All KPIs is then pair-compared to get the prioritised weighted score using Analytical Hierarchy Process (AHP). KPI scores are calculated by using “Target/ Actual” scoring system. The results showed that the company’s SSCM is not well performed. Over half of the KPIs are under performance. Continues improvement is needed to increase company’s SSCM performance and keep the sustainability of cocoa production.

Keywords: Cocoa, KPI, SBSC, SSCM

Suggested Citation

Harnanda, Silma Luthfika, Performance Measurement of Sustainable Supply Chain Management (SSCM) in Newly Established Cocoa-Processing Company in Southeast Sulawesi, Indonesia (November 30, 2016). OIDA International Journal of Sustainable Development, Vol. 09, No. 11, pp. 39-46, 2016. Available at SSRN: https://ssrn.com/abstract=2898368

Silma Luthfika Harnanda (Contact Author)

University of Birmingham - School of Mechanical Engineering ( email )

Edgbaston, Birmingham B15 2TT
United Kingdom

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