SUPPLY CHAIN PERFORMANCE MEASUREMENT AS A RESPONSE TO COVID-19 PANDEMIC IN CLOTHING INDUSTRY

• Main Author: Rayhan Fakhira, Athaya
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64367
• Institution: Institut Teknologi Bandung

The ongoing Covid-19 pandemic affected many aspects of life, including business. The increase in demand for medical goods, namely masks, caused a surge in the number of suppliers of masks, especially fabric masks, and influenced business competition in the clothing industry. The competition can be won by increasing the company's competitive advantage in the form of supply chain effectiveness and efficiency. To streamline the improvement, it is necessary to measure supply chain performance of the company. The purpose of measuring supply chain performance is to find out the current position of the supply chain when compared to the ideal supply chain performance desired, to know the deviations or gaps, and to know the aspects of the supply chain that require improvement. This performance measurement is carried out by the SCOR method, which is one of the supply chain operations models that is able to integrates three main elements in management, which are business process reengineering (BPR), benchmarking, and best practice analysis (BPA) into the supply chain cross-functional framework. This research was carried out in one clothier who currently produces fabric masks, named Cahyati Latief Production. From this study, researchers obtained: (1) Structure of the supply chain of fabric mask in Cahyati Latief Production; (2) Calculation of level 1 performance metrics, which are perfect order fulfillment (POF) = 64,4%, order fulfillment cycle time (OFCT) = 11 days, supply chain flexibility (SCF) = 1 day, cost of goods sold (COGS) = 85%, and cash-to-cash cycle time (CTCCT) = 15 days.; (3) The calculation of the opportunity value calculated using the lost opportunity measure (LOM) is the POF of IDR 1,086,682.00 and COGS of IDR 421,514.00; (4) Mapping level 2 shows Cahyati Latief Production has the lowest performance in the deliver process; (5) Mapping level 3 shows in detail the deliver process in Cahyati Latief Production, which shows that the lack of performance in the deliver process is due to the process of checking the goods before delivering. The overall performance of Supply Chain Management in Cahyati Latief Production is not good enough in its application, so an action of improvement of supply chain performance needs to be done. The researcher suggests that the improvement in supply chain is carried out must be prioritized in the lowest performance process, which is deliver, especially in the packing process before shipping. Recommendations from researchers are in the form of reducing the work hours of employees, placing specific workers in the packing division before delivery, and or increasing the number of workers.