MODEL ENHANCEMENT OF SUPPLIER DEVELOPMENT IN PT X

• Main Author: Hastoro Sapardyanto, Yui
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66764
• Institution: Institut Teknologi Bandung

Supplier, as part of supply chain plays a vital role to ensure the availability of resources that are required by the manufacturing company in securing their business. Supplier development activity can be seen as an effort that manufacturing company do in order to improve their supplier performance, especially in ensuring their supply chain’s continuity. Based on the previous researches about buyer-supplier, there are 3 gaps found in the research of supplier development. First, there is no research that comprehensively examined the impact of supplier development towards the improvement of supplier performance and purchasing performance, with or without the mediating role of buyer-supplier relationship, from both buyer and also supplier perspectives, as one entity. Second, there is no specific study about the impact of supplier performance improvement towards purchasing performance improvement. Third, there is no specific research about the impact of supplier development and buyer – supplier relationship using the actual indicators (quantitative data), that has been implemented by the manufacturing company towards their suppliers. The research in this master’s Thesis was conducted to enhance the model of supplier development, with or without the mediating role of buyer–supplier relationship, and its effect towards supplier performance & purchasing performance improvement. The purpose of this Thesis is expected to give the explanation about the role of buyer – supplier relationship and its indicators that could give significant impact towards the improvement of supplier performance and purchasing performance in PT. X. The research was conducted for the automotive industry, PT. X, as buyer and the companies that supply the automotive component, as supplier of PT. X. The analysis of the model research will use Partial Least Squares – Structural Equation Modeling (PLS-SEM), with 52 respondents from the automotive component company (tier 1 supplier of PT. X) and 31 respondents from PT. X (buyer). This research also use interview that involves Top Management of supplier and PT. X to sharpen the result analysis of model development. The result of this research shown that supplier development activity gives significant impact towards supplier performance. Also can be concluded that supplier performance also has significant impact towards purchasing performance. However, the mediating role of buyer – supplier relationship still cannot be proven its impact towards supplier performance & purchasing performance. Moreover from the interview result, this role cannot be generalized in all suppliers. The mediating role also tested using Multi-Group Analysis method, and it has proven that supplier’s self-reliance condition could give significant impact of buyersupplier relationship towards its role as mediator in improving supplier performance.