OPTIMIZING TOTAL VALUE CHAIN MARGIN IN SHRIMP COMMODITY THROUGH IMPROVEMENT OF SUPPLY CHAIN DESIGN

• Main Author: Wijaya, Ridwan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/85732
• Institution: Institut Teknologi Bandung

The research focuses on the disparity between the export price of frozen vannamei shrimp and the prevailing market pricing (the gap around $1.3 - $2.4), which is mostly influenced by the products offered by Indian and Ecuadorian enterprises in 2023. Consequently, the company's insufficient competitiveness hinders its ability to effectively participate in the American shrimp export market. The research aims to assess the components of the commodity value chain that impact competitiveness, cost reduction, and profit growth. Subsequently, it is employed as a substance for suggesting tactics and enhancements to the design of the supply chain. The research employed the Delphi qualitative approach, which involved conducting expert interviews utilizing Porter's theory of industry analysis and value chain, along with the application of the VRIN model for competitive advantage measurement. The research findings revealed that there are seven factors that have an impact on competitiveness: Upstream strategy integration, export license certification, cultivation technical support, digitalization of supply chain and traceability, delivery of fresh shrimp within 10 hours, downstream integration strategy, and anticipation of price volatility. There are three high contribution cost structures in the supply chain: the cost of acquiring raw materials, the cost of manufacturing, and the potential margin loss in downstream distribution. Supply chain design enhancements were implemented in four different scenarios based on the specific conditions of the region in Indonesia. Consequently, the proposed design can be a decrease in costs of around 21-35% and an increase in profit margins of 8-22%. Scenario four is the supply chain design that yields the most optimum outcomes. The scenario is to integrate the self-development of shrimp farming with the cultivation contract system in order to achieve cost-effective and high-quality shrimp supply. This involves implementing cultivation technology to enhance productivity, ensuring that fresh shrimp yields are promptly delivered to our own factory within 10 hours, and directly sending frozen shrimp products to affiliated companies for distribution to consumers.