Supply Chain Performance Measurement and Improvement for Forging Industry

Abstract

Forging Industry Supply Chain involves various actors and acts as Industry Intermediate providing various products for downstream industrial customers. This study aims to analyze supply chain performance and recommend improvement strategy at forging Industry. This study applied supply chain operation reference (SCOR) and Analytical Hierarchy Process (AHP) to analyze supply chain performance. A SWOT analysis assisted to improve supply chain performance. The data was validated at PT ABC and PT XYZ as two focal company in supply chain operations of forging industry. The results show that the supply chain performance at PT. ABC 99.42% and 99.05% in 2019 and 2020, respectively. PT. XYZ showed supply chain performance score as 96.60% and 97.52% in 2019 and 2020, respectively. This study has succeeded in formulating efforts to improve the supply chain performance, namely: producing quality goods according to domestic market specifications, maintaining good relations with suppliers or outsourcing, improving services using high technology.

Keywords

• forging industry
• supply chain
• performance
• analytical hierarchy process
• strategy