Supply chain efficiency of red chilies in the production center of Sleman Indonesia based on performance measurement system

Abstract

This study aims to describe the red chili supply chain in the production center of Sleman Regency and examine its efficiency using the performance measurement system (PMS). The period of secondary data from 2016 to 2020 in this study was employed on the grounds of time before and during the COVID-19 pandemic. It was based on Presidential Decree No. 11 of 2020 concerning the determination of the Coronavirus Disease 2019 Public Health Emergency in Indonesia on March 31, 2020, designating COVID-19 as a pandemic. The sampling for this study began in Pakem District and proceeded in phases to Purwobinangun Village. Moreover, 61 respondents were determined through snowball sampling from farmers to consumers in Sleman Regency. The red chili supply chain was evaluated descriptively, and its efficiency was analyzed using the PMS indicators, encompassing production cost, profit, return on investment (ROI), and transaction cost. The findings unveiled that the red chili supply chain consisted of five chains with six actors: (1) Farmers – Auction Market – Collecting Traders – Retailers – Consumers; (2) Farmers – Auction Market – Intermediaries – Collecting Traders – Retailers – Consumers; (3) Farmers – Intermediaries – Collecting Traders – Retailers – Consumers; (4) Farmers – Intermediaries – Retailers – Consumers; and (5) Farmers – Retailers – Consumers. Regarding the efficiency of the five supply chains, Chain 2 obtained the highest profit and ROI, while Chain 5 possessed the lowest production and transaction cost, making them the most efficient ones.

Keywords

• red chili
• supply chain
• performance measurement system
• covid-19 pandemic