Developing supply chain readiness measurement tool for the manufacturing industrial estates

Abstract

Industrial estate (IE) is where manufacturing industry activities are concentrated. In this, the supply chain plays an important role that can affect the productivity and operational efficiency of IE. Currently, the existing measuring tools of the supply chain are limited to evaluating supply chain readiness (SCR) only for a single company. While for IE, which comprises many companies with varying kinds of products, the existing SCR is not suitable as it is a more complex system. This study aimed to develop a new SCR measurement tool suitable for manufacturing IE. It was developed using a single manufacturing company's existing (SCRL) tool. In this study, qualitative and quantitative analyses were carried out. First, supply chain literature was reviewed to identify each measuring instrument's strengths and weaknesses. Then, a descriptive analysis was performed to identify the parameters measured in each existing SCRL tool. Measurement parameters in the IE were also identified. A matrix diagram was built to identify and visualize the relationship between the two. Third, an SCR measurement tool for IE readiness was developed by combining the existing system methodologies with the concept of IE. Spreadsheet-based software from Microsoft Excel was designed to make it easier for measuring readiness. Finally, validation was carried out by a quantitative analysis using SCM data from the IE in West Java, Indonesia. An SCR measurement tool fit for manufacturing IE (IE-SCRL) was proposed, equipped with a spreadsheet-based software design to measure it. In addition, the results of validating the effectiveness and efficiency of SCM of IE are also presented.

Keywords

• Application
• Company
• Industrial estate
• Readiness level
• Supply chain readiness
• SCM