Performance Evaluation of Supply Chain Using Scor Model The Case of PT. Yuasa Indonesia

Abstract

Supply Chain Management (SCM) is the process of planning, implementing, and controlling the operations of the supply chain aims at satisfying customer requirements efficiently. SCM has become increasingly important in a global economy and has received a tremendous attention from both industries and researchers in recent years. In the face of growing complexity of the global supply chains, more business entities are realizing that SCM has become a key strategic aspect of their business. It is believed that efficient and effective supply chain management can assists an organization in getting the right goods and services to the place needed at the right time, in the proper quantity and at acceptable cost. However, until recently, due to the complexity of supply chain system, it is very difficult to measure its performance. This paper focuses on the performance measurement of supply chain by addressing on these following questions: Which supply chain performance measures are used in practice? How was the metric evaluation implemented? What were the problems that occurred in the performance measurement of a supply chain? To deal with these questions, Supply Chain Operation Reference (SCOR) Model is used to measure the supply chain performance. It provides a framework for evaluating the performance of supply chain management in the corporation that comprises of five main processes namely plan, source, make, deliver and return. The SCOR model contains measures for operational control and until recently is recognized as the most comprehensive approach for the evaluation of supply chain operation. The empirical results of the measurement of supply chain performance with the case of PT Yuasa Indonesia indicates that the company has achieved the best in their class for reliability (delivery performance, fill rate) and warranty return cost. Two attributes i.e. production flexibility and value added employees are still at medium performance and the rest attributes have the advantages performance.