PurposeA traceability system is a key success factor in global food trade, but implementing it in vegetable oil industry is one of the most difficult undertakings in food supply chain management. This study aims to (1) identify typical operational barriers in the implementation of bulk-liquid traceability system in the Indonesian vegetable oil industry by considering the perspective of experts and (2) model the relationship between the barriers structurally in order to improve the reliability of the traceability system.Design/methodology/approachTo do so, data from in-depth interviews with experts were examined by using content analysis. Then the authors used a combination of decision-making trial and evaluation laboratory (DEMATEL), interpretive structural modelling (ISM) and matrice d'impacts croisés multiplication appliqué un classement (MICMAC) to construct the hierarchical model and to cluster the typical barriers based on their driving power and dependence power.FindingsIn total, 20 typical traceability barriers along the internal chain (supplier-input-process-output-customer) were identified. The interrelationships between these barriers were modeled in a hierarchical structure, seeking to answer why it is difficult to implement a traceability system and what actions should be taken to remove these barriers.Practical implicationsThe model can shed light on how to manage barriers in bulk-liquid food commodity industry, especially in the vegetable oil industry. An action map has been proposed to overcome the operational barriers. This model will also help tracing the critical points of the traceability system.Originality/valueCompared to other food commodities, operational barriers in vegetable oil chain has never been studied specifically. In fact, there are many operational aspects that hinder traceability. The Indonesian context entails social, economic and environmental factors as well, so it can inform decision-makers in formulating an action map.
New product development is an important innovation that should be done to meet consumers’ new trends. This paper is prominent as it discusses new product development through the inactive problem perspective in SMEs in Indonesia as a way to explore customers’ expectations, which are often challenging to analyze. The capability to develop a new product based on the inactive problem perspective allows SMEs to become pioneers that possess various competitive advantages, including strong brand awareness. This study included 14 samples of SMEs to represent the characteristics of SMEs in Indonesia between 2016 and 2018. We used the particle swarm optimization approach for the decision making of several SME parameters with the profit maximization function. This paper is the first paper to discuss the relationship between the cost of ideas and production costs in the types of SMEs with an inactive problem perspective in Indonesia to obtain maximum profits by considering various factors that affect the costs and revenue of SMEs. This paper also analyzes the cost used for an idea realization to get maximum profit. This study shows that differences were found in each type of SME, and these difference were related to the amount of funds that were used to explore, realize, and make a profit out of a specific idea.
Dual-Channel Supply Chain (in short DCSC) is a business structure that integrates offline channel and online channels in distributing their products. In DCSC, a consumer may switch easily from one channel to another which can make a conflict between both channels because they have the same potential consumer. This study aims to examine the factors that cause consumers to switch shopping channels in the DCSC structure. Push-Pull-Mooring (PPM) is applied to investigate consumer channel switching behaviour that is implemented in a service company. Push variable includes information searching behaviour, perceived service quality, satisfaction, and perceived price. The pull variable includes switching cost, attitude toward switching, subjective norm. Additionally, mooring variable comprises of alternative attractiveness and responsiveness. The findings indicate that all three variables have a significant effect on switching intention. However, neither of mooring factor on the relationship between push and switching intention nor between pull and switching intention show moderating effects. Partial Least Square-Structural Equation Modelling (PLS-SEM) is applied to analyse survey data from 250 respondents. The result of the interrelationship among variables could be potentially applied in determining operational and tactical strategies to anticipate the volatilities in consumer behaviours.
Traceability system (TS) is a part of a food safety management system to support efficient food recall process. Building a TS for bulk-liquid food industry has been identified as the most difficult task due to its operational characteristics. This paper captures the real phenomenon of TS and food recall in three edible oil industries in Indonesia. Cross-case comparison shows that the TS practices in similar industries may vary. Although, their TS proves to have an effect on their capability to recall, building an excellent TS is costly. Therefore, a cost-benefit model based on a system dynamic approach is proposed to assist the industry in setting the traceability improvement program. The cost-benefit model considers the influence of traceability dimensions on profit and recall cost. The cost-benefit conceptual model is presented in a causal loop diagram. Then, the stock flow diagram runs the simulation improvement scenarios in real case. Scenario 3 is chosen as the best short-term TS improvement program.
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