Rice is a vital commodity in Indonesia because it is the main staple food for most Indonesian people. Balancing supply and demand of rice in Indonesia is complex and has possibly led to polemics, even though the production of rice in Indonesia tends to increase. An analysis of the supply-demand for rice commodity is, therefore, necessary as an effort to improve the national rice condition along with the logistics and supply chain point of view. This study aims to analyze the supply chain risk management of rice to provide recommendations on improving rice supply chain performance on each tier. This study was undertaken at Demak and Sleman Districts, Indonesia. In-depth interviews were used to enrich the information from the respondents along the supply chain. In this study, tiers on the supply chain of rice mainly consists of farmers, collectors who also acts as traders, and retailers. Meanwhile, the role of government is represented by The Indonesia Logistics Bureau (BULOG). The ISO 31000:2009 standard for analyzing the risk in each tier along the supply chain. Based on the risk analysis, on-farm activity plays a vital role in transferring risk along the supply chain in terms of quality and quantity. Risk mitigation of each tier was explored in this study.
The problems associated with rice production in Indonesia appear very complicated, due to poor management of the sufficient national rice stock and various unfavorable public policies. Recently, government’s directives on rice importation instigated polemics from several interests, as a result of inappropriate decisions on general rice production, with possible yearly increment. Therefore, there is need to embrace strategy development to balance demand and supply. The purpose of this study was to analyze the rice supply chain in Demak and Sukoharjo, Central Java Province, in an effort to provide effective and collaborative distribution policies at individual levels. In addition, in-depth interviews were conducted for 98 respondents in a bid to acquire relevant and current information for the conceptual framework development. Furthermore, sampling methodologies, termed purposive and snowballing, were applied, followed by the preparation of interview guidelines. The results showed the farmers obtained the lowest revenue margin among other tiers, while several technical challenges were also identified. Consequently, the activities of middlemen with excessive dominant roles in market price determination, were overemphasized, leading to an inefficient supply chain. Meanwhile, government’s position through the Indonesia Logistics Bureau (BULOG) is assumed to be vulnerable in the control of direct supply from farmers or collectors. Based on this study, intense comprehension of rice supply chain was achieved, with further provision of collaborative strategies towards promoting the balance of demand and supply.
PurposeDetermining vulnerability and resilience is necessary to develop sustainable agribusiness. The purpose of this study is to clarify and understand the current condition and problems in the tea supply chain and to develop a framework on how to build a sustainable and resilient tea supply chain.Design/methodology/approachThis study is a case study analysis which develops an integrated framework to build a resilient tea supply chain. It evaluates and extends the current knowledge of Javanese tea by applying business process analysis to understand the situation.FindingsThis paper develops an integrated and conceptual framework on how to build resilient supply chain by considering five broad factors: vulnerability analysis, assessment of assets, supply chain collaboration, control mechanism from government and outcome.Research limitations/implicationsThe framework provides a conceptual view but limited to field surveys in Central Java Province. This study could increase the general understanding of tea supply chain in Indonesia and its major problems and challenges.Practical implicationsThe framework also highlights different stakeholder's organizational constraints and issues, especially during the COVID-19 pandemic.Originality/valueThe business process analysis and conceptual framework offer an expanded and in-depth explanation on how organizations respond to the changing conditions, especially during the COVID-19 pandemic.
Today fierce competition has highly enforced the company to focus more on their core competency and has encouraged them to strengthen competitive advantage. This condition reinforces the role of logistics service providers (LSP) to help company run their supporting activities. This research aims to identify the characteristics of LSP and to analyze their role in the distribution channel of imported perishable and processed food products in Indonesia. Convenience sampling was employed as sampling methodology and in-depth interview was used to collect detail information from respondents including private stakeholders, port authorities, freight forwarder association and retailers. The research results show that the characteristics and size of the company affects the involvement of LSP in the distribution channel. The roles of freight forwarders (FF) extensively include pre-customs clearance, customs clearance and post-customs clearance. Furthermore, the role of FF considerably contributes to the ease of arranging international shipment. The role of distributor plays vital role in the tracking and tracing system and timeliness of distribution channel. Meanwhile, the role of FF and transporter is fairly low in encouraging track-able and traceable distribution channel. Further improvements are needed to encourage better distribution channel performance.
National logistics system in Indonesia can be categorized as inefficient logistics system due to current number of non-value added (NVA) activities. The unreliable National logistics system and the complexity of distribution system are the big obstacles. This study aims to analyze the value and to propose recommendation for further improvement of National distribution system for imported product. This study employed convenience sampling through in-depth interview to analyze the activity in freight forwarder (FF), distributor and retailer. To demonstrate and analyze the activity process in each party, Process Activity Mapping (PAM) was used as a tool. The study results showed that the delivery speed in Jakarta (8.4 min/km) is slower than that of Surabaya (6.6 min/km). The government support through creating adequate infrastructure, good bureaucracy system and good collaboration directly affects the activities of FF, distributor and retailer. Improving FF performance in a timely and reliable manner is required to reduce errors that may occur. Moreover, encouraging the practice of cold chain management is also necessary in distributing the product throughout Indonesia. The pull strategy can be chosen by retailer to eliminate storage activity. Meanwhile, the use of information technology (IT) system is essential to encourage better inventory management, database management and sharing information in distributor and retailer stage.
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