Performance analysis of supply chain on rice organic agroindustry in Jember District, Indonesia

Abstract

The annual demand for organic rice tends to increase due to attention to a healthy lifestyle. This trend offers businesses a massive opportunity to develop, including those in Jember District East Java. Product expansion without suboptimal productivity in the organic rice agroindustry has made it impossible to meet the required production and consumer demand. Therefore, evaluating supply chain performance and strategies to improve it is necessary. This study aims to analyse the structure and performance of organic rice supply chain activities in Jember District. The study used Supply Chain Operation Reference (SCOR) to evaluate each process in the supply chain. The method aided in grouping the performance of each process into several metrics described with specific attributes and presented in the form of Key Performance Indicators (KPI). In addition, each metric was weighted using the Analytical Hierarchy Process (AHP). The results showed that the supply chain performance of the organic rice agroindustry was 65.97, classified in the“average” category. The strategies to improve these performance indicators are elaborated based on identified problems and discussions with several experts in the organic rice agroindustry.