Kevin - Artículo 1
Kevin - Artículo 1
Kevin - Artículo 1
IOP Conf. Series: Materials Science and Engineering 505 (2019) 012011 doi:10.1088/1757-899X/505/1/012011
Email : yohana.dianputri93@gmail.com
1. Introduction
Companies must have competitive advantages in similar industries so that the company is able to
capture market share and gain profit. Competition lies in how companies implement processes in
producing products or services that are better, cheaper and faster than their competitors. Therefore, in
facing business competition in various industries, a strategy is needed in the form of efficiency and
effectiveness.
According to Anas, (2011). Increasing the company's competitiveness in the form of efficiency,
one of which can be done with the integration of the company's supply chain activities [1].
Integration of all elements of the company in meeting consumer demand, which is the unity of
suppliers, manufacturing, delivery processes, and customers. This is something very complex because
so many parties are involved and incorporated in the supply chain management chain [2].
One fundamental aspect of a company's operations is performance management and continuous
improvement. This needs to be done because the supply chain does not only involve internal
companies, but suppliers must have good performance [3].
Assessment of supply chain management performance between suppliers, companies, and
customers can be measured by one of the supply chain management performance measurement
models, namely the supply chain operation reference (SCOR) model. Basically SCOR is a form of
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1st International Conference on Industrial and Manufacturing Engineering IOP Publishing
IOP Conf. Series: Materials Science and Engineering 505 (2019) 012011 doi:10.1088/1757-899X/505/1/012011
supply chain operation model that undergoes renewal to become three intact entities, namely business
processes, benchmarks, and cross-functional frameworks in the supply chain [8].
The use of the SCOR model in building the concept of supply chain performance measurement
based on the process, makes the company able to evaluate supply chain performance holistically to
conduct monitoring and control, communicate organizational goals to functions in the supply chain
and find out where an organization is relative to competitors, and determine direction of improvement
for the creation of competitive advantage.
This paper focuses on the application of the SCOR model to the concept of supply chain
performance measurement in manufacturing companies with the right approach to solving problems.
Add to this a number of relevant literature from journals and literature studies that show several
approaches from researchers to solve supply chain problems. The approach used is the supply chain
operation reference model.
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1st International Conference on Industrial and Manufacturing Engineering IOP Publishing
IOP Conf. Series: Materials Science and Engineering 505 (2019) 012011 doi:10.1088/1757-899X/505/1/012011
Pretorius (2013), provides recommendations for the SCOR model in measuring performance by
looking at perceptions of customer-facing and internal facing [10].
Customer facing, which is to measure the performance attributes of reliability, responsiveness,
agility to customers and suppliers. Internal facing is to measure supply chain cost and asset
management efficiency [11].
Figure 1 explains that from each level the company can find out the location of the problems that
hinder the company's performance. SCOR consists of two parts, namely performance attributes and
metrics. Performance attributes relate to company strategy, each performance attribute will have their
own benchmarks in the metrics. grouping metrics used to express strategy, SCOR recognizes five
erformance attributes namely, reliability, responsiveness, agility, costs and assets management. A
metric is a measure that can be verified, embodied in quantitative or qualitative forms, and defined
against a particular reference point. One of the main requirements for this performance measurement
is reliable and valid [8].
Several companies have proven that the SCOR model has been tested in measuring the level of
supply chain performance in a company that can be used as a reference for further improvement of
business processes. Companies that have applied the SCOR model to measure the supply chain
performance of a company include Schlumberger, Tokyo Gas Co., Ltd., Chevron, and many other
companies [6].
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1st International Conference on Industrial and Manufacturing Engineering IOP Publishing
IOP Conf. Series: Materials Science and Engineering 505 (2019) 012011 doi:10.1088/1757-899X/505/1/012011
Caro and Cavazos (2012) state that to get the best strategy in the SCOR model, performance
indicators are determined to analyze and compare with the company’s objectives to improve supply
chain performance.
Gap analysis is done if there is a gap between actual data and benchmark data, Gap here is
intended if the gap is a negative result which means the next mapping must be done. According to
Peter Bolstroff (2012), there are 3 methods in gap analysis, namely:
1. The Lost Opportunity Measure is Calculating lost income before order entry due to lack of
product availability
2. The Canceled Order Measure is Calculating lost revenue after an order entry because the
canceled order is due to poor delivery performance.
3. The Market Share Measure is an attempt to project revenue increases based on achieving
competitive advantage in the customer-facing metric category.
Based on previous research the advantages and disadvantages of the SCOR model are compared
with other methods, namely:
1. The advantage of this SCOR model is as a process reference model with its ability to integrate
business processes, benchmarks and analysis of best practices into the supply chain
framework in various dimensions [11].
2. Analysis of the Weakness of the SCOR model This weakness analysis is based on the use of
the SCOR model in previous research. This is done so that the supply chain performance
measurement model developed in accordance with the problems in the object of research. The
weaknesses of the SCOR model first do not do an alignment between the performance
measurement system and the business strategy and functional strategy. Secondly, it does not
translate the vision, mission, and strategy of the company into the determination of the
objectives and size of the scorecard, and the three key performance indicators that exist
remain tailored to the needs of the company not based on the existing supply chain strategy.
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1st International Conference on Industrial and Manufacturing Engineering IOP Publishing
IOP Conf. Series: Materials Science and Engineering 505 (2019) 012011 doi:10.1088/1757-899X/505/1/012011
6. Conclusion
A successful company is a company that is able to meet consumer demand in terms of providing
products in the right place, the right quality and on time. In this case, supply chain management is the
key determinant of the company's competitive advantage. Currently, companies that have better supply
chain performance are more likely to win the competition.
The approach used to measure performance is by using the SCOR model. The supply chain
performance measurement system will produce output in the form of total performance value and level
of the company’s supply chain performance indicator category.
The main cause of the supply chain performance is less efficient lies in the low performance of the
material management process (source). The low performance of the source process is caused by
several things, including Inaccurate forecast, unintegrated supply planning, weak coordination
between parts of the company, inadequate supplier performance, poor inventory management, and no
inventory checking in the warehouse. In implementing the SCOR Model, it is expected that real
participation from all components of the company, especially at the top management level. As in
previous research, supply chain management involves many parties and functions within the company
(internal) or outside the company (external). The parties involved are not only those within the scope
of operations and production but also the marketing, finance and other parts [19].
This paper presents several analytical techniques that can measure supply chain performance that
needs to be evaluated. The SCOR approach is expected to be a solution to solve supply chain problems
and is able to provide value for the achievement of the company's overall supply chain performance.
Thus in the next research is developing a measurement model of supply chain performance derived
from the supply chain strategy. The development of this model deploys business strategies into the
supply chain strategy so that a key performance indicator is produced that matches the needs of the
company's strategy.
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1st International Conference on Industrial and Manufacturing Engineering IOP Publishing
IOP Conf. Series: Materials Science and Engineering 505 (2019) 012011 doi:10.1088/1757-899X/505/1/012011
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