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KEY PERFORMANCE INDICATORS IN EMERGING SUPPLY CHAIN
OF MANGOSTEEN IN INDONESIA
INTRODUCTION
Mangosteen (Garcinia mangostana L.) is the highly
demanded fruit for export commodity from Indonesia 
Total export volume:12,603 tonnes in 2010  20,000
tonnes in 2012  contributed 10% of exported fruit
from Indonesia (Directorate General of Horticulture,
2013).
The activities of mangosteen production in Indonesia
have not been efficient yet to compete internationally
Supply chain management in mangosteen business
must be initiated  integrating processes from
receiving raw material to selling finished
The development of more integrated mangosteen
supply chain should be followed by simultaneous
development of supply chain performance
Indicators of supply chain performance have an
important role to play in setting objectives, evaluating
performance, and determining future courses of actions
OBJECTIVE
Identify key performance indicators of an
emerging mangosteen supply in Indonesia
PERFORMANCE INDICATORS
OF SUPPLY CHAIN
Supply chain performance: the degree at which supply
chain fulfills end user requirements concerning the
relevant performance indicators at any point in time
and at what total supply chain cost (Vorst, 2000)
Performance indicators: criteria with which the
performance of product, service, and production
processes can be evaluated (Vorst, 2000)
Key performance indicators: a relatively small number
of critical dimensions which contribute more than
proportionally to success or failure in the market
(Christopher, 1998)
The Supply-Chain Council’s Supply-Chain Operations
Reference (SCOR) model  a standard supply-chain
process reference model designed to fit all industries
(Aramyan et al, 2006)
A set of supply-chain performance indicators
advocated by SCOR:
• Reliability measures
• Responsiveness measures
• Agility measures
• Total supply chain management cost measures
• Asset management measures
Emerging supply chain  introduction of new system to the
members of chain usually requires special effort
The conflicting goals of individual members in the supply chain
 complexity commonly faced by supply chain members
Key performance indicators of the supply chain should be
identified to determine critical dimension which contribute to
success of chain as a whole by considering the integration of the
goals of the supply chain  multi-criteria decision making
Level Detail Degree of Importance
Goals of supply chain Value Added Improvement 0.125
Market Access Improvement 0.110
Operational Efficiency Improvement
0.147
Financial Building 0.200
Information Access Improvement
0.176
Risk Reducing 0.154
Sustainability Partnership 0.088
Atribut of perfomance Reliability 0.182
Responsiveness 0.161
Agility 0.157
Total Supply Chain Management Cost
0.237
Supply Chain Asset Management
0.264
Performance indicators for reliability Perfect Order Fulfillment 0.333
Product Quality 0.333
Process Quality 0.333
Performance indicators for responsiveness Order Fulfillment Cycle Time
0.739
Product Lateness 0.261
Performance indicators for agility Upside Supply Chain Flexibility
0.553
Upside Supply Chain Adaptability
0.224
Downside Supply Chain Adaptability
0.224
Performance indicators for total supply chain management cost Production Cost
0.333
Distribution Cost 0.333
Cost of Goods Sold 0.333
Performance indicators for supply chain asset management Cash to cash Cycle Time
0.333
Return on Supply Chain Fixed Asset
0.333
Degree of Importance of Mangosteen Supply Chain Performance Indicators
The main goal of the emerging Mangosteen supply
chain in Indonesia is financial building
The most important performance indicators:
• Supply chain asset management
• Order fulfillment cycle time  lack of quantity
• Upside supply chain flexibility  lack of quantity
CONCLUSION AND FUTURE OUTLOOK
The result of key performance indicators identification helps to
guide the members of the Mangosteen supply chain in making
trade-off between performance components to improve the
performance of the entire supply chain
The key performance indicators can be used for future
improvement of supply chain performance by designing the
supply chain structure and business process  performance of
the supply chain can be optimized
Performance measurement system should also be developed for
measuring the cahnging degree of mangosteen supply chain
performance
Mangosteen key performance indicators

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Mangosteen key performance indicators

  • 1. KEY PERFORMANCE INDICATORS IN EMERGING SUPPLY CHAIN OF MANGOSTEEN IN INDONESIA
  • 2. INTRODUCTION Mangosteen (Garcinia mangostana L.) is the highly demanded fruit for export commodity from Indonesia  Total export volume:12,603 tonnes in 2010  20,000 tonnes in 2012  contributed 10% of exported fruit from Indonesia (Directorate General of Horticulture, 2013).
  • 3. The activities of mangosteen production in Indonesia have not been efficient yet to compete internationally Supply chain management in mangosteen business must be initiated  integrating processes from receiving raw material to selling finished
  • 4. The development of more integrated mangosteen supply chain should be followed by simultaneous development of supply chain performance Indicators of supply chain performance have an important role to play in setting objectives, evaluating performance, and determining future courses of actions
  • 5. OBJECTIVE Identify key performance indicators of an emerging mangosteen supply in Indonesia
  • 6. PERFORMANCE INDICATORS OF SUPPLY CHAIN Supply chain performance: the degree at which supply chain fulfills end user requirements concerning the relevant performance indicators at any point in time and at what total supply chain cost (Vorst, 2000) Performance indicators: criteria with which the performance of product, service, and production processes can be evaluated (Vorst, 2000)
  • 7. Key performance indicators: a relatively small number of critical dimensions which contribute more than proportionally to success or failure in the market (Christopher, 1998) The Supply-Chain Council’s Supply-Chain Operations Reference (SCOR) model  a standard supply-chain process reference model designed to fit all industries (Aramyan et al, 2006)
  • 8. A set of supply-chain performance indicators advocated by SCOR: • Reliability measures • Responsiveness measures • Agility measures • Total supply chain management cost measures • Asset management measures
  • 9. Emerging supply chain  introduction of new system to the members of chain usually requires special effort The conflicting goals of individual members in the supply chain  complexity commonly faced by supply chain members Key performance indicators of the supply chain should be identified to determine critical dimension which contribute to success of chain as a whole by considering the integration of the goals of the supply chain  multi-criteria decision making
  • 10. Level Detail Degree of Importance Goals of supply chain Value Added Improvement 0.125 Market Access Improvement 0.110 Operational Efficiency Improvement 0.147 Financial Building 0.200 Information Access Improvement 0.176 Risk Reducing 0.154 Sustainability Partnership 0.088 Atribut of perfomance Reliability 0.182 Responsiveness 0.161 Agility 0.157 Total Supply Chain Management Cost 0.237 Supply Chain Asset Management 0.264 Performance indicators for reliability Perfect Order Fulfillment 0.333 Product Quality 0.333 Process Quality 0.333 Performance indicators for responsiveness Order Fulfillment Cycle Time 0.739 Product Lateness 0.261 Performance indicators for agility Upside Supply Chain Flexibility 0.553 Upside Supply Chain Adaptability 0.224 Downside Supply Chain Adaptability 0.224 Performance indicators for total supply chain management cost Production Cost 0.333 Distribution Cost 0.333 Cost of Goods Sold 0.333 Performance indicators for supply chain asset management Cash to cash Cycle Time 0.333 Return on Supply Chain Fixed Asset 0.333 Degree of Importance of Mangosteen Supply Chain Performance Indicators
  • 11. The main goal of the emerging Mangosteen supply chain in Indonesia is financial building The most important performance indicators: • Supply chain asset management • Order fulfillment cycle time  lack of quantity • Upside supply chain flexibility  lack of quantity
  • 12. CONCLUSION AND FUTURE OUTLOOK The result of key performance indicators identification helps to guide the members of the Mangosteen supply chain in making trade-off between performance components to improve the performance of the entire supply chain The key performance indicators can be used for future improvement of supply chain performance by designing the supply chain structure and business process  performance of the supply chain can be optimized Performance measurement system should also be developed for measuring the cahnging degree of mangosteen supply chain performance