Analysis of Supply Chain Performance Improvement in the Fish Processing Industry

Abstract

This study aims to identify the supply chain condition of the red snapper fish processing industry, assess the supply chain performance, and recommend performance improvements based on the performance measurement results. The study was conducted in Brondong District, Lamongan Regency, East Java, Indonesia. The methods used are the Supply Chain Operations Reference (SCOR) model and the Analytical Hierarchy Process (AHP), which measure effectiveness and efficiency parameters. Data were collected through interviews and field observations with expert respondents representing fishermen, collectors, and the fish processing industry. The results showed that the supply chain performance of the fishermen, collectors, and fish processing industry was 67.52% (poor), 88.11% (average), and 95.09% (excellent). The low performance was mainly in the fish catch composition accuracy and raw material handling practices. Root cause analysis was conducted to identify the leading causes, such as poor raw material quality, high raw material costs, and low cash-to-cash cycle time. Recommendations for improvement include handling raw materials training, using better cooling technology, and accelerating debt payments. Implementing lean supply chain management with the 5S system will improve operational efficiency and final product quality. Support from all stakeholders and government is essential for successfully implementing this strategy. Further study on the impact of lean implementation on environmental and social sustainability and exploration of new technologies for efficient fish handling and processing is needed.