Indicator of supply chain management performance in small households agro-industry

Abstract

This study aimed to analyze the effect of product, information, and money flow indicators on the supply chain management in small household’s agroindustry. This research was carried out in the brown sugar agroindustry at Yogyakarta Region. Determination of the location was done by the purposive method (center of brown sugar production). The samples were 150 respondents consisting of farmers, small household’s agroindustry, CPUs, collectors, production centers, and consumers. Data analysis using PLS-SEM consisted of two submodels. The results showed that product flow, financial flow, and information flow are significant as supply chain management performance indicators. The product flow was ranked highest with a value of 3.76 from the Likert scale of 1-5. The supply of product from suppliers to consumers has been well integrated. However, there is a need to improve at central processing units (CPU) because there is still product accumulation. Information flow was ranked second, where communication between lines has been intertwined smoothly (3.74). To improve performance in this indicator, online communication is essential hence demand and supply data are quickly conveyed. The financial flow was ranked last (3.65). There are still funds that stop at the CPU level due to fluctuations in demand and supply.