Integration of supply chain management to business performance and business competitiveness of food micro industry

Abstract

The food sector is a sector with great potential to be developed, especially in the Bekasi Regency area in Indonesia. Tight business competition and limited resources have forced entrepreneurs to reconsider production processes, one of which is by implementing Supply Chain Management (SCM). With MSC analysis, it is expected that business processes can be more responsive, so that they can respond quickly, effectively, and efficiently to all forms of changes in the market and further increase business competitiveness. The study involved 87 SME entrepreneurs in the food sector who were randomly obtained from several developing SME communities in Bekasi Regency, West Java and 5 experts related to the food industry. Research variables include; Supply Chain Management (SCM), Business Performance and Business Competitiveness. The results showed that in creating a business competitiveness, entrepreneurs need to improve the SCM system. SCM can affect Business Competitiveness directly, as well as through the Business Performance variable.