Measuring supply chain performance in the fabric industry in Cigondewah

Abstract

Cigondewah is one of the most well-known industrial centers in Bandung that is popular for its fabric industry. Business activities in Cigondewah have an important role in the lives of workers and the development of the regional economy. Although the business activity in Cigondewah is still promising, competition in the future cannot be avoided. The advancement of technology and also the ASEAN Economic Community (AEC) have resulted in even tighter competition. Most small to medium sized (SME) industries are facing the same challenge, which are related to human resources, production, packaging technology, product standardization, branding, promotion and marketing, capital access support, and lack of public/domestic market education about MEA 2015. In the production area, several problems also exist, such as availability of raw materials, price of materials, and also limited number of suppliers; as a result, entrepreneur in Cigondewah are highly dependent on their suppliers. There are many possible ways to solve this problem; one of them is by analyzing the Supply Chain Management Practice (SCMP) in the Cigondewah Industrial Center. Previous research showed that higher application and improvement in SCMP would directly lead to an increase in supply chain performance and overall company performance (SCPM). Supply Chain Performance Measurement (SCPM) consists of seven variables: supply chain management flexibility, supply chain management integration, responsiveness to customers, efficiency, quality, product innovation, market performance, and partnership quality. This research involved 30 respondents who represented their businesses. Some of the respondents were the owners or people who were in charge in their business. They were selected using the convenience method. Using descriptive statistics, the information on how supply chain was being implemented in Cigondewah could be obtained. The results showed there are no dominant variables among these seven variables. All of the variables linked to the SCPM are in good agreement with the criteria.