Performance Measurement of Palm Sugar Business using the Integration of Supply Chain Operation Reference (SCOR) and Objective Matrix (OMAX)

Abstract

Arenga pinnata is one of non-timber forest products (NTFPs) commodities that have high economic value. This tree is one of the multipurpose commodities because almost all parts of the tree can be utilized. The people around the forest have a lot of palm sugar as one of their livelihood sources. However, supply chain management of palm sugar businesses has not been integrated from the supply of raw materials, the production process, distribution and marketing pf the product. Measurement of Palm Sugar Supply Chain Performance is conducted to measure the performance of supply chain of palm sugar and formulate the recommendations on indicators that are still below target. The research was located in Bonto Sinala village, Sinjai Regency, South Sulawesi, Indonesia. Data collection methods through interviews using a questionnaire in the palm sugar farmer group. Data analysis was carried out by implementing the Supply Chain Operation Reference model using the Analytical Hierarchy Process (AHP) and Objective Matrix (OMAX)model.The result study of measurement the supply chain performance using Supply Chain Operation Reference (SCOR) method found in 24 KPI with 4 KPI for plan variables, 4 KPI for source variables, 10 KPI for make variables, 3 KPI for deliver variables and 3 KPI for return variables. The overall supply chain performance value is 6.62 with 17 KPI that included in the green category, 3 KPI that included in the yellow category, and 4 KPI that included in the red category. KPI that included in the yellow and red categories must be corrected immediately. Keywords: Supply chain, palm sugar, SCOR, OMAX