Supply Chain Framework at the Rubber Company with a Profit Sharing approach in ensuring Material Availability

Abstract

This research was conducted in rubber factory in Indonesia. Today, businesses need a more efficient supply chain that is able to resolve complex challenges in the present. This research is aimed at increasing the company’s competitive advantage by designing supply chain framework with profit sharing system to ensure material availability. This research is conducted by using data reduction method in determining quantitative data for input Stream Value Mapping and Supply Chain Management. Determination of rubber material purchase price is done by using the average trend of rubber price so that the purchase of rubber material is done flat. In order to create trusts in the supply chain, profit-sharing systems are used so that suppliers will supply the right, consistent quantity, quality, and timing of delivery. The results obtained supply chain frameworks are better able to ensure process efficiency and material availability. If applied, this framework will save up to 29.17% processing time.